Reducing Workers Comp Cost Using Rehabilitation Assessments for Leg and Arm As discussed previously, part of assigning an injured worker to transitional duty is the factor of "medical readiness" to assume a modified duty job. Thus, it is important to know an injured worker's physical capabilities and strengths. Let's look at the second area of significant physical assessment.
- Hand Strength
- Isometric Leg Lift and Arm Lift
- Visual Estimation of Effort
Two Studies Does Isometric Strength Predict Actual Dynamic Lifting Capacity? Isometric testing (static testing) is an assessment of how much force can be generated against an immovable object. Studied for over 40 years isometric strength testing is used to make hiring decisions, return-to-work recommendations and to assess validity of effort. In 40 years of isometric strength studies, only recently has a large normative database been used to find out if such raw measures of strength do, indeed, tell us how much an individual can actually lift. It was conclusively demonstratedin a study of 130,000 job applicants no meaningful predictions of dynamic lifting abilities based on isometric strength can be made because the range of the predictions is 80-120 pounds wide. The study was submitted for peer review and accepted for publication. More details as the date for publication approaches. Can the Static (Isometric) Leg Lift and Arm Lift Be Used to Classify Validity of Effort? In the 30 years of using isometric strength to classify validity of effort, not a single peer-reviewed study was ever published demonstrating the Static Leg Lift and Arm Lift could be used as an index of effort. The same type of biofeedback mechanism facilitating successful "cheating" during a hand strength assessment is also at work during isometric activities. In another study on isometric strength, it was found 20 of 34 volunteers who had never before done isometric testing could successfully feign weakness by consistently reproducing submaximal forces during these isometric lifts. As a result, a 95% confidence interval says between 40% and 75% of those tested could successfully "cheat" during isometric tests. (workersxzcompxzkit) The study was accepted for publication. More details as the date for publication approaches. Author: Darrell Schapmire, MS of X-RTS Software Products & Testing Devices develops distraction-based tests for use in functional capacity evaluations. He can be reached at dschapmire@yahoo.com or http://www.exrts.com/
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©2008 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@WorkersCompKit.com
Shortly after an employer signs up for workers’ compensation insurance, someone (broker, insurance agent, insurance company, claims professional) whispers in their ear. . . “What are your options for MODIFIED DUTY after an injury?”
A really important question, since getting employees back to work promptly after an injury has a measurable impact on claim costs.
Modified duty programs [a.k.a. transitional duty (TD) return-to-work (RTW)] often raise many questions for an employer. The first being, “You mean we have to pay injured employees to do a job they were not hired to do?” Of course, the answer is YES!!!
Now the, WHAT IF and DO WE HAVE TO questions start to flow. . .
What if we don’t really have a position to accommodate a sedentary or light duty release?
What if other employees get mad and quit because it’s unfair they have to do the injured employee’s job, plus their own, while the injured employee is just “sitting around?”
Do we have to have a RTW program?
The real question is . . . What benefit does my company get, if we have one? In truth, an Employer is not obligated to have a formal Modified/Light duty program; however, there are a couple of good reasons for doing so.
According to industry experts, once an employee is out of work for more than six months post injury, s/he is much more likely to remain in the workers’ compensation system indefinitely, known as “psychological disemployment” Getting injured workers back to work as quickly as possible, helps them retain their skills and promotes positive employee relations. Both are pretty good reasons to explore RTW programs.
A further benefit may show up in the employers “bottom line.” By providing a modified/light duty opportunity, employers reduce their workers’ compensation payout which may lower their “modifier.” This fact can have a dramatic impact on future workers’ compensation insurance premiums.
So what if injured employees fail to take advantage of the program? The modified/light duty job offer is just that, an offer of employment. When an injured employee fails to take advantage of the program, s/he runs the risk of losing workers’ compensation benefits. This fact is a strong motivator for compliance and a key factor in resolving future claim disputes.
Modified/light duty programs should be a part of the employer’s long-term risk management strategy. But state regulations do differ. The process of effectively creating, evaluating, or improving an employer sponsored RTW program may be a challenge.
