Returning Injured Workers to Gainful Employment Saves Money
A Workers Comp program that includes returning injured workers to gainful employment comes from the list of Six Keys to Workers Comp Savings.
A light-duty or modified job program saves indirect claim dollars. I used the “indirect ” term as the amount remains hard to quantify – but the result can wreck claims.
The previous article on this website referred to timely first reports. Returning injured workers to gainful employment goes hand in hand with filing the first reports of injury quickly.
Returning Injured Workers Quickly – What J&L Is Seeing Now
Return-to-work programs, even if informal, save money indirectly. How?
- The injured employee still stays in a daily working pattern.
- It shows that the employer cares about the injured employee – another key
- If light or modified duty – much easier at the time of the full-duty physician release than returning injured workers from home to full-duty
- A Medical Payments Only (med-only) works great for your Experience Mod and or LDF for self-insureds.
- Sustains a great working relationship with your insurance carrier or TPA (self-insured)
- Reputation – see next section
Secret Internal Insurance Carrier or TPA Info
One of the checkboxes a claims adjuster analyzes on the reserving sheets that feed into your Experience Mod or LDF looks like this:
_Yes or No____Light-duty or Modified Return to Work Program Available
If the adjuster knows or asks during the Employer portion of the three-point contact that no light or modified work is available, the reserves increase dramatically. J&L reviews loss runs constantly and you can tell from the claims loss run whether or not an employer is returning injured workers on some type of light/modified duty.
Why? Because you leave the claims adjuster no choice. What could have turned into a small to medium-sized claim now results in a big claim with larger reserves.
The financial pain starts when the rating bureau produces the Experience Mod sheets or the actuary provides the LDF calculation. The financial pain intensifies when the premium audit bill comes in from the carrier or the yearly WC budget comes from the actuary. Ouch!
The bottom line on returning injured workers to gainful employment – establishing a Modified Duty or Light Duty program pays off eventually.
