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How To Demonstrate Financial Impact of Workers Comp


In Part One  of our look at ever-increasing workers' compensation costs, we looked at how costs are rising and the importance of having a risk manager obtain the support of senior management, employees and physicians to put in place a holistic program. The next step  is then how to get started on putting such a program in place, removing the fears management may have because the process itself is viewed as too difficult or expensive. In order to get the ball rolling, note that the financial impact of workers' comp can be viewed by using the http://www.ReduceYourWorkersComp.com/calculator.php  to demonstrate how much in EBITA (Earnings Before Interest, Taxes and Amortization) or sales it requires to replace the cost of workers' comp insurance losses for your company's bottom line. When it comes  to obtaining management backing, remember that you must demonstrate how the financial impact of workers' comp costs impact business operations and also how to rectify the problem. Be sure to do your research prior to going to management. To demonstrate  how workers' comp impacts the bottom line, compare the cost of workers' comp to a meaningful metric in your given industry.   1.  For example,  if you are in the hotel industry, compare your losses to the number of hotel rooms required to be sold to replace the cost of workers' comp losses on the bottom line. If you are part of the transportation industry, compare your losses to miles required to be paid for to replace the cost of these losses. Should you be in the entertainment industry, calculate the number of entrance fees needed to pay for the cost of workers' comp, etc. 2.  Or, if every  5th day goes to replace those sales, use a calendar and place a huge red "X" on every 5th calendar day to emphasize your point. 3.  Or, if the sales  of one of 10 company divisions go to paying for workers' comp, institute icons for all 10 divisions on a map and place a big red  "X" over the 10th division paying for workers' comp. 4.  Get with  your team to comprise a metric that will hit home with your management. 5.  Determine the  cost of an average claim, along with a large claim, and then convert these to the overall cost to replace that money on the bottom line. (workersxzcompxzkit) 6.   Do likewise  with your TOTAL INCURRED losses for one year and for all outstanding claims. Using this gross amount will put the total problem in proportion. Editor's Note:  Look for how to calculate the financial burden of having too many employees out of work in the next installment.

Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers' Compensation costs, including airlines, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: Robert_Elliott@ReduceYourWorkersComp.com or 860-786-8286.

Budding Author? Senior Writer?  Contact us at: Info@WorkersCompKit.com.

WC Calculator: www.reduceyourworkerscomp.com/calculator.php Follow Us On Twitter: www.twitter.com/WorkersCompKit A NEW Article: Return to Work in Unionized Companies

Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workman's comp issues.

©2009 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 WC 101, Workers Comp Kit |


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CALIFORNIA Are Injuries Sustained 130 Miles From Home En Route to Medical Visit Workers Comp


How Would You Decide: 

Here’s what Tom Robinson, J.D., writer for Lexis Nexis Workers Comp Law Center reports:  Is Injury Sustained During Doctor Visit 130 Miles from Home Workers Comp? 

Here’s What Happened
Esquivel, a correctional officer,  resided in San Diego and at the time her case arose, was being treated for work-related industrial injuries by medical providers located within eight miles of her home. For reasons unrelated to her need for that treatment, Esquivel drove about 130 miles to her mother’s home in Hesperia, in San Bernardino County. Esquivel suffered serious new injuries when she drove through a stop sign in Hesperia while en route from her mother’s home to the San Diego offices of the medical providers.  The workers’ compensation judge (WCJ) found that Esquivel’s motor vehicle accident injuries were a compensable consequence of her existing industrial injuries and awarded her temporary disability indemnity and additional medical benefits.  Upon reconsideration, the Workers’ Compensation Appeals Board (the Board) reversed the WCJ’s findings and award, finding that the accident occurred too remotely from Esquivel’s home and her destination to reasonably assign the risk of injury en route to the employer.  Esquivel appealed. 

Here’s What The Court Decided
In Esquivel v. Workers’ Comp. Appeals Bd. (Corrections Corp. of Am.),  2009 Cal. App. LEXIS 1664 (Oct. 13, 2009), the Court of Appeal of California (Fourth Appellate Dist., Div. 1) affirmed the Board’s decision.  The essential issue, said the appellate court, was whether there is a reasonable geographic limitation on an employer’s risk of incurring liability under the Act with respect to new injuries an employee suffers while en route to or from a medical appointment for examination or treatment of an existing industrial injury.  The court held that there was such a limitation and held that the employer bears this risk while the employee is traveling a reasonable distance, within a reasonable geographic area, to or from the medical appointment. As to what constitutes a “reasonable distance,” the court also held that such determinations must be made on a case-by-case basis considering all relevant circumstances.  The court indicated that the most serious problem with providing coverage in the case of the trip to the doctor’s office was that the employer lacked the opportunity to exercise any control over the trip.  (workersxzcompxzkit)  It was one thing to saddle the employer with the risk of additional injury when the injured worker traveled a reasonable distance to the medical provider and yet quite a different matter where, as here, Esquivel was driving some 130 miles.