If you’ve not already done so, it’s a great idea to consult with an experienced risk management professional or occupational/vocational counselor. These folks have real life experience with many types of employers and will be able to assure your program is effective and in compliance with specific jurisdiction requirements.
Construction, Transportation, Retail. . . What options do employers have when they truly do not have the ability to create alternative jobs within their company? Stay tuned for more info on a special variety of Modified Duty Program – Transitional Work Programs.
Author: Gordon R. Butler, national authority/consultant on employability & wage capacity in workers’ comp, liability, PIP and LTD Claims. He can be reached at 321-377-1164 (cell) or email gbutler@soarresearch.com www.gbutlerconsult.com
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Do not use this information without independent verification.
All state laws vary.
©2008 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@WorkersCompKit.com
After the employer responds to the best practice assessment questions, recommendations are automatically generated in the timetable below which is a road map for improvement. Many employers do not realize there are many things they can do to reduce their workers’ compensation costs — but there are!
1. Start by taking the best practice assessment and getting your recommendations to find out what you are doing wrong. Getting your National WC Management Score is the first step, but don’t stop with the score.
2. Make the discussion as long as possible! You want to discuss as much as possible — what you are doing, what will work, what won’t work, what might work, the nature of your problems, etc. This is the start of a strategy session, so encourage as much participation. Bring in lunch.�
3. Next, assign responsibility for each action item. The recommendations AUTOMATICALLY populate the timetable
4. Add any items from your notes into the Timetable. No doubt, during the discussion that occurred during the assessment, you had a few ideas of what procedures could be changed to communicate with your employees more effectively, understand your TPA procedures more thoroughly, etc.
5. Select a completion date 1-2 weeks away, and make any comments that may apply.
6. If any recommendations don’t apply simply mark that on the timetable. However, make sure the entire group AND YOUR CONSULTANT agree that the recommendation doesn’t apply! Just because YOU don’t think it’s not a good idea to visit the claim office, doesn’t mean it’s not a good idea — sometimes an expert who has been in the field many years sees steps that are a benefit, but may not be recognized as such by an employer.
7. Set up the next meeting. Or, better yet, a weekly meeting — every Wed at 10 AM, for example. Include the Broker Claims VP, TPA AE, and your team. Hold everyone accountable to be at the next meeting (at every meeting) and make sure each participant completes their action items.
8. At the next meeting, next to each completed item, mark it in green as “DONE.”
It’s easy to get started!
Author: Rebecca Shafer, J.D. Rebecca works with every size company as a coach and consultant. She can be reached at 860-553-6604.
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WC Best Practices Quick Check: http://www.workerscompkit.com/intro/
Do not use this information without independent verification.
All state laws vary.
©2008 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@WorkersCompKit.com
“You didn’t complete our form.” – Trying to Traverse a Tar Pit in New York Workers’ Compensation
Although employers are a party to every workers’ compensation claim, they are largely kept away from the details of the proceedings – a mixed blessing, at best.
On the one hand, they are spared the Kafkaesque objections, explanations and denials offered by operators, answering systems and WCB and carrier employees. On the other hand, they pay for them.
A decision of the courts, reported on June 11, 2009 in New York described a series of hearings and appeals lasting nine years trying to straighten out a WCB keystroke error placing the wrong carrier on notice.
This incident does not represent the tip of an iceberg, it is the leading edge of a glacier.
5 Ways to Avoid Getting Stuck in the Tar Pit
First: Employers must be aware of the morass awaiting their employees on the simplest of claims and the unnecessary costs passed on to the employer.
Second, the employer must be aware of measures to take to hold the worst abuses in check, for the benefit of the employer and every worthy employee in need of benefits and treatment.
Therefore, do this:
1. Report accurately and follow up immediately.
Even the most prompt and detailed claim report will be of no use if the person on the other end ignores the material or offers excuses why it was not used, always without notifying the employer a problem is in progress.
After claim reporting is done, call the carrier and ask if the file has anything “missing.” Often an employer, employee, attorney or doctor is told of some form, not mentioned or required in the law, which was not “completed.” These silent and unseen forms can hold up the simplest claim.
2. Communicate.
At the beginning of a claim, call the employee and the employee’s doctor and ascertain if they are having problems. Chances are, they are having the same problems you are and a few more besides. They will be grateful for your concern and work with you, not against you.
