Industry Survey Shows Employers Fall Short in Workers Comp Cost Control

Results of First Industry wide Survey at Best Practices for Post-Loss Cost Control

The first-ever  industry wide survey on best practices for post-loss workers' compensation cost control reveals that most employers are falling short, according to Advisen, which conducted the survey for the Risk & Insurance Management Society.

The 2009 RIMS Benchmark Survey    included for the first time a workers' comp best practices survey. Respondents included 1,127 organizations in the United States and Canada.  

The survey  included ten questions selected from the National Workers' Compensation Management Score assessment survey in the Workers' Comp Kit located at www.ReduceYourWorkersComp.com  from Amaxx Risk Solutions.

Each respondent  received a numerical score, with 26 representing the high possible score. The average score was 11.1.  Only 11%, or 127 respondents, scored in the top category (20 to 26 points) considered to be best-in-class, while 215 organizations scored 0 or below. The companies in the best practice classification represented a broad range of industries including retail, wholesale, healthcare, education, energy, finance, construction and shipyard/aerospace/defense, as well as public entities such as city and local governments. These top-scoring companies are headquartered in the U.S. and Canada; many have both domestic and international operations.

"The top scorers  consistently use nearly every type of resource and tool listed in the survey," said Dave Bradford, editor-in-chief  at Advisen.  "They perform onsite file reviews, have a post-injury response procedure that is consistently applied across all locations, and have return-to-work programs that are implemented at all locations."

Consumer discretionary  companies had the best average score, 13.5.  Financials scored lowest at 8.0.  Nonprofits (10.7) and materials companies (11.2) were in the mid-range among the 12 industry groups.  Several survey questions included: Has a representative of your company reviewed some of your workers' compensation claim files within the last 6 months?  Most companies (65.7%) did the review onsite, 10.6% did not perform file reviews, and the remainder did phone or online reviews.  File reviews are crucial in keeping control over cases, according to Rebecca Shafer, industry expert. How consistently does your company follow written "post-injury response" plans describing procedures within the first 24 hours after an injury?   

Some 60.4% of respondents said they followed a post injury procedure consistently; the remainder said only some locations had these procedures, and others indicated they have no written plans.  No workers' comp program can function well without following a written plan, Shafer said. How consistently does your company follow a return-to-work policy where an injured employee returns to work in a temporary position until they have recovered? 

Almost 60% (58.5%) said they followed a policy in all locations and 26.9% said they followed a policy in some locations. Thus, over 80% of companies have return-to-work policies, at least at some locations. Although this leaves room for improvement in this best practice area, it serves as a benchmark for companies without a return-to-work program, that the majority of companies have such a program. Do your operating units visit the medical facilities where your employees receive medical care for occupational injuries? 

Only 19.2% of respondents said they did so consistently, even though this is an excellent opportunity to establish rapport with the doctor, explain what the company does, and show the doctor the transitional duty jobs performed at your workplace. Additional survey  questions let companies know what others in the industry are doing to control workers' comp costs. The questions above are merely samples illustrating the valuable information inside the complete survey.

(workersxzcompxzkit) The 2009 RIMS Benchmark Survey  can be purchased from Advisen at http://corner.advisen.com  It is an opportunity to learn what other companies do to reduce their workers' compensation programs. For free workers' compensation tools go to: http://corner.advisen.com/wc_free_tools.html. For free workers' compensation cost containment podcasts, go to:  http://corner.advisen.com/wc_podcast.html

Podcast/Webcast: How To Prevent Fraudulent Workers' Compensation Claims Click here  http://www.workerscompkit.com/gallagher/podcast/Fraudulent_Workers_Compensation_Claims/index.php