What methods can be used to assess a company's workers' compensation process? There are many methods to assess a program, however, the automated approach provides the most uniform diagnostic across multiple business units. 1- automated assessments 2- self-assessment questionnaires 3- physical review of current processes 4- data analysis – data tells whether a company's costs are high, but does not tell why the costs are high 5- claim file reviews and medical process reviews in a file review 6- telephone interviews of all parties involved in process 7- on-site interviews/focus groups Try the WC Cost Calculator to show the REAL COST of work comp. Look at WC 101 for the basics about workers comp. Workers' Comp Kit® is a web-based online Assessment, Benchmarking and Cost Containment system for employers. It provides all the materials needed to reduce your costs significantly in 85% less time than if you designed a program from scratch. Do not use this information without independent verification. All state laws are different. Consult with your corporate legal counsel before implementing any cost containment programs. ©2008 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ReduceYourWorkersComp.com
Reducing workers comp costs is a comprehensive process however, the same elements tend to drive workers' comp costs from company to company. What areas should be reviewed? 1- management commitment, resources and awareness 2- employee communication 3- the first 24 hours after a claim (post-injury process) 4- insurance company integration and knowledge of vendor resources including account instructions and file reviews 5- return to work and transitional duty 6- use of medical personnel, medical networks and medical care coordination 7-experience modification reviews 8-controlling fraud and abuse 9-supervisor role and training 10-appropriate use of data including allocation systems, using enough (but nottoo much) data to convey the problems to management 11-hiring qualified workers Try the WC Cost Calculator to show the REAL COST of work comp. Look at WC 101 for the basics about workers comp. Workers' Comp Kit® is a web-based online Assessment, Benchmarking and Cost Containment system for employers. It provides all the materials needed to reduce your costs significantly in 85% less time than if you designed a program from scratch. Do not use this information without independent verification. All state laws are different. Consult with your corporate legal counsel before implementing any cost containment programs. ©2008 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ReduceYourWorkersComp.com
Robert Elliott discusses How To Assess Workers Compensation Costs. There are Five Considerations … A solid workers' compensation cost control program requires an employer to first identify the key cost drivers; i.e, those company-specific factors causing workers to stay out of work too long. Many companies take a hit or miss approach resulting in misidentifying the cause of their workers' comp costs. They start by looking at what their vendors are doing, rather than at their own internal company practices. Employers need to follow a systematic method to diagnose the key real-cost drivers within the company, based on a best practice approach to post-loss (not pre-loss) cost containment. Consider these five items before writing your assessment: 1: What can a risk manager and/or senior management learn from an assessment? 2: What methods can be used to assess a company's workers' compensation process? 3: What areas should be reviewed? 4: Who should do the assessment and what are the benefits of each? 5: What should a company do AFTER the assessment – what is the next step in reducing workers' compensation costs? Some companies wait until they are in serious trouble before taking action. They think of workers' compensation as a cost of doing business and do not realize there is anything they can do to control the costs or they wait until they have the perfect system in place before beginning. Often the process of doing the assessment is the start of the process of change. Try the WC Cost Calculator to show the REAL COST of work comp. Look at WC 101 for the basics about workers comp. Workers' Comp Kit® is a web-based online Assessment, Benchmarking and Cost Containment system for employers. It provides all the materials needed to reduce your costs significantly in 85% less time than if you designed a program from scratch. Do not use this information without independent verification. All state laws are different. Consult with your corporate legal counsel before implementing any cost containment programs. ©2008 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ReduceYourWorkersComp.com
When improving your workers' compensation programs, it's important to prioritize the recommendations your consultant provides. Start with an Implementation Timetable (click on Action Plan to enlarge). Put recommendations, dates for completion, person responsible for each recommendation. In Workers Comp Kit, here is how we prioritize recommendations. Modules are broken down by Critical, Needs Improvement, and Good indicating which recommendations need to be done first. Remember, in most cases ALL of the recommendations DO need to be completed; just because you are doing well, don't ignore the modules you are doing the best in because those give you the chance to become best-in-class. But start with recommendations according to the following categories: 1. Critical Modules should be done first. 2. Recommendation you can do at no cost. 3. Recommendations that can be done quickly and easily. 
Try the WC Cost Calculator to show the REAL COST of work comp. Look at WC 101 for the basics about workers comp. Workers' Comp Kit® is a web-based online Assessment, Benchmarking and Cost Containment system for employers. It provides all the materials needed to reduce your costs significantly in 85% less time than if you designed a program from scratch. Do not use this information without independent verification. All state laws are different. Consult with your corporate legal counsel before implementing any cost containment programs. ©2008 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ReduceYourWorkersComp.com
Absence Management Facilitators (AFM) or Workers Compensation Management (WCM) Facilitators, are two common titles for those who manager integrated disability management programs. Companies with Integrated Disability Programs have Absence Managers, others have Workers Compensation Managers/Coordinators.