3. Record dates and times; keep copies of correspondence.
If you do not document, even by a short note, you will be relying on memory and hoping others have the same concerns you have. In fact, should any problem or complaint arise, you will be informed memory counts for nothing. There are times, in fact, where you will do well to mail documents with return receipt requested.
4. Be prepared for excuses.
When things go wrong, don’t expect assurances someone else will set them right. Instead, you will almost always be told it is your fault and no one else’s. This is simply a speed bump you can easily cross if you slow down and proceed with caution. Politely ask for the superior and mail copies of your notes and documents. This will do less good as time passes but is very effective for making sure a claim is not sidetracked into a swamp at the beginning. (workersxzcompxzkit)
5. Communicate again.
As each hurdle is crossed, talk to your employee and the medical provider. This maintains morale and fosters a group spirit. Work comp is intended to be a system for delivering solutions, not dumping problems.
Author: Attorney Theodore Roncais a practicing lawyer from Aquebogue, NY. He is a frequent writer and speaker, and has represented employers in the areas of workers’ compensation, Social Security disability, employee disability plans and subrogation for over 30 years. Attorney Ronca can be reached at 631-722-2100.
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Try Our FREE WC Best Practices Quick Check: http://www.workerscompkit.com/intro/
WC Calculator: www.reduceyourworkerscomp.com/calculator.php
Do not use this information without independent verification.
All state laws vary.
©2008 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@WorkersCompKit.com
The Department of Labor and Industries (L&I) in Washington state gave a workplace safety award to Columbia Vista Corp. in Vancouver.
The award is part of L&I’s Voluntary Protection Program (VPP), which recertified the Vancouver company as a STAR site. The designation means the facility continues to reach the highest level of workplace safety. It recognizes the company’s management and employee commitment and participation in an ongoing safety and health program, and means Columbia Vista Corp. successfully passed an L&I audit and extensive onsite review.
“The safety of our workforce is a top priority at Columbia Vista,” said Robert Lewis, president. “On behalf of our employees, we are honored by this award because it recognizes their ongoing commitment and dedication to a safe workplace.”
Columbia Vista has 92 employees working at two Clark County facilities: a mill located along the Columbia River, and a dry kiln remanufacturing plant located in the Fruit Valley area. (workersxzcompxzkit)
This was the company’s first re-evaluation since its initial VPP approval in 2005. Only 2,000 work sites, out of more than seven million nationwide, have received a VPP award.
Author: Robert Elliott, J.D.
WC Best Practices Quick Check: http://www.workerscompkit.com/intro/
WC Calculator: www.reduceyourworkerscomp.com/calculator.php
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Do not use this information without independent verification.
All state laws vary.
©2008 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@WorkersCompKit.com
Administrator Marsha Ryan was cited for a stellar performance during the 2008-2009 year by the directors of the Ohio Bureau of Workers’ Compensation and Governor Ted Strickland.
Governor Strickland applauded Ryan for making the Ohio’s workers’ compensation system one of the best in the nation, saying her integrity can only be matched by her dedication and commitment to her employees and Ohio’s employers and injured workers.
Ryan’s most significant accomplishment was bringing greater parity to group and non-group employer premium rates. Rate reform is expected to provide non-group rated employers with up to a 25% premium reduction.
Other initiatives included:
- Preparing a model and beginning evaluation of the Deloitte Study recommendations for agency-wide improvements.
- Successfully implementing the MIRA II reserving system.
- Exhibiting superior managerial skills, leadership and fiscal management of BWC. Board Chairman William Lhota praised Ryan for confidently leading Ohio’s workers’ compensation system with integrity, accountability and humility and successfully navigating BWC through the current economic climate.
- Through her leadership, Ohio’s workers’ compensation system is becoming more insurance-like, with businesses paying more equitable premiums based on the risk they bring to the system, he concluded.
Strategic goals for BWC for fiscal year 2010 were also presented focusing the agency’s continued efforts to restore operational excellence by ensuring stable costs, better services, accurate rates and safe workplaces. (workersxzcompxzkit)
To achieve these goals, the administration will foster an atmosphere of good governance, transparency, actuarial soundness, performance-based rates, and planned and timely-announced implementation of agency initiatives. Internal initiatives will focus on continued operational cost savings and staff development.
