JL_risklogo.png

Workers Comp Audit Stress Reducer
Use It For Your Next Premium Audit

Debit Cards For Workers Comp Temporary Total Payments

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

Debit Cards Payments Money Management By Injured Employee

Having debit cards for WC payments seems like a good idea.

I will be traveling to the Workers Compensation Conference in Las Vegas next week. I usually attend a national conference every 5- 7 years. My last conference attendance was the RIMS conference in Orlando.

Blurry Picture Of Woman Hand Holding debit cards Payment Concept
(c) 123rf.com

One of the main reasons I go is to see the new ideas and companies in the vendor showrooms. One of the more interesting ones to me is actually a debit card that can be loaded with an injured employee’s Workers Comp weekly or biweekly benefit payment. The company can be found here.

I think this is a great idea as the injured employees do not have to wait for a check to make its way through the mail. There are certain carriers that mail checks across the nation as the checks are printed in one central location.

As many Workers Comp adjusters will tell you, the amount of time they spend on the phone with someone that did not receive a check timely can take up to a day of their time per week. I just checked with the online US Postal System postage and delivery calculator. It seems that the postal system can g et a check mailed First Class across the US in 3 days. That would seem to be somewhat inaccurate.

Loading up a debit card is a great idea for delivery of benefits. The administration of this type of program would seem to be a reduction in costs for carriers and TPA’s. A CPA had said that when all factors are totaled, checks cost approximately an additional $40 in costs including labor. I thought that was high until I realized that so many insurance company or TPA personnel have to i nput and account for the payment.

Picture Of Hand On bill machine For Debit Cards Payment Concept
(c) 123rf.com

The one major drawback I see is the ability of the injured worker to properly budget their funds. As we all know, when the monetary idea of money is taken away and replaced with plastic, the idea to overspend is great.

Some types of creditors (such as mortgage, credit card, and tax collectors) charge a fee to use a debit card to make a payment. Is it actually fair to the injured employee if they are required to pay fees? I would think that carriers and TPA’s would let the injured employee choose a regular mailed check or the debit card.

I will be asking them these exact questions next week. I will also report on anything that I see of value from the vendors. I mainly search for cutting edge products and services and not just a new marketing term for the same old services.

©J&L Risk Management Inc Copyright Notice

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

Table of Contents

Related...

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

Subscribe

Get the latest workers' comp news FREE!

Name
This field is for validation purposes and should be left unchanged.