How To Reduce Workmans Compensation Costs
Often times Workmans Compensation premium costs aren’t a problem until they’re a problem, but by then it’s not easy to fix. Increased injury rates, lost time injuries, increased medical costs and other related negative trends aren’t easy to reverse and correct once started. In the meantime, your workmans compensation premiums are going through the roof, and you’re left paying the bill. This is why it’s so important to implement effective PREVENTION programs such as OSHA compliant health and safety programs combined with injury and illness case management and return to work programs. But these programs need to be put in place before the problems start. Did you know that your EMR (Experience Modification Rate), the number that determines your WC premium, has a 2 year delay before it begins to factor in improvements in your injury rate performance?
The good news is that all of these factors are actually under a company’s control, and steps can be taken to control and reduce injury rates and associated insurance costs. Companies must assign experienced professionals to manage Workmans Compensation claims to prevent unnecessary costs and lost time injuries. Strategies include implementation of written policies and procedures, providing experienced in-house first aid services to prevent unnecessary medical treatment, establishing strong relationships with your local clinics and choosing clinics who have occupational physicians on staff who understand how to manage workplace injuries to prevent excessive treatment and lost time. But that’s not enough, your company needs to meet with these physicians to discuss work requirements and conditions, as well as treatment expectations and ensure that they follow and meet your expectations.
The overall objectives are to: 1) prevent injuries to begin with, and 2) when injuries do occur, manage them to ensure that costs are controlled and employees return to work as soon as is medically feasible.
This post is only intended to provide summary and introductory information. There’s much more to learn and implement in order to manage and reduce your Workmans Compensation premiums.
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