See generally  Larson’s Workers’ Compensation Law, § 10.07.

Tom Robinson, J.D. is the primary upkeep writer for Larson’s Workers’ Compensation Law (LexisNexis) and Larson’s Workers’ Compensation, Desk Edition (LexisNexis). He is a contributing writer for California Compensation Cases (LexisNexis) and Benefits Review Board – Longshore Reporter(LexisNexis), and is a contributing author to New York Workers’ Compensation Handbook(LexisNexis). Robinson is an authority in the area of workers’ compensation and we are happy to have him as a Guest Contributor to Workers’ Comp Kit Blog. Tom can be reached at: compwriter@gmail.com.
http://law.lexisnexis.com/practiceareas/Workers-Compensation

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A NEW Article: Return to Work in Unionized Companies

Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workman’s comp issues.

©2009 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 Litigation Management |


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CONNECTICUT Chimp Mauls Woman In Private Home Is It Workers Comp Claim


 

Attorney Says Chimp Case Should be Treated Like a Workers' Comp Claim An attorney  representing the owner of a chimpanzee that mauled and blinded a Connecticut woman in February claims the attack is a work-related incident and said her family's case should be handled like a workers' compensation claim, according to The Associated Press. If the case  is viewed as a workers' comp claim, compensation would be severely limited and shield the chimp's owner from personal liability. The chimp  attacked the victim, a friend and employee of its owner, ripping off the woman's hands, nose, lips and eyelids. The victim remains in stable condition at the Cleveland Clinic in Ohio.  The victim's family filed a $50 million lawsuit against the chimp's owner, claiming she was negligent and reckless for not having the ability to control "a wild animal with violent propensities." According to  the chimp owner's attorney, the victim was working as an employee of his client's tow truck company at the time of the attack. He claims the chimp was an important part of the business, stating his image was on the wrecker, he appeared at the garage daily and he was present for numerous promotional events. The residence  where the attack took place is a business office of the company, according to the attorney, who states that the workplace should be subject to the provisions of the Connecticut workers' comp statutes. (workersxzcompxzkit) Under Connecticut  workers' comp regulations, the victim would have her medical bills paid for by the employer's insurance and would obtain partial wage replacement, but would be denied any money for pain and suffering that comprises a large portion of jury awards in civil cases.

Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers' Compensation costs, including airlines, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: Robert_Elliott@ReduceYourWorkersComp.com or 860-786-8286.

WC IQ Test: http://www.workerscompkit.com/intro/ WCBooks: http://www.reduceyourworkerscomp.com/workers-comp-books-manuals.php TD Calculator: www.ReduceYourWorkersComp.com/transitional-duty-cost-calculator.php Follow Us On Twitter: www.twitter.com/WorkersCompKit A NEW Article: Return to Work in Unionized Companies

Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workman's comp issues.

©2009 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 Litigation Management |


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Drug Free Workplace Myth: Addicted Workers Are Unemployed and Costs Are Falling


