How Business Can Keep Workman’s Compensations Cost Down
Many companies these days struggle to keep their Workman’s Comp. costs down. After looking at the chart you will have some general ideas and cost saving tips to help with the “cost cutting” problem. How can you control your compensation costs?
One idea to control your costs is to create and utilize a “return to work” program. This idea brings the employee back to work, before they would have originally been able to. When an injured employee returns to work, they are doing so at an earlier rate than expected due to a lighter work load or lighter responsibilities. An example would be; if an injury occurs such as a large cut or laceration and the employee loses the uses of one hand (temporarily), they could be brought back to a smaller work load and given a task or job that does not require the use of two hands. When this practice is implanted, the company saves on workman’s compensation costs/ and or claims as well as the employee benefiting from staying actively employed and compensated.
Save Money, Save Lives By Having A Safety Plan
Companies are guaranteed to save money (and lives) when they utilize and implement a Safety Program.
A Safety Program is at the top of the “Must Have” list if you expect to control your compensation claims and costs. The first thing you need is a “Safety Manager.” Someone who is in charge of making the plan, training, education and motivation of the team or staff. Most “Safety Programs” have an employee handbook of some sort or at the minimum, written rules and regulations that are given to or posted for all employees and personnel to see. Another important step is to implement periodic inspections, provide Firs-Aid care and kits, as well as a “Return to Work” program. There should be some sort of committee or team who is in charge of keeping “Safety Standards” in the forefront of the companies mind.
High Costs of Management Control and Healthcare
Today, when an employee has an accident or work related wound, several people are involved in the medical attention and claims process. Medical care costs have skyrocketed , so taking control of the medical care provided to an employee is essential in keeping costs down.
When an employee first has a need for treatment, they are generally seen by an “onsite” triage nurse who will ask several questions about the accident and assesses the situation and care needed for the injury. They will then make sure the correct path of medical care or first aid is given and whether or not they need to go to the emergency room, hospital, or even see a specialist. The Case Manager is the person who will control and manage the claim, if the employee is required to take time off. The Case Manager coordinates the medical facility with medical care, rehabilitation, and eventually returning to work.
Cost control can be done if the company utilizes a medical fee schedule, peer reviews and pharmacy review managers. All of these are extra efforts that can help maintain a compensation cost. Another major factor for cost control is “Fraud Control” or medical or benefits fraud protection. If a company can prevent fraud, by reducing false claims, reporting payroll correctly or many other measures; they can reduce their costs by 10-20%. Enhanced claims are all over the place and they continually cause the cost of insurance to grow. This is done in the form of false claims that include, false injuries, exaggerated or fake claims, bogus lawsuits, kickbacks and even fake clinics! The examples are endless and dishonest employees, medical workers and even more come up with new ways every day to scam the system. Take control of your costs now and implement your Safety Team.