Saving DOLLARS by Integrating Workers Comp with Non-Occupational Treatment

According to a recent study posted on workforce.com from the University of California, Berkeley, integrating workers’ compensation medical benefits and non-occupational medical treatment under a “24-hour care” system could assist in paying for a “large fraction” of universal health care coverage.

Integrating occupational and non-occupational treatment would reportedly lead to savings of $490 billion to $560 billion during the first decade, according to the report, “Comparing the Costs of Delivering Medical Benefits Under Group Health and Workers’ Compensation-Could Integration Pay for Cover the Working Uninsured?”

The report notes “Savings would result from the much greater efficiency with which health insurance delivers care compared to workers’ compensation insurance.” Researchers said that “Only 12% to 14% of health insurance premiums go toward administration and profit.”

Researchers also claimed, “Workers’ compensation turns this ratio on its head, spending the majority (50%-60%) of premiums on these same overhead costs. Consequently, while occupational medical treatment represents a small portion of all treatment, the savings from integrating under private health insurance model would be substantial.”

Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers’ Compensation costs, including airlines, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: Robert_Elliott@ReduceYourWorkersComp.com or 860-553-6604.

Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker about workers’ comp issues.