2009 Drug-Free Work Week 10/19-10/25, HI-LITES During Drug-Free Work Week, WCK Blog will present a fine article dispelling 10 common myths about substance addiction in the workplace.  Follow our blog from October 19th to October 25th to learn some important information and how to manage, as our authors say, "our nationa's #1 public health and economic workplace challenge." The latest data*  estimates  Workplace Substance Addiction annually costs US Employers $250 Billion, and substance related deaths are equal to a jumbo jet plane crash every day. This article dispels some key myths that help perpetuate what is now our nation's #1 public health and economic workplace challenge. *[SAMHSA, US Dept of Labor, US Bureau of Vital Statistics and Workers Comp Commission ] Myth:     Most Individuals addicted to alcohol and/or illicit drugs are unemployed. Reality:  More than 75% of substance addicted persons work [SAMHSA 2007]. The rate of substance addicted workers in the average workplace is about 13%. Employer Tip:  Search  SAMHSA.gov  for current substance abuse statistics and free information about prevention and treatment. Workplace addiction can be prevented with innovative best practices that save time, money and lives. Myth:     The financial consequences of workplace substance abuse are decreasing. Reality:  Employer expenses related to substance abuse are increasing and may exceed $250 Billion per year, based only on the following expenses: Workers' Compensation:  Substance abusers register 50% of all claims and 5X more claims than average. [National Council on Compensation Insurance] -  Health Benefits:  Abusers utilize 8X greater health benefits and spend >300% more on healthcare than peers. [US Department of Labor] -  Absenteeism:  Substance abusers account for 35% of all work absences and are 6X more truant than colleagues. [US Department of Labor] -  General:  Substance addicted employees are responsible for much higher rates of workplace turnover, theft, accidents, deaths and violence.  [Special Congressional Report on Alcohol and Health; US Department of Labor]  (workersxzcompxzkit) Employer Tip:  Implement Drug Free Workplace (DFW) programs featuring zero-tolerance, high integrity drug testing, measurable performance behaviors, and Lean principles to best and most quickly impact substance-related expenses. Authors: Bill White MSN and Katharine White MSN About the authors: K & B White are leadership entrepreneurs who co-founded DFW-Renaissance Inc. (www.dfw-r.com) and co-developed managerial science innovation DFW-R Lean CultureTM (to create/sustain highly engaged drug free workforces). Both are former hospital C-Suite executives with extensive drug treatment, leadership and behavioral health experience. Look for their upcoming headline article in DATIA Focus on DFW Culture Change and Employee Morale. They can be reached by email at billtwhite@cox.net and phone at 401-615-8775.

To review laws in your state on workplace drug policies and rules for testing employees see http://reduceyourworkerscomp.com//drug-testing-state-laws.php Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workman's comp issues. ©2009 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@WorkersCompKit.com

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Posted in Drug, Alcohol & Impairment Testing, Medical Issues |


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CALIFORNIA Walk Thru Plant Changes Classification Code from Admin to Manufacturing Worker


California Worker’s Classification Code Changed For Walking Through Plant

A recent review  by our company showed that a premium auditor in California reclassified a worker just for the fact that the employee had to walk through the plant to get to his workstation as an administrative assistant (class code 8810).

There is no  other path that the employee could have taken unless he crawled through an office window. The employee was reclassified as a manufacturing worker even though he never touches any of the equipment. (workersxzcompxzkit)

Should the employer  have to build a special covered walkway just for this employee?

Author James J. Moore,  AIC, MBA, ChFC, ARM  is a national Workers’ Compensation premium and reserve expert. He is the founder and principal of  J&L Risk Mgmt Consultants, Inc., a Workers’ Comp advisory company. http://www.cutcompcosts.com/www/blog.html.  Mr. Moore has allowed WCK Blog to reprint the above blog with minor alterations.  Thanks, Jim.

We are accepting articles on WC cost containment. Contact us at: Info@WorkersCompKit.com.

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A NEW Article: Return to Work in Unionized Companies

Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workman’s comp issues.

©2009 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 California Workers Comp |


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CANADA Workers Comp Fraud at Highest Level Garners Expense Report Changes


Workplace Safety and Insurance Board Head Cited for Expense Report Fraud

Allegations of  spending $140,000 of taxpayer monies to maintain a lavish lifestyle were made against the WSIB head by the Ontario legislature.  Additionally, according to the Canadian Broadcasting Corporation, the man allegedly went as far as to claim allowances for working extra days.

The man allegedly  reported on his expense sheet thousands of dollars related to limos and receiving a car. Other allegations include charging for meals where no meetings took place, and travel overseas to China, Australia, Hong Kong and other countries.

According to the  Canadian Labour Minister, the expenses were looked at and deemed acceptable under the policy in place at the time.

The Labour Minister  added new policies are now in place, noting the new policies were put into place in August 2009, following embarrassing revelations due to expenses claimed by consultants and executives working for eHealth Ontario and the OLG. 

Employees at  the 22 largest boards and agencies will reportedly be required to undergo mandatory online expense claim training. (workersxzcompxzkit)

Province officials  added the expenses of senior management, cabinet ministers, political staff and senior executives at Ontario’s 22 largest agencies will be posted online no later than April 1, 2010.

Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers’ Compensation costs, including airlines, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: Robert_Elliott@ReduceYourWorkersComp.com or 860-786-8286.

