• Menu
  • Skip to main content
  • Skip to secondary navigation
  • Skip to primary sidebar
  • Skip to footer

Before Header

  • About
  • Contact
  • Privacy
 
ARCADIA: Stronger Settlement Partnerships. Innovative Solutions.

Amaxx Workers Comp Blog

Reduce Workers Compensation Costs By 20-50%

Header Right

  • Home
    • Training Center
  • Search
    • Free Resources & Solutions
    • Subscribe to Free Newsletter
    • Create Free Training Center Account
    • Enroll in On-Demand Courses
    • Activate WC Mastery Membership
    • Request Strategic Coaching Session
    • Buy WC Guidebooks
  • Membership
    • Insider (free account)
    • WC Mastery
    • Teams & Managers Mastery
    • Training Partners
  • Products
    • On-Demand Courses
    • Specialty Courses
    • Certifications & Mastery Courses
    • Ultimate Guidebooks
    • Coaching
  • Blog
    • Video Blogs
    • COVID-19 / Coronavirus Pandemic
  • Login

Mobile Menu

  • Home
    • Training Center
  • Search
    • Free Resources & Solutions
    • Subscribe to Free Newsletter
    • Create Free Training Center Account
    • Enroll in On-Demand Courses
    • Activate WC Mastery Membership
    • Request Strategic Coaching Session
    • Buy WC Guidebooks
  • Membership
    • Insider (free account)
    • WC Mastery
    • Teams & Managers Mastery
    • Training Partners
  • Products
    • On-Demand Courses
    • Specialty Courses
    • Certifications & Mastery Courses
    • Ultimate Guidebooks
    • Coaching
  • Blog
    • Video Blogs
    • COVID-19 / Coronavirus Pandemic
  • Login
  • About
  • Contact
  • Privacy
You are here: Home / Assessment & Diagnostics / Assess 12 Areas To Determine Cause Of High Workers’ Comp Costs

Assess 12 Areas To Determine Cause Of High Workers’ Comp Costs

November 2, 2022 By //  by Michael B. Stack

An assessment of your workers’ compensation program is the first phase of developing a program meeting your company’s need to reduce insurance costs so the company can remain competitive in its industry.

Solutions and recommendations for changes, upgrades, revisions, and current practices must be based on a complete understanding of key cost drivers: those factors which are the root cause of your company’s high costs. Often, recommendations for change are based on assumptions, not facts, and therefore may be incorrect.

Analyze Effectiveness & Integration of Work Comp Components

Companies need to review their internal workers’ compensation management systems, their data, their file handling system, and vendors like outside medical service providers, investigators and insurance companies. Rather than simply taking an inventory of these items, companies should analyze the effectiveness and integration of these components in their workers’ compensation. program. A company should target its “unique identifiers,” those factors which differentiate its problems from other companies.

A thorough review of the level of understanding and awareness of the company management and the perception and attitude of employees is also critical to an effective assessment. In regard to internal control procedures, consider the consistency with which they are applied and look for procedures which are implemented promptly. For example, delays in referring claims to the insurance company and delays in an employee’s return to work may be causes of higher than normal indemnity costs. Delays in referral of cases to a physician reviewer may result in higher medical costs due to unnecessary requests for medical examinations such as IMEs. Good procedures are only good if they are consistently and timely applied.

Click Link to Access Free PDF Download

“Step-By-Step Process To Master Workers’ Comp In 90 Days”

Consider Intangible Issues

Information should also be considered about more intangible issues such as internal company reporting relationships and duties of personnel having responsibility for workers’ compensation. Basic information about the company, its industry, number and location of employees, makeup of the work force and type of work is essential to a proper assessment. For example, problems associated with off-site employees are different than those associated with employees who are located on-site. Off-site employees such as delivery people, outside sales forces or seasonal construction crews may have little or no supervision, use different transportation modes or be required to carry more tools or materials than employees working in a manufacturing facility. This impacts the types of workers’ compensation cases and expenses to the company from these employees.

12 Practices Should Be Reviewed:

  • data analysis
  • safety
  • communication
  • training
  • return to work
  • coordination of medical care
  • medical cost containment
  • investigation
  • file reviews
  • hiring
  • account instructions
  • claim handling standards

FREE DOWNLOAD: “Step-By-Step Process To Master Workers’ Comp In 90 Days”

Rather than simply taking an “inventory” of these items, companies should analyze the effectiveness and integration of these components in their workers’ compensation programs.

