Not Reporting Claims Can Be Very Expensive
One way to pay more for WC claims is not Reporting Claims to your insurance carrier. The second part of the title is from the Fram Filter commercials. I had come up with four areas, which I have posted to blogs and our website often, on the Four (Now Five) Keys To Cutting Your Workers Compensation Costs.
When an employer delays or avoids reporting their First Reports of Injury (FROI), that employer will pay an extra 400% on their Workers Comp premiums. I performed two massive data studies using anonymous public Workers Comp data 10 years ago and then again two years ago. One of the hallmarks is that medical only and small lost time claims festering (a term I coined) costs employers big $$$.
If claims go unreported or delayed:
• Proper investigation by insurance staff cannot be completed
• Medical control is compromised
• Access to medical and other documents can be hampered
• Medical bills not process for fee schedule and PPO reductions
• Injured workers’ questions not answered, feel like they are in limbo
• Higher amount of attorney involvement
• Fines and penalties possible
• Time limit on certain defenses tolled
I could go on with the list, however I think you see my point. J&L is dedicated to saving employers Workers Comp premium by using time-tested techniques. Not involving your carrier or TPA is not a Risk Management cost savings technique. It may work well in the short term, but not in the long term.
One of my PowerPoint slides says All Claims Are Set in Stone after 48 hours. I will cover that point next time. If you wish to receive our newsletter, which is a summary of the blog, sign up for our weekly email. The signup box is down the right side of the page.
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