The Maxco Story – Part I There are very specific steps a division can and must take to cut workers' compensation costs. This is the story of MaxCo, Inc.*, a multi-divisional, Fortune 500 conglomerate, who successfully took these steps to significantly cut WC costs. (*Name changed for privacy.) Steps in a Well-Designed Plan
- Decide to implement a plan and bring on board all members in every division of the corporation.
- Hire Qualified Employees
- Manage the Claims – Whose in Charge?
- Quick Post-Injury Response
- Early Return-to-Work
- Proper Documentation
- Coordinate Medical Care
- Medical Provider Cost Containment
- Insurance Division Relations
- File Audits
- Investigation and Surveillance
- Safety Management
- Performance Goals
- Workers' Compensation "Helpline"
Introduction: Deciding to Implement a Plan: MaxCo's program to control its workers' compensation costs is one of the most comprehensive in the industry, being a practical, "how-to" program any corporation can implement. The structure of the program is a radical departure from the old tendency to turn over all claims to the insurance division for handling. At MaxCo, the divisions were taught how to manage their claims internally, returning the employees to work (workersxzcompxzkit) as soon as they were medically able to do so. Each division took charge of each injury so the injured employee goes through an orderly procedure from the time of injury until the time of returning to work. The "old policy" of "no light-duty" jobs is replaced by an active effort to provide modified-duty (transitional duty) jobs for injured workers on a temporary basis until they return to their original jobs at 100 percent capacity. In the program, each division began to actively manage its workers' compensation claims. The Injury Management Program was introduced during a series of day-long seminars around the country. The Injury Management Program Manual, the "tool kit" for the program, consists of explanatory material, form letters, sample procedures and policies. Each division has the tools needed to actively manage workers' compensation claims and control associated costs. Author: Robert Elliott, J.D. 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@WorkersCompKit.com
