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Temporary Total Disability Period Increases Nationwide

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Temporary Total Disability Period Claims

In a recent workers compensation study by NCCI , the total disability period for injured workers indicated the Temporary Total Disability (TTD) period had increased sharply over the last three years.

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I decided to check a few numbers their study produced to see if there were any underlying statistics that could have added to the increase. There was one statistic that I thought would require a further look.

The number of TTD days increased from 129 to 141 from 2006 until 2009. The unemployment rate increased over the same period from 4.6% to 8.7%. The TTD days increased 19% while the unemployment rate increased over 100%.

I cannot draw a direct correlation between the unemployment numbers and the TTD period both increasing. I would say there was some effect on TTD days by the unemployment numbers.

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If there is no position in a company for an injured worker returning to work, the expected TTD period would be lengthened. With an enormous increase in unemployment, this would tend to remove positions from the employer while the injured employee was on TTD benefits.

One of the Five Keys To Saving On Workers Comp that I have written and spoken about very often is a return to work program. I do realize that in today’s economy employers of all types and sizes are finding it difficult to return an injured employee to work.

The staggering statistic by not returning an employee to work is a 400%+ claims costs increase. As the old saying goes, the longer a claim is open, the payouts become exponentially larger. An adjuster will heavily increase the reserves on a file where an employer refused a return to work. The risk of future payouts is extreme when this happens.

I had performed three large studies on Workers Comp files over the last fifteen years. The 400% came from those studies.

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James Moore

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Mgmt Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications

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