 Budding writer?  We accept articles on WC cost containment. Contact us at: Info@WorkersCompKit.com.

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A NEW Article: Return to Work in Unionized Companies

Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workman’s comp issues.

©2009 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 Canada Workers Comp, Fraud and Abuse, Litigation Management |


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CONN Attorney Suggests Injury to Woman Mauled by Chimp Should Be Workers Compensation Claim


Most people do not WANT a claim to be "work-related" however, an attorney representing the owner of a chimpanzee that mauled and blinded a Connecticut woman in February claims the attack is a work-related incident and said her family's case should be handled like a workers compensation claim, according to The Associated Press. The reason for this is that the chimp owner wants to take advantage of the workers compensation "bar," this is part of the statute prohibits (bars) an employee from directly suing an employer.

 

If the case is viewed as a workers comp claim, compensation would be severely limited and shield the chimp's owner from personal liability. If this argument prevails, (I predict it won't.) the workers compensation benefits would be the exclusive remedy for the injury. The chimp attacked the victim, a friend and employee of its owner, ripping off the woman's hands, nose, lips and eyelids. The victim remains in stable condition at the Cleveland Clinic in Ohio. The victim's family filed a $50 million lawsuit against the chimp's owner, claiming she was negligent and reckless for not having the ability to control "a wild animal with violent propensities."

 

According to the chimp owner's attorney, the victim was working as an employee of his client's tow truck company at the time of the attack. He claims that the chimp was an important part of the business, stating his image was on the wrecker, he appeared at the garage daily and he was present for numerous promotional events. The residence where the attack took place is a business office of the company, according to the attorney, who states that the workplace should be subject to the provisions of the Connecticut workers' comp statutes. Under Connecticut workers' comp regulations, the victim would have her medical bills paid for by the employer's insurance and would obtain partial wage replacement, but would be denied any money for pain and suffering that comprises a large portion of jury awards in civil cases.

 

Author: Rebecca Shafer, J.D. consults for mid-market and national accounts focusing on project management, risk management assessments, data review, benchmarking, and development of Workers' Compensation and Injury Management Programs. Projects focus on development of training and education programs, document design, evaluation and integration of insurance claims administration and TPA services. Contact her at: RShaferB@ReduceYourWorkersComp.com Budding writer? We are accepting articles. Contact us at: Info@WorkersCompKit.com.

Visit Our Websites: Reduce Your Workers Comp: www.ReduceYourWorkersComp.com/ Workers Comp Kit: www:workerscompkit.com/ WC Calculator: www.reduceyourworkerscomp.com/calculator.php
 
 
 

Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workman’s comp issues. ©2009 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 Exclusivity Provision |


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Workers’ Comp Costs Can Be Controlled By Getting Back to Basics: Show How Work Compensation Impacts The Bottom Line


Using Cost-Control Calculators to Reduce Workers' Comp Costs In Part One of our look at ever-increasing workers' compensation costs, we looked at how costs are rising and the importance of having a risk manager obtain the support of senior management, employees and physicians to put in place a holistic program. The next step is then how to get started on putting such a program in place, removing the fears management may have because the process itself is viewed as too difficult or expensive. In order to get the ball rolling, note that the financial impact of workers' comp can be viewed by using the Workers' Comp Calculator    http://www.ReduceYourWorkersComp.com/calculator.php   to demonstrate how much in EBITA (Earnings Before Interest, Taxes and Amortization) or sales it requires to replace the cost of workers' comp insurance losses for your company's bottom line. When it comes to obtaining management backing, remember that you must demonstrate how the financial impact of workers' comp costs impact business operations and also how to rectify the problem. Be sure to do your research prior to going to management. To demonstrate how workers' comp impacts the bottom line, compare the cost of workers' comp to a meaningful metric in your given industry, using the follow suggestions:  1-For example, if you are in the hotel industry, compare your losses to the number of hotel rooms required to be sold to replace the cost of workers' comp losses on the bottom line. If you are part of the transportation industry, compare your losses to miles required to be paid for to replace the cost of these losses. Should you be in the entertainment industry, calculate the number of entrance fees needed to pay for the cost of workers' comp, etc. 2- Or, if every 5th day goes to replace those sales, use a calendar and place a huge red "X" on every 5th calendar day to emphasize your point. 3- Or, if the sales of one of 10 company divisions go to paying for workers' comp, institute icons for all 10 divisions on a map and place a big red "X" over the 10th division paying for workers' comp. 4- Get with your team to comprise a metric that will hit home with your management. 5- Determine the cost of an average claim, along with a large claim, and then convert these to the overall cost to replace that money on the bottom line.   6- Do likewise with your TOTAL INCURRED losses for one year and for all outstanding claims. Using this gross amount will put the total problem in proportion. Editor's Note: Look for how to calculate the financial burden of having too many employees out of work in the next installment. Author: Rebecca Shafer, J.D. consults for mid-market and national accounts focusing on project management, risk management assessments, data review, benchmarking, and development of Workers' Compensation and Injury Management Programs. Projects focus on development of training and education programs, document design, evaluation and integration of insurance claims administration and TPA services. Contact her are: RShaferB@ReduceYourWorkersComp.com We are accepting articles. Contact us at: Info@WorkersCompKit.com.

