Problem: A visitor to LowerWC.com requested personal consulting for 10 hours per week for 6 months. This manufacturing company is self-insured and uses a third-party administrator (TPA) to handle their workers’ comp claims. Through their TPA they have access to a variety of services including loss control expertise, bill review services, and nurse case management.
However, they still had three existing WC claims that involved employees out of work too long.
Solution # 1: The company obtained the tools to establish a widespread communication program for their post injury response and transitional duty programs from us.
- One employee went out on comp for an ankle injury and remained out for longer than durations stated in the Injury Duration Guidelines.
- The company worked with one of our medical advisors who contacted the employee’s treating physician.
- Our claims consultant reviewed all open files to determine whether the TPA was handling files effectively and found several areas that needed improvement. The changes were incorporated into the account handling instructions.
Results: The medical advisor asked the treating physician if it was possible for the employee to work with modifications such as a taped ankle or at a more sedentary position without stairs. Based on this conversation:
- The treating physician released the employee for transitional duty.
- The employee returned to work in a transitional duty assignment where he could alternately sit and walk until the injury healed.
At that point, the employee was released to return to his original job full-time.
Solution # 2: Another claimant with a long-term injury moved to a remote cabin in Maine where there was no labor market (other than hunting guides, forestry and farming).
- The employer worked with our off-site resources to identify a home-based job for this employee.
- The employee interviewed by phone from his attorney’s office and was offered a new position.
- Then his attorney told the company the claimant could not participate in this program due to the absence of local phone service.
- The phone company said it would cost $72,000 to run a line 3 miles to his cabin!
- Finally, the company was told that there was no cell phone coverage in the area.
Results: With our guidance, the company refused to take "no" for an answer and had us research the issue.
- A satellite phone was found that worked in this remote area.
- Once authorization was given, the employee was able to participate in the home-based business located by our partner.
- The case settled favorably within a few weeks for $12,000.
- This resulted in a savings of over $60,000. With a profit margin of 7%, this was the same as increasing sales by approximately $857,000.
When utilized properly, the tools and information provided by Amaxx Risk Solutions, Inc. will save your medium-sized company money, just as it did for this one. For more information on how your company can reduce its workers’ comp costs, learn about our step-by-step guidebook: Workers Compensation Management Program: Reduce Costs 20% to 50%.
Do you have a specific workers’ comp related problem that you do not know how to handle like this mid-sized manufacturer. Amaxx Risk Solutions, Inc. and LowerWC.com can provide the solutions you need to control your workers’ compensation costs.
Note: All forms (bold / italics) and documents referenced are available at WorkersCompKit.com.
When can an employer expect to see 20% to 50% savings in workers’ comp costs?
Most employers see immediate savings. The savings is in lower loss costs year after year. For companies with large deductibles, these costs are all out of pocket and quickly begin to shrink once the employer exerts control over the claim process.
For example, instead of having $200,000 in costs of injuries per year out of pocket, your might be able to reduce that to less than $100,000 yearly, by reducing the number of claims and the duration of each of those claims. This increases impact to the bottom line.
Premiums based on the mod will also go down when claim frequency and severity are reduced as a result of “taking control.” Be aware, though, it takes several years to work the “bad” years out of the premium formula. The time to start is now!
Every one of our clients who have progressed through the full program – from assessment through implementation – have reduced losses at least 20%, usually closer to 50%, and in some cases even more.
Taking control halts the process of abuse and establishes best practices for how workplace injuries are handled.
An analogy: Taking control of the workers’ comp process in a company works much like a company establishing an inventory control system – the amount of inventory ordered is suddenly reduced by implementing a process that includes accountability and provides structure.
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