To establish acceptable and unacceptable standards of absence, employers look to absence management vendors or facilitators. Often the Workers’ Compensation Manager or Coordinator can assume this role. The AMFs help employers establish baseline measures, identify goals and develop action plans for goal attainment. They must have a “coaching” ability to bring people and “sides” together.
Both employers and employees typically perceive independent vendors as impartial to either side. Thus, the potential for management and employee discord is defused because the facilitator is the focal point in transforming employee value system. Internal staff can also be impartial. This is something that must be considered in the screening process.
To kick off the program, an absence management facilitator typically focuses on three activities:
1- Arranges initial briefings with supervisors and managers. Use open-ended questions to elicit discuss.
2- Conducts initial assessments of the organization’s structure and hierarchy, locations, and absence patterns.
3- Develops a system of rewards, penalties and communication techniques, all designed to deter employee absences by creating a corporate culture making chronic absenteeism socially unacceptable. Continued in next blog …
Try the WC Cost Calculator to show the REAL COST of work comp.
Look at WC 101 for the basics about workers comp.
Workers’ Comp Kit® is a web-based online Assessment, Benchmarking and Cost Containment system for employers. It provides all the materials needed to reduce your costs significantly in 85% less time than if you designed a program from scratch.
Do not use this information without independent verification. All state laws are different. Consult with your corporate legal counsel before implementing any cost containment programs.
©2008 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ReduceYourWorkersComp.com
The insurance market is going to become more costly according to recent articles by Business Insurance and Advisen. Start the New Year right, and do 4 simple things to reduce your workers’ comp costs:
1- Count your OOW (out of work) Employees. Know how many employees that are out of work TODAY, and make your goal to reduce that number by 30% within 6 months. At any given time, you should know the “OOW count” and be ready to tell your CEO, CFO and other management that figure.
2- Know the Cost of the OOW Count. If you have 25 employees out of work, and the total incurred cost of those claims are $67,000, your company has to sell $1,340,000 if your profit margin is 5% to replace the cost of those claims on the bottom line. Every member of management will understand THAT figure. You can calculate your own Cost of Workers’ Comp at Workers Comp Kit Calculator.
3- Use a Work Ability Form when the employee takes the form to the doctor ON THE FIRST VISIT. Make sure your form has check boxes to indicate physical restrictions at work and at home.
4- Have every employee sign an Employee Acknowledgment Form stating that they have been informed of their responsibilities in your workers’ comp program. This form should be included in your new hire packets, as well as, distributed to all existing employees.
There are many ways to reduce workers comp costs. You can do it yourself or get hands on help from Amaxx. If your company is just beginning, the best way to begin is to find out your National Workers Compensation Score (NWCS)â„¢. Find out more.
Look at WC 101 for the basics about workers comp.
Workers’ Comp Kit® is a web-based online Assessment, Benchmarking and Cost Containment system for employers. It provides all the materials needed to reduce your costs significantly in 85% less time than if you designed a program from scratch.
Do not use this information without independent verification. All state laws are different. Consult with your corporate legal counsel before implementing any cost containment programs.
©2008 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ReduceYourWorkersComp.com
Companies frequently misdiagnose the cause of their high workers comp costs. As a result, until the key cost drivers are determined, any changes that are made could increase a company's problems. For example, one company I worked with thought they were being charged too much for nurse case management and were preparing to tell the TPA to stop using the service. Prior to that change being implemented, I invited the risk manager to tour a TPA's claim facility. Our tour of the facility gave her (and me) an appreciation for how well the claims were being handled.
During the tour, she saw first hand that the nurses were totally integrated into the claim handling operation, and were in an excellent position to challenge compensability on questionable claims.
During our tour, I learned the company did not have a professional safety manager. I felt THAT was a larger problem than the cost of nurse case management on individual claims and brought the issue to the attention of the producer and account coordinator. As a result, the company began recruiting for an experienced safety professional, and coordinated loss control support for the new safety director.
Note: Not every company needs a full-time safety professional, but many do. The company in this example had dozens of retail locations in many states.
For the 7 Biggest Mistakes Companies Make. Learn more about the assessment process. For more cost-saving tips go to WC Cost Reduction Tips. Show the REAL cost of workers' comp with the Real Cost Calculator. Do not use this information without independent verification. All state laws are different. Consult with your corporate legal counsel before implementing any cost containment programs. ©2008 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ReduceYourWorkersComp.com
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