Eight Focus Areas for Best Practice Cost Containment of Workers Compensation

To maximize your company’s potential for workers’ comp cost containment we recommend focusing on these eight areas.

But, you say, this is just another checklist. Yes, it is. However, checklists are very useful tools to help those involved in the complex process of managing workers’ compensation claims, implementing best practices, and controlling costs, to very quickly triage those areas where they need to improve. Workers’ Comp Kit Blog, in over 1,300 blogs, provides suggestions and answers on how to implement all of the areas listed here, as faithful readers know.

1. Management Commitment and Resources

Is there a lack of awareness of resources such as books, conferences?
Do you need additional personnel e.g., workers’ comp coordinator(s) for large multi-division company?
Is your cost allocation immediate and cost sensitive?

2. Work Closely with Third-Party Administrator(s)

Proactively use account instructions.
Examine the TPA's internal quality control; ask – do they give “grades” and bonuses to adjusters for superior performance.

3. Intake Procedures are Key

Be sure you have tight post injury response procedures.
Be involved – don’t leave this to your insurance company or TPA.
Immediate reporting is very important.

4. Nurse Triage

Start management at tiime of injury. Have the triage nurse identify type of treatment that is needed.
Coordinate medical care early.

5. High Standards for Medical Provider Quality

Rank your medical providers.
Lower duration means better outcomes, less litigation, and lower medical costs! Ask for specialized networks with better outcomes.

6. Peer-to-Peer Physicians

Get your medical doctors to discuss each claim with the treating doctor.
Get pharmacy benefits management proactively when MDs at TPA review the claim while it is just beginning.

7. Return-to-Work Policies: Clear and Organized

Start transitional duty immediately after the incident; inform the injured employee of your return-to-work policies.
Let injured employee know you expect a return to work as soon as the worker is medically able. (workersxzcompxzkit)
Consider off-site RTW programs such as charitable, home-based, cross-divisional, and alternate employers.

8. Improved Communication is a Simple Way to Improve WC Programs

Target communication to your employees.
Target additional communication specific to supervisors, management, TPAs, and medical providers.
Communicate, communicate, communite
First day phone calls, weekly meetings (that's er …. every week)…

Author Rebecca Shafer, Consultant, President, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers’ Compensation costs, including airlines, healthcare, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. Contact her: RShafer@ReduceYourWorkersComp.com or 860-553-6604.

FREE WC IQ Test: http://www.workerscompkit.com/intro/
WC Books: http://www.reduceyourworkerscomp.com/workers-comp-books-manuals.php
WC Calculator: http://www.reduceyourworkerscomp.com/calculator.php
TD Calculator: http://www.reduceyourworkerscomp.com/transitional-duty-cost-calculator.php

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