The Best Tidbits Of News From The Workers Comp Community


The United States House of Representatives today passed the Saving Medicare and Repaying Taxpayers (SMART) Act as part of a broader legislative effort. The SMART Bill was attached to House Bill 1845 Medicare IVIG Access Bill which provides for…Read More
Create a framework for your organization’s risk management program that aligns with its goals, sets roles and responsibilities for the team and provides communication strategies needed to report to senior management and other stakeholders.  Read more…
Broadspire, a Crawford Company (NYSE: CRDA; CRDB) and leading third-party administrator of workers compensation claims, liability claims and medical management services, announced today that it has been awarded continued accreditation for Case Management, Workers' Compensation Utilization Management, Health Utilization Management, and Independent Review Organization: Internal Review from URAC, a Washington, DC-based health care accrediting organization that establishes quality standards for the health care industry. Read more…
From now thru Dec 2012, if you buy either the 2012 RIMS Benchmark Survey Book or the 2012 Workers Compensation Management Program Book, we’ll send you a second copy at no charge.
The RIMS Benchmark Survey Book and our Workers Comp Cost Reduction Book are the most popular books that we offer, and we're trying to set a sales record in December.
Now thru December 31, 2012 order one copy of either of two books below and receive a second copy of that book for FREE.  Read more…
Tallahassee, FL ( – The Florida Legislature passed and Governor Rick Scott has signed into law CS/HB 941, which amends sections 440.02(9) and 440.05, Florida Statutes. Effective July 1, 2013, the law changes to include Limited Liability Company (LLC) members as employees.  Read more…
Author Michael B. Stack, CPA, Director of Operations, Amaxx Risk Solutions, Inc. is an expert in employer communication systems and part of the Amaxx team helping companies reduce their workers compensation costs by 20% to 50%. He is a writer, speaker, and website publisher.
©2012 Amaxx Risk Solutions, Inc. 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 about workers comp issues.

Workers Comp Resource and Cost Cutting Areas

Workers Comp: Ripe For Cost-Cutting – Two Places To Check


Despite devotion to corporate cost cutting, there is one expense that still gets very little attention: workers compensation.


And the cost is very high.


According to the 2010 RIMS Benchmark Survey, the average Cost Per Full-time Equivalent Employee for all industries combined is $701 Cost Per FTE for workers compensation. The Cost Per Employee is normally lower for companies with greater than 1 Billion in revenue and higher for companies with less than 1Billion in revenue. The 2010 RIMS Benchmark Survey contains tons of useful information. It’s definitely an excellent resource — either online or in print and companies that contribute their data get a huge discount, so that’s something to consider. The 2011 RIMS Benchmark Survey should be published soon. I get the print version, and keep it handy, on my desk, from the past 8 years.


Both the 2009 and 2010 RIMS Benchmark Surveys contain workers compensation best practices, indicating which best practices employers have implemented. This is excellent information to compare your company’s performance and build management committment for programs such as transtitional duty, employee communication, cost allocation, post injury response procedures and many more operational best practices. It’s well worth spending some time reviewing this information to see what your company can do better. For example, the RTW Ratio is closely tied to the mod and how much a company pays for their workers compensation, a fact that we have been waiting years to learn.


Many signs point to larger workers compensation tabs in the future. A good cost reduction goal for companies is half national average or half industry average.


As with other outlays, employers can trim with some thought and effort.


Costs need not be this high. Insurers, unions, workers, lawyers and doctors are all contributing to the current waste and the employers who finance workers compensation must bear much of the fault, too.


Why is this?


Employers are unwittingly encouraging employees to remain on workers compensation much longer than necessary.


When executives at a large publishing company were pondering their burgeoning workers compensation costs last year for example, they found a fairly convincing explanation.


Their employees who were getting such compensation were effectively receiving 10% of their salaries.


This company is not alone.


Here are some of the main reasons why workers compensation is often needlessly expensive:


Double Dipping

Like many other employers, a national construction company had a group disability insurance policy. Thus, one employee was receiving workers compensation following back surgery and, after 26 weeks, began receiving disability payments too.


Combined with some personal insurance policies, this double income meant the worker’s at-home pay exceeded his at-work pay. Naturally, in 1993, when the company offered him a job with light duties but at his full salary during his recuperation, he turned it down


The lesson: Eliminate double dipping. While workers personal insurance is their own, employers should deduct workers compensation from other duplicative company payments. To do otherwise encourages malingering.


Idle Income

In Massachusetts and a few other states, employees on workers compensation can qualify for unemployment benefits under certain circumstances.(WCxKit)


To prevent this outrageous form of double dipping, companies should offer all injured workers transitional jobs they can perform even with their physical restrictions. Under the eligibility rules, workers who refuse such offers will not be deemed unemployed.


Double Dipping and Idle Income are two ways your out-of-work employees may be milking the system. Find out more #WorkersComp.

Author Rebecca Shafer, JD, President of Amaxx Risks Solutions, Inc. is a national expert in the field of workers compensation. She is a writer, speaker and website publisher. Her expertise is working with employers to reduce workers compensation costs, and her clients include airlines, healthcare, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing.  See for more information. Contact:





Workers Comp Resource Center Newsletter

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.

©2010 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact


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