One thing you learn quickly in today’s highly competitive business environment is never rest on your laurels. The same holds true for workers’ compensation results. Imagine this scenario: Your claim management program has finally gotten traction, and frequency (claim counts) and severity (claim costs) are trending downward. Lost workdays have also decreased. Outcomes are improving, and you know executive management is going to be pleased with these results. You report the news to executive management, and they give you a big pat on the back for a job well done, and then they instruct you to set new, “stretch” claim frequency and severity reduction goals. Welcome to the new “top line/bottom line”-centric world! To meet the goals and set expectations you have to look beyond your internal team and take a broader view of your service providers. Your claim administrator is not the only service provider who can help improve your outcomes. What about your broker? Are you exploring, and then effectively using, the brokerage services available to you? If not, you may be missing out on services and resources that can help you drive better outcomes. Many brokers offer the following services and resources, and they can serve as an extension of your staff where you need help the most. 1. Claim Services a. Technical experts to assist on complex, high-dollar claims b. Claim audit and file review protocols, automated programs and assistance c. Recommendations on how to develop the most effective claim administrator account handling instructions that facilitate success, rather than impede it d. Assistance with claim administrator performance agreements and service contracts e. Guidance on claim administrator service delivery model options 2. Jurisdictional legislation, case law and reform experts a. In addition to providing you with information, interpret what it means to your organization, and if appropriate, how to optimize cost savings related to state reforms 3. Return-to-Work programs a. Ideas on how to develop an effective program, how to implement it and how to measure results b. Consulting-level expertise may be available 4. Loss control/safety a. Claims analysis: A deep dive into why accidents are happening, to whom, where, when, how, and ultimately, how to prevent them b. Safety program assessment, design, implementation, training, communication and monitoring c. Industrial hygiene and OSHA expertise 5. Workers’ Compensation cost allocation models a. Ideas on how to charge claim costs back quickly, consistently and equitably, driving awareness and accountability within your business units, divisions and locations 6. Service Provider marketing, assessment and selection a. Assistance with Request for Proposals (RFPs), automated RFP response collection and assessment, selection of finalists, interviews and site visits, reference checks, negotiations and program implementation. Brokers work with a variety of claim administration, medical management and risk management information system (RMIS) providers, and they know which of them consistently finishes on top in terms of outcomes and quality. 7. Benchmarking and customized reports a. Comparison of your outcomes to your industry peers (by Standard Industrial Classification Code (SIC) or North American Industry Classification System (NAICS) b. Customized reports to help you proactively identify and address claim trends 8. Risk financing feasibility studies a. Should you consider qualified self-insurance, higher retentions, self-administration or a captive to reduce the cost of your workers’ compensation program?� b. What option(s) will give you the greatest control over how your claims are handled? 9. Research, reference materials a. Brokers typically have extensive libraries of reference materials and often publish white papers based on research they have conducted. Information is power, so make sure to avail yourself of these resources. Knowing that you have a variety of resources upon which you can draw makes the challenge a little less daunting. And, by drawing on the experts, you will develop a state-of-the-art program that will drive progressively improving outcomes. It’s a win-win! Another article about broker selection: http://reduceyourworkerscomp.com//choose-insurance-broker-wisely.php More FREE TOOLS: WC Calculator: www.reduceyourworkerscomp.com/calculator.php WC 101: www.ReduceYourWorkersComp.com/workers_comp.php Follow Us On Twitter: www.twitter.com/WorkersCompKit View the Entire Blog: https://blog.reduceyourworkerscomp.com/
Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers’ comp issues.
