You've heard it over and over again-report claims as soon as possible to lower claims costs, but do you put this adage into action? The International Association of Industrial Accident Boards and Commissions (IAIABC) confirmed that the faster the claims process is started, the lower the workers' compensation costs. When there was a delay in reporting, there were higher medical costs, higher rates of attorney involvement and litigation, and disputes over causation, and longer periods of disability than normal for a particular injury.
In their research, IAIABC discovered there was little difference in claims cost with claims reported within a few days of the injury. However, after seven days, claims costs began to escalate and when reporting was delayed 29 or more days, the claims costs were about 45 percent higher.
In a separate analysis, The Hartford examined 30,000 claims in three categories-back injuries, carpal tunnel syndrome and other nerve disorders, which accounted for two-thirds of all lost-time workers' compensation claims. They discovered the claims filed five or more days after an injury cost an average of 15 percent more than similar claims filed within 48 hours.
In a review of 78,000 claims, Kemper Insurance discovered that injuries reported within 10 days cost an average of $12,082. Injuries reported between 11 and 20 days cost $15,582, and those reported between 21 and 30 days cost $17,920-an increase of 48 percent than those reported in 10 days or less.
In 2009 the average number of days that it took WCF policyholders to report claims was approximately 28 days. According to the research done by Kemper Insurance these WCF policyholders saw a 48 percent increase in their claims costs simply for late reporting.
Taking the following measures can help in reporting claims earlier and lowering your claims costs.
1. Educate your employees on how to report an accident. Establish a written company policy that includes the individual's name in your company who receives accident reports.
2. Don't ignore a claim, even if you think it is questionable. Report all incidents that require any medical treatment to your workers' compensation carrier. The law requires all employers to file a First Report of Injury. If you dispute a claim, report it anyway along with a letter outlining your concerns. It will allow your carrier to manage a claim without accepting liability until a thorough investigation has occurred.
3. Establish a relationship with a company physician and clinic. Occupational Medical Centers, serve as excellent company doctor choices. Be sure to notify your employees of your choice.
4. Stay involved with your claims. Keep in contact with your injured employee. Address your employee's questions or concerns about returning to work.
5. Provide modified duty as soon as possible. The sooner an employee returns to work, the easier it is to manage the medical costs. Often, they see the doctor and therapists less frequently. There is also a therapeutic value to being at work, following a regular schedule, and seeing friends and associates. It increases communication, is an effective way to handle a difficult claim, decreases potential for fraud, and controls benefits.
6. Work closely with you adjuster. He or she will become familiar with your company and will help coordinate your workers' compensation needs, including providing loss runs, analyzing trends, offering suggestions, and helping you set up programs such as modified duty and a company doctor.