Author: Robert Elliott, J.D.
FREE tools to try:
WC Calculator: www.reduceyourworkerscomp.com/calculator.php
TD Calculator:
www.ReduceYourWorkersComp.com/transitional-duty-cost-calculator.php
WC 101: www.ReduceYourWorkersComp.com/workers_comp.php
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Do not use this information without independent verification.
All state laws vary.
©2008 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@WorkersCompKit.com
Asking Acceptable Questions When Interviewing Workers Under ADA
Since the enactment of the Americans with Disabilities Act (ADA) in 1990 job interviews often are needlessly uncomfortable for many employers. In addition, many workers’ compensation laws add additional restrictions on questions about prior workers’ compensation claims. Nevertheless, a skilled interviewer can obtain all the information needed about an applicant without coming close to violating statutes regarding disability.
Applicants inherently want to talk about themselves. In an interview with a comfortable atmosphere the most important characteristics – motivation and character -quickly emerge if the interviewer lets them. Therefore, if you want to learn more about the applicant, listen more and ask less.
People who are comfortable quickly allow a conversation to drift into areas regarding their strengths, principally what the employer wants to know. People plagued with negativity also let it be known without much prodding, if allowed to express themselves.
A young applicant, even with severe physical restrictions, does not acquire optimism and skills without an attitude allowing for the successful navigation around hurdles. Nor are such people a risk for extended disability. They have already learned what every vocational rehab specialist tries to instill – optimism and creativity in solving physical tasks.
In a job interview, describing the mental and physical skills of the job opening is as necessary as describing the hours, pay and benefits. No law prevents those from being discussed. A confident applicant has the sense not to apply for a position they cannot reasonably fill and will be the one to initiate discussion of possible problems.
It is more important to notice and remember indications of attitude catastrophe; the principal reason relationships go bad, than to focus on probing questions.
Try approaching the interview this way:
- Begin with basic questions not likely to elicit tension.
- Allow the applicant to talk, and expand, where the topic is comfortable.
- Listen and don’t assume.
- Supplement with brief descriptions of tasks and duties.
- Carefully listen to the responses.
Remember, job applicants are making a first impression on you. And in turn, the company is making a first impression on them. (workersxzcompxzkit)
Goal: A person who skillfully listens is more respected than a person who unskillfully talks, and is a person who learns what needs to be known.
Author: Attorney Theodore Ronca is a practicing lawyer from Aquebogue, NY. He is a frequent writer and speaker, and has represented employers in the areas of workers’ compensation, Social Security disability, employee disability plans and subrogation for over 30 years. Attorney Ronca can be reached at 631-722-2100.
Follow Us On Twitter: www.twitter.com/WorkersCompKit
Do not use this information without independent verification.
All state laws vary.
©2008 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@WorkersCompKit.com
Let’s Review with Deanna Slater, a noted authority on captives, from Arthur J. Gallagher ….
A Captive is an insurance company providing insurance to and controlled by its owner(s).
Workers’ Compensation is the line of coverage making the most sense to participate in a captive since there is long lag time when the claim is actually paid out and closed.
There are Eight Top Reasons to Consider a Captive
- Returns underwriting profits and investment income
- Reduces costs
- Improved risk management
- Control over insurance destiny
- Multi-state capabilities
- Addresses coverage or administration issues
- Improves cash flow
- Tax efficient vehicle with offshore and onshore domicile options
Let’s consider Reason #1
Return of underwriting profits and investment income is often the number one reason companies consider a captive as an alternative for their workers’ compensation insurance. After paying their premium and final audit billing they count the dollars spent and scratch their heads when they look at the dollars they had in claims for the year and ask this question:
Why would they pay say $300,000 in premium to an insurance company when they only experienced $50,000 in claims?
An all to frequent scenario leaves a company feeling they are leaving money on the table. The underwriting profit is historically what the insurance company expects to earn on an account after they pay out losses and spend their operating costs. If they can’t make an underwriting profit . . . how do they stay in business? Investment Income is the reason insurance carriers stay in business! However with the market having a bit of a tough time and insurance carriers unable to make a profit on their underwriting or their investment income, they are left with only 2 options:
- Keep rates low and go out of business (some are making this choice).
