Controlling Workers’ Compensation Costs – All Hands on Deck!
The workers’ compensation (workers’ comp) premium for many companies is a large annual cost that can easily spiral. Efforts to maintain a healthy uninjured workforce, combined with an eye on controlling workers’ comp experience modification factors (Mod) is of particular importance to all organizations. Many organizations do it very well using a variety of methods and resources while others struggle to stay below the experience mod benchmark of 1.00.
Here are a few fundamental necessary approaches:
- The senior management team is fully aware of the organization’s experience modifier (the Mod), the factors that go into it (three years of claims, etc.) and in what direction it is heading.
- A senior-level staff member monitors open claims with their broker and with their current carrier. Claim reviews are conducted on all open claims in the experience period.
- Minor injuries are handled in house, fully utilizing self-pay options where appropriate, to keep those claim costs out of the Mod.
- Transitional return-to-work jobs are available and ready to be utilized. Each injury involving lost time is considered for return-to-work and, if feasible, employees work those jobs until they are healthy enough to return to their primary job.
- Injuries are carefully reviewed and investigated for varied reasons:
- To determine future preventability.
- To let workers know the employer cares why and how people were injured and so that it is evident to employees and mid-level managers that each incident will be taken seriously.
- Results of accident investigation are shared broadly with all workers.
- A safety committee or a professional staff member is administering the organization’s safety management program, ensuring training is performed, conducting inspections, correcting unsafe behaviors, and monitoring results.
A runaway Mod is not likely to occur if these fundamentals are in place and managed with accountability. A high Mod is often connected to a management issue and an expense issue. Implementing these fundamentals, monitoring the process and dedicating the resources to resolve issues will help to improve results.
Our risk management and claims professionals work together to help companies with safety management, post-injury management and cost control. Contact Rose & Kiernan, Inc. offices here or by calling (800) 242-4433.