Temporary Disability Period Shows Signs Of A Crisis
The Temporary Disability period showed signs of deterioration of the return to work function. I was supposed to post on premium audits and classification by analogy. I then read a report from the NCCI that was astounding to me. I will cover classification by analogy next week.
According to NCCI, The average duration of workers compensation temporary total disability claims benefits increased during the first half of 2011. This is very likely due to the economy and the availability of jobs in a return to work situation.
The average total number of disability days for a workers comp claims is 149 days. Ouch! The number looks even worse if you compare it to a very well-known standard. After 6 months of disability, the likelihood of a successful return to work is almost zero.
The 180 days (6 month) marker is a well-known and accepted standard for returning injured employees back to work. If I use simple math, it could just be me, but I see a very damaging trend in workers comp.
Subtracting the 149 days from the 180 day precipice, leaves 31 days, or basically a month. I may be making a very large assumption, but that means if the average Workers Comp claim increases by one month, then a Workers Comp crisis would result.
If the average length of disability extends beyond 180 days, does that mean that the average claim will be a permanent total claim or one where the vocational rehabilitation benefits would skyrocket?
That is why employers and their Workers Comp claim departments and adjusters (including TPA’s) may have to adjust their paradigms to throwing more effort into the return to work at the very beginning of the claim.
You may want to check out my Five Keys/Secrets to Lowering Your E-Mod. I put this list together over 20 years ago. It is timeless information.
I will post some of my suggestions that employers can use to facilitate a more effective return to work program nest time.
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