Workers Comp Large Deductible Programs – 2023 Resolutions
Every year J&L provides resolutions for regular voluntary market policies and self insureds. During a recent phone call, blog and newsletter reader asked if I could do an article on workers comp large deductible programs for 2023.
I agreed that workers comp large deductible programs should be a third category of the 2023 resolutions.
Top 10 2023 Resolutions
- Your Experience Modification information is provided to the rating bureaus. Large deductible policy owners sometimes remark that they are out of the workers comp system. You are still in it for the most part even if your policy is not structured the same as a voluntary market policy. Check this article for a full discussion of large deductible Experience Mods. Avoid this surprise by monitoring your Mods.
- If your company is satisfied with your current treating physicians – make sure those medical providers are in the carrier’s medical network. Better yet, see if the carrier will allow you to use your own already-established medical networks. This request would have to occur before the policy is purchased initially or at renewal time. This will be difficult to change once the policy is in force.
- Make a comparison every year to see if voluntary market policy, captives, self insurance, PEOs or other programs are more economical than your workers comp large deductible policy. The variables change every year.
- Read your policies – including the endorsements. Your large deductible policy will be different than the prior voluntary market policy.
- Allocated Expense Charging – ALAE such as defense attorneys, independent medical exams, medical bill review, rehabilitation case managers, or incoming medical phone triage may all be charged to you at 0%, 50%, or 100%. These amount tend to be a large amount of the file expenditures. Check those figures closely.
- Check with the injured workers – if the carrier’s service is not up to par your injured employees will let you know quickly. WCRI created a study where injured employees said that if they trusted their employer claim and return to work issues were minimal.
- Look over your claims loss runs at least every month. Online access is key to controlling your costs including loss runs. If you have online access, then you should be able to generate ad hoc loss runs whenever you need them. Compare the old loss run figures to the new ones to see if there have been any major changes.
- Check for the claim status –while you are online, check to see if the claims adjuster has left a recent claim status. Most adjusters update those every 30 – 60 days.
- Talk with your agent every six months or more often as needed. After your Experience Mod is produced six months into the policy is a good time or if you prefer speak to a consultant about your workers comp large deductible program.
- Safety will always be key. Safer employers – even large deductible employers – save money in the long run. Every dollar that is spent on safety returns as less injured employees and lower premiums.
- Bonus – 10 Year Time Span – with predictive analytics becoming a normal part of the policy process, insurance carriers are looking back at your workers comp program beyond just one or three years. Actuaries look back 10 years in most cases – so should your company.
Your company’s workers comp large deductible program 2023 resolutions may have more areas of concern. These eleven are examples of what to do each year.