- Increase rates to start making an underwriting profit.
In a captive, a company pulls out of this insanity and pays premiums based on your OWN history not the industry performance.
You stop subsidizing your competitors and fund your own claims and in a Group Captive arrangement might risk share with other quality companies not Joe Somebody down the street.
You earn investment income on YOUR dollars sitting in your fund to pay out your claims and don’t let the insurance company take away the earning potential of your dollars. (workersxzcompxzkit)
Typically 3 to 4 years after the policy term ends, you reap the rewards as a business owner of the performance of your company’s performance and receive a dividend. A pretty good reason, wouldn’t you think!
Author: DeAnna E. Slater, CIC, AFSB is an Area Vice President with Arthur J. Gallagher Risk Management Services, Inc. in West Fresno, CA. She is a specialist in the alternative market as it relates to reducing workers’ compensation costs. Contact her at deanna_slater@ajg.com or visit her at http://www.captiveexpert.blogspot.com/
Reduce Your Workers Comp: www.ReduceYourWorkersComp.com/
WC 101: www.ReduceYourWorkersComp.com/workers_comp.php
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Do not use this information without independent verification.
All state laws vary.
©2008 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@WorkersCompKit.com
An act (LD 1456) ensuring construction workers are protected by workers’ compensation insurance was signed into law by Maine Governor John Baldacci effective January 1, 2010.
Under the new law, a person performing construction work at a construction site is presumed to be an employee of the hiring agent for the purpose of workers’ comp unless the person meets the definition of a construction subcontractor.
“This bill is one important step in resolving employee misclassification, the impact of which is felt among Maine workers, employers and the general public,” Governos. Baldacci said. (workersxzcompxzkit).
“Our workers lose vital employment protections and our employers are put at a competitive disadvantage in the marketplace as they subsidize business costs for businesses that misclassify. This bill balances the playing field in these areas for workers’ compensation.”
Author: Robert Elliott, J.D.
TD Calculator:
www.ReduceYourWorkersComp.com/transitional-duty-cost-calculator.php
WC 101: www.ReduceYourWorkersComp.com/workers_comp.php
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Do not use this information without independent verification.
All state laws vary.
©2008 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@WorkersCompKit.com
Hire Very Carefully
Here’s the Problem…by Attorney Ted Ronca who has dealt with situations where employers do not want certain employees returning to their workforce.
A sociopathic worker is hired. You know — the “pain in the neck” who thrives on attention, even if it’s negative. Demands more and more when you try to help. Files every imaginable kind of claim if you try to ignore them and file workers’ compensation, UI and discrimination claims if you fire them.
They hire attorneys and are angry and blame everyone. When shown all the ways to limit damage and restore earnings they walk out complaining. They attorney shop until they find an enabling attorney. A lawyer who can stand this type of worker will have a significantly larger client base.
What can the employer do?
The cheapest solution is to learn better interviewing and hiring practices. Don’t hire next year’s claims. But, beyond that estimate the cost of keeping this person in the workplace. Yes, tough to evaluate, but the worst damage comes when they cause one of your best employees to quit. Good employees like it when the “pain in the neck” leaves for whatever reason. (workersxzcompxzkit)
The moral is: “You hire ‘em. You pay.” Workers’ compensation is just one of the downsides. Others will cost far more if you keep them. Document! Document! Document!
Author: Attorney Theodore Ronca is a practicing lawyer from Aquebogue, NY. He is a frequent writer and speaker, and has represented employers in the areas of workers’ compensation, Social Security disability, employee disability plans and subrogation for over 30 years. Attorney Ronca can be reached at 631-722-2100.
Follow Us On Twitter: www.twitter.com/WorkersCompKit
WC 101: www.ReduceYourWorkersComp.com/workers_comp.php
Do not use this information without independent verification.
All state laws vary.
©2008 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@WorkersCompKit.com
Posted in
Assessment & Diagnostics, Medical Issues, Return to Work and Transitional Duty |