 

Author Michael Stack, Principal, COMPClub, Amaxx LLC. He is an expert in workers compensation cost containment systems and helps employers reduce their work comp costs by 20% to 50%. He works as a consultant to large and mid-market clients, is co-author of Your Ultimate Guide To Mastering Workers Comp Costs, a comprehensive step-by-step manual of cost containment strategies based on hands-on field experience, and is founder of COMPClub, an exclusive member training program on workers compensation cost containment best practices. Through these platforms he is in the trenches on a working together with clients to implement and define best practices, which allows him to continuously be at the forefront of innovation and thought leadership in workers’ compensation cost containment.

Contact: mstack@reduceyourworkerscomp.com.

Workers’ Comp Roundup Blog: https://blog.reduceyourworkerscomp.com/

©2022 Amaxx LLC. All rights reserved under International Copyright Law.

Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker, attorney, or qualified professional.

FREE DOWNLOAD: “Step-By-Step Process To Master Workers’ Comp In 90 Days”

Filed Under: Assessment & Diagnostics

Related Articles

New Year’s Resolutions to Reduce Workers’ Compensation Costs

New Year’s Resolutions to Reduce Workers’ Compensation Costs

5 Elements to Review in Assessment of a Workers’ Comp Program

5 Elements to Review in Assessment of a Workers’ Comp Program

How to Calculate Your Minimum Experience Modification Factor

How to Calculate Your Minimum Experience Modification Factor

Start the New Year Off Right With An Ergonomics Review

Start the New Year Off Right With An Ergonomics Review

The Single Biggest Mistake With BIG DATA in Workers’ Comp

The Single Biggest Mistake With BIG DATA in Workers’ Comp

The Single Most Comprehensive Workers’ Comp Leading Indicator

The Single Most Comprehensive Workers’ Comp Leading Indicator

8 Steps To Assess Your Workers Comp Program

8 Steps To Assess Your Workers Comp Program

Conducting an Effective Security Risk Assessment

Conducting an Effective Security Risk Assessment

Complex Regional Pain Syndrome – Red Alert!

Complex Regional Pain Syndrome – Red Alert!

Identify Real Cost Drivers in Post Loss Workers Compensation

Identify Real Cost Drivers in Post Loss Workers Compensation

How to Handle the Worst News in Company History

How to Handle the Worst News in Company History

Workers Compensation This Week In Review

Workers Compensation This Week In Review

Free Download

5 Critical Metrics To Measure Workers’ Comp Success - FREE Download Click Here Now!

Train to Succeed

BECOME CERTIFIED IN WORKERS’ COMPENSATION

Proven Course Catalog & WC Toolbox Give You The Power To Achieve Lower Costs and Better Injured Worker Outcomes

VISIT WORKERS' COMP TRAINING CENTER

Previous Post: «workers' comp Investigation Special Investigation Unit: Stop Fraud with Proper Training
Next Post: Say NO to “No Work” Doctor Diagnosis in Workers Comp Claims »

Reader Interactions

Comments

  1. Gretta

    November 12, 2016 at 9:25 pm

    This website indicate no affiliation with Niantic, The Pokemon Corporation and/ or and and these connected herein come in no relation.

Primary Sidebar

FREE DOWNLOAD

5 Critical Metrics To Measure Workers’ Comp Success - FREE Download Click Here Now!

Our Sponsors

ARCADIA - Enhancing Settlement Outcomes

The Structured Settlements Company
 

Catastrophic and Risk Solutions, Case Management Solutions, and Specialty Networks
 

MSAs, Section 111 Audits, & Conditional Payment Resolutions
 

Post-Settlement Administration
 

Medcor

Injury Triage, Onsite Clinics

Read Our Award-Winning Blog

Blog Categories

Search Our Archive

Subscribe to Our FREE Newsletter

Return-to-Work Essentials

Footer

Search Our Archive

Search our continually growing archive of over 2500 articles about Workers' Comp issues.

Quiclinks

  • Calculators
  • Terms & Abbreviations
  • Glossary of WC Premium Terms
  • WC Resources
  • Best Practices
  • Industries
  • Return-to-Work Essentials

RSS Recent Blog Posts

  • 11 Tips for Taking an Effective Recorded Statement in Workers’ Compensation Claims
  • 10 Best Practices for the Workers Compensation Claim Handler
  • Properly Handling Mental Claims in Workers’ Compensation
SUBSCRIBE TO OUR FEE NEWSLETTER
Let Us Help You Stomp Down the High Cost of Workers' Comp!
Top of Page ↑
  • Home
  • Training Center
  • Search
  • Membership
  • Products
  • Blog
  • About
  • Contact
  • Subscribe
  • Login
Copyright © 2023 Amaxx, LLC. All Rights Reserved. · Privacy Policy / Legal Notice