The New York State Workers Compensation Board has announced that it will transition from a paper to an electronic employer report of injury system by adopting the IAIABC (International Association of Industrial Accident Boards and Commissions) Claims Electronic Data Interchange (EDI) Standard Release 3.0. Founded in 1914, the IAIABC is a not-for-profit trade association representing government entities who administer workers comp systems.
Currently, the Board accepts New York-specific claims information from employers and insurance carriers through paper submission. Beginning in early 2013, these submissions will be required to match the IAIABC standard and be made electronically. .[WCx]
"Electronic filing will reduce system waste and increase efficiency, meaning businesses will save while injured workers will receive their benefits faster," the Board’s Executive Director Jeffrey Fenster said. "We are working closely with employers and insurers in the workers compensation industry to ensure a seamless transition to electronic filing."
More than 30 states currently use or are planning to use the IAIABC EDI standard for claim submissions. Most national insurance carriers already utilize this standard. The technology is recognized as the national best practice for workers comp injury reporting. The Board will implement the mandate of electronic reporting in phases beginning with those national carriers that use IAIABC EDI in other states. .[WCx]
Based on the experience of other states that have implemented the IAIABC standard, the Board anticipates that its adoption in New York will yield significant benefits, including:
- Improving the timely delivery of benefits to injured workers.
- Providing a single, consistent data format.
- Reducing waste, abuse, and delay in the system.
- Reducing paper handling costs to system participants outside the Board, i.e., handling, completing, and shipping.
- Reducing high costs to the Board for handling, processing, and scanning paper documents as well as certain data entry costs.
- Reducing duplicative claim form filings.
- Increasing the quality and timeliness of information received by the Board.
- Improving data collection for system oversight and policy making.
Mario Cilento, president of the New York State AFL-CIO, noted, "The heart of the workers compensation system is delivering benefits to injured workers when they need them. Labor supports implementing the new paperless standard, which will quicken the delivery of benefits. Anytime we can streamline that process without compromising the integrity of the system, injured workers are better served. The data collected will also lead to improved information for policy-making in the future. We appreciate the Board's efforts to improve the delivery of service in this area."
Author Robert Elliott, executive vice president, Amaxx Risk Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers Compensation costs, including airlines, healthcare, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He is an editor and contributor to Workers Compensation Management Program: Reduce Costs 20% to 50%. Contact: Info@ReduceYourWorkersComp.com.
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