Companies with guaranteed cost programs should review their experience modification worksheets to make sure claims are coded correctly. While this doesn’t affect companies with loss-rating plans, it does affect those companies with “mod-rated” plans. Think of it as “loss rated” vs. “mod-rated.”
For example, If a medical-only claim is incorrectly coded as a lost time claim, you will pay more than necessary. In some states medical-only claims are discounted 70%. So for every miscoded claim, that’s inflates your experience rating.
If you are in certain industries, for example construction, you may be precluded from even bidding on a project if your experience modification factor is higher than the norm. So, have a professional review this. Check with your agent or broker to find out if your experience modification affects the cost of your insurance. Some brokers do this, others don’t. If your broker falls into the later category, be proactive and hire a professional to do this.
Check our Resources Tab for a company to work with: http://www.reduceyourworkerscomp.com/resources.php
For more cost savings tips go to WC Cost Reduction Tips.
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.
