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@WorkersCompKit.com
