High deductible programs For larger employers, tne of the most popular insurance arrangements is very conducive to allowing companies to implement a workers' compensation cost containment program.
A high deductible program is almost like being self-insured in that it allows the company a lot of control, use of it's cash and also provides the benefit of using a licensed insurance company.
In a high deductible program the insurance company issues coverage over the deductible. Many companies have $500,000 deductible. This means on every claim they pay the first $500,000 of the loss with the insurance company paying only the amount in excess of the $500,000. The insurance company provides the claims handling and (workersxzcompxzkit) sometimes loss control for a fee. The insurance company may require a loss fund to be established or may require a letter of credit.
In a high deductible program the insured company can select counsel, decide whether a claim will be settled or not, and can normally make all other decisions with regard to how their claims are handled. Having claims settled without your authority is frustrating, but once you learn the ropes you will know to include these items in your account instructions, and negotiate for the levels of authority that suit your needs.
FREE tools to try:
WC Calculator: www.reduceyourworkerscomp.com/calculator.php
TD Calculator: www.ReduceYourWorkersComp.com/transitional-duty-cost-calculator.php
WC 101: www.ReduceYourWorkersComp.com/workers_comp.php
Do not use this information without independent verification. All state laws vary.
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