Visit Our Websites: Reduce Your Workers Comp: www.ReduceYourWorkersComp.com/ Workers Comp Kit: www:workerscompkit.com/ WC Calculator: www.reduceyourworkerscomp.com/calculator.php
 
 

Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workman’s comp issues. ©2009 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 Benchmarking & FTE & Operational Comparison, Implementation and Rolling Out Your Program, Management Commitment |


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Six Top Reasons to Do a Best Practice Assessment of Your Workers Comp Program


Why Begin with the Assessement? Here are the the last 6 Keys supporting taking the WC assessment. 6.  Return to Work and Transitional Duty When employees  are injured on the job, your goal is to  return them to work as soon as they are medically able.  Transitional duty (TD) enables injured workers to remain "on-the-job" while recovering from a work-related injury.  You must have a transitional duty policy in place. Transitional duty  is important to both employees and management as a tool to avoid the negative consequences occurring when employees are out of work for a long time. For employees, returning to work allows them to maintain important job skills and be part of the daily work routine.  They avoid becoming "psychologically disemployed" and distanced from their work environment. Employers experience  lower work comp costs by keeping the services and skills of trained employees (versus paying for temporary workers – always costing more), improving employee retention and avoiding costly lawsuits.  You are also able to monitor employee recovery and prevent re-injury.  There may also be ADA requirements to try to accomodate an injured employee with medical restrictions which affect his major life activities. 7.  Medical Care Coordination How medical care  is handled during recovery is another determinate of cost savings.  Examine your medical cost containment and care coordination practices to discover the best ways for employers to insinuate themselves into this process.  Too many employers believe the medical aspects of workers' comp management are outside their realm of control.  The assessment shows the areas where you do have control, and helps you examine ways to exert this control. 8.  Medical Cost Containment Often employers  think medical cost containment is an area of which they have little control.  Controlling medical costs is achievable by reducing the number of treatment and/or reducing the cost of treatments.  Think about engaging the services of a third-party administrator (TPA) to administer your claims.  Although there will be fees, the benefits outweigh the investment. The key to using  a cost containment service is to thoroughly vet them and know exactly what is being offered and how they match your needs.  Organize a vendor day to learn about your claims handler's services and explore services companies in your area to supplement what your adjuster offers. 9.  Fraud, Abuse & Malingering The main point  in controlling fraud is to jump on it immediatelyDON'T WAIT.  While it's true most injury claims are legitimate, it's the tiny few fraudulent claims that will cost you the most in time and money. Investigations are  a useful tool to control workers' compensation costs when you need to determine the legitimacy of a claim. Be prepared to document and substantiate any suspicious claim from simple observation to videotaping activities. Communicate to your  employees your  "anti-fraud" policy, to make sure all employees know EVERY suspicious claim will be investigated and if found legitimate, prosecuted.  You know what is said about an "ounce of prevention."   So, when it comes to controlling fraud don't be the 200 pound gorilla in the room.  10. Training Initiatives Training is key  to turning employee cultures around and integrating workers' comp management into the culture so it is practiced along with the other business practices employees engage in.  Use the assessment to help you examine training initiatives you can use to augment implementation. Trained employees are more likely to respond appropriately in the event of a work-related incident, thus avoiding unwanted, unnecessary costs and bringing incidents to resolution quickly and efficiently.  (workersxzcompxzkit) Sounds overwhelming?!?   Maybe — but taking the assessment will help you pinpoint what areas you have in place, and what areas require implementation.  In this way, you don't start from scratch, because the assessment shows where you are on the journey to best practices — your ultimate goal.  From there, you can formulate the recommendations into an action plan, a timeline to success, and,  I predict, much  lower costs associated with workers' compensation.  Take the Assessment – It's Worth It! Author:  Rebecca Shafer, J.D.  consults for mid-market and national accounts focusing on project management, risk management assessments, data review, benchmarking, and development of Workers' Compensation and Injury Management Programs. Projects focus on development of training and education programs, document design, evaluation and integration of insurance claims administration and TPA services.  Contact her are:   RShaferB@ReduceYourWorkersComp.com We are accepting short articles* (300-800 words). Contact us at: Info@WorkersCompKit.com.

