MYTH: The best way to reduce workers' compensation costs is to change insurance companies or TPAs. REALITY: Wrong! The best way to reduce workers compensation costs is to build a better relationship with your current claims administrator. The major cause of discontent between carriers and the insureds is lack of communication which causes a perception that something is being done improperly. For example, in several situations a company believed nurse case management was too expensive; however, upon audit by our medical advisor, the nurse case management service should be used MORE, HOWEVER should be brought in earlier. It wasn't effective when it was used (thus seemed expensive and wasteful) because it was used too late in the process. A couple ideas of HOW to build a better relationship: 1- Start to build a better relationship by becoming more informed about the services your claims administrator offers. Hold a Vendor Day, and invite your TPA in with every one of their services – leave none out. Ask for samples of reports and deliverables so you can understand the product and will know when to request services. Have them bring brochures prior to Vendor Day, and read the brochures so you can ask knowledgeable questions during about the services. 2- Visit one or two claims offices, sit chair-side and observe the process. Learn the categories of desks at your carrier, for example, are there 4 levels of adjusters or 5? Do adjusters have backup and clerical support to get medical files or close files? Sit at the intake desk, then join the lost time and medical adjusters for a few minutes at their desks. Ask to see what happens to medical bills when they enter the system until the time they are paid and filed. This will give you a better understanding of how you can interact more effectively, what information adjusters need from you and what information you can provide about your workplace and employees. 3- Finally, invite your adjusters to visit your workplace, so they know what your company does, the types of jobs and skills required of the employees. They can then visualize exactly how an injury occurred easier than if they'd never been to your work place.They can see the possible transitional duty tasks, and perhaps suggest a few more. They can even have coffee in the lunch room and be introduced to a few employees who come in. Make them feel like part of the team. Try working out the problems before you change insurance companies or claims administrators. For more cost-saving tips go to WC Cost Reduction Tips. Show the REAL cost of workers' comp with the Real Cost Calculator. 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 I[email protected]