Four unnecessary Workers’ Comp costs

According to the National Safety Council’s 2010 edition of “Injury Facts,” preliminary data showed the number of disabling unintentional injuries reached 3.2 million in 2008, translating into 110 million lost workdays (70 million from injuries) and an estimated total cost of $183 billion. Wage and productivity losses accounted for $88.4 billion, medical costs represented $83.3 billion and administrative expenses were estimated at $37.7 billion. These staggering numbers are even more alarming in light of the 2009 RIMS Benchmark Survey finding that approximately 60% of companies have deficiencies in Workers’ Compensation claims management.

Four unnecessary Worers’ Comp costs

1.) Litigation
Litigation alone can take a $10,000 claim and make it a $40,000 claim. Mistrust, confusion and uncertainty are breeding grounds for litigation. Two things are important here. First, employees need to believe that if they are injured on the job, they will receive due benefits and be treated fairly. Employers need to convey this promise before injuries occur and deliver on the promise when a legitimate claim occurs. Second, trust means everything in getting the employee back to work.

2.) Unnecessary disability duration
A disability duration out of proportion to the severity of the injury or illness can occur when treatment and return to work are delayed simply because a claim becomes snagged in the system.

3.) Expanded scope of injury
When an accident occurs, be sure that the employer, employee and medical provider carefully document the scope of the injury….

4.) Excessive impairment ratings
While the American Medical Association (AMA) Guides to the Evaluation of Permanent Impairment is intended to standardize impairment rating best practices, they are not always used and not used consistently…

* To see the full article or to sign up for The Seltzer Group’s monthly workers compensation newsletter, please email jtahaney@seltzergrp.com.

The Seltzer Group with locations in Schuylkill Haven, Orwigsburg, and Pottsville, Pennsylvania, serves businesses and individuals locally, regionally, and on the national level.  The Seltzer Group is a proud member of the Keystone Insurers Group.

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Four unnecessary Workers’ Comp costs was last modified: August 26th, 2014 by Sarah McGorry