Visit Our Websites: Reduce Your Workers Comp: www.ReduceYourWorkersComp.com/ Workers Comp Kit: www:workerscompkit.com/ WC Calculator: www.reduceyourworkerscomp.com/calculator.php
 
 

Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workman’s comp issues. ©2009 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 ADA (Americans with Disabilities Act), Assessment & Diagnostics, Implementation and Rolling Out Your Program, WC 101, Workers Comp Kit |


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Assess Five Key Issues In Your Workers Compensation Program for Cost Reduction


Why Begin with the Assessment Workers' compensation  is a multi faceted issue.  Often there is no "one thing" driving your costs upward, but a confluence of issues, a perfect storm, if you will, resulting in hemorrhaging workers' comp costs. People often don't  know what they don't know.  Much like going to a doctor's office for a physical, a diagnosis isn't made until all the tests, x-rays and specimens are taken.  Then and only then can the physician come up with a complete picture of the patient's health and identify key issues causing distress. A workers' comp  assessment does the same thing.  One day I sat down and captured the key areas I've seen come into play in virtually every workers' compensation management project.  Once you take this assessment, you can see it isn't just one driver sending your costs spiraling, rather it's several factors, acting together, causing costs to spiral. Over the past  twenty years, I've identified ten key areas impacting workers' comp costs.  My observations are  based on hundreds of client projects I've assessed and resolved with succinct recommendations designed to build an action plan.    Ten years ago,  we conducted client assessments on-site for every site and the mere experience of assessing took over six months to a year.  Often the project fixated on the assessment and it became very difficult to move the project into recommendations and implementation. The WorkersCompKit(R)  assessment can be completed in an afternoon and yield recommendations immediately to move the project from concept to action.  The assessment is not only quick, but also comprehensive —  touching on topics raging from management commitment to programmatic aspects such as post injury response, return to work, communication and training.  The assessment helps you to identify aspects of issues like claims handling that perhaps you never thought of before. Let's begin with the first 5 of 10 key assessment areas. Assessment Keys 1 to 5 1.  Management Commitment The assessment helps  you determine the level of management commitment.  How involved is your management in day to day operations?  How cognizant are they are workers' compensation issues?  Are there consequences for divisions having poor performance?  2.  Insurance Company and Claims Administration Controls Claims handling  can be overwhelming, but if you start with a phone call to your handler, you have taken the first step to gaining control in this area.  Make it a point to meet regularly with your claims handler to review open claims, to document activities to date, and to plan strategies going forward. 3.  Performance Goals Since workers'  comp is measured in dollars and cents, performance goals should be couched in measurable statistical goals, so you can document progress at every step of the way. 4.  Post Injury Response It is critical  to have a solid post injury response procedure in place so within minutes of a work-related injury occurring, all parties know their roles and responsibilities to resolving the incident.  Use the assessment to determine how well you are prepared to respond to injuries.  5.  Communication Communication must  be intentional not incidental.  Use the assessment tie down the lines of communication. Do you have a workers' comp management brochure or a laminated card that employees can put on their lanyards along with their badges.  Have you determine how well the communication programs you have in place are working.  How to communicate with injured employees.  Do you make every effort to stay in touch, keep the lines of communication open.  Do you send a get well card, and call them every week?  You should make sure all employees know transitional modified duty is expected as part of their recovery process.  The assessment will tell you how far in line your practices are and identify specific areas where you need to improve. Next:  Assessment Keys 6 to 10 Author:  Rebecca Shafer, J.D.  consults for mid-market and national accounts focusing on project management, risk management assessments, data review, benchmarking, and development of Workers' Compensation and Injury Management Programs. Projects focus on development of training and education programs, document design, evaluation and integration of insurance claims administration and TPA services.  Contact her are:   RShaferB@ReduceYourWorkersComp.com We are accepting short articles* (300-800 words). Contact us at: Info@WorkersCompKit.com.

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