As medical related costs increase, they drive up the cost of workers compensation insurance with them. While preventing workplace injuries is always the primary goal, it is also important to have an established claims management process in place before a loss occurs.
The following steps serve as a good roadmap for a successful workers compensation claims management process.
First, it is important to promptly report claims.
Prompt claims reporting leads to lower costs and is beneficial to the injured employee, employers and the insurance companies. This lessens the chance of increased medical expenses due to delayed medical care. Medical costs, administrative costs, litigation costs, lost-work time and indemnity payments can all be reduced by prompt claim reporting.
Most insurance carriers require all injuries to be documented on the workers compensation First Report of Injury Form.
Prior to the occurrence of an injury, employers should stress the importance of immediately reporting all injuries to managers.
This procedure allows managers to evaluate a potential claim and to facilitate the appropriate reporting process with the employer’s insurance carrier. Ideally, a company’s accident reporting protocol should be included in training and should be posted at a high visibility common area such as a break room.
It is also important that the employer is able to facilitate immediate medical care for an injured employee when necessary.
This can dramatically improve health outcomes and reduce costs (both medical and legal). Additionally, employers providing return to work programs and alternate duty employment options can prevent wage loss, reduce lost time, increase productivity and also improve morale. Return to work programs and alternate duty employment are excellent ways to lead to faster claims resolution and reduced costs as well.
A well thought-out claims management process can control an employer’s costs and maximize the benefit from the employer’s workers compensation insurance.
Costs may be increasing industry-wide. However, reducing the size of employer’s claims will lower a company’s overall long-term workers comp insurance costs. Additionally, better industry-wide claims management practices can slow the overall increases to the cost of workers comp insurance overall. It might also help proactive employers avoid having to pay more for comp insurance with a State Fund workers compensation policy.
