by Greg Summerhays
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 than normal periods of disability 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 more
than those reported in 10 days or less.
In 2010 the average number of days that
it took WCF policyholders to report claims was approximately 26 days. According
to the research done by Kemper Insurance these WCF policyholders may have
seen 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
WCF. The law requires all employers to file a First Report of Injury. If you
dispute a claim, report it anyway along with a note outlining your
concerns. It will allow WCF 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 your 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.
Greg Summerhays is Director of Public
Relations at Workers Compensation Fund. WCF offers ongoing safety training and UMA members are eligible for a 5%
premium discount through a partnership with WCF. Visit www.wcfgroup.com/safety for more information.
