Workers’ compensation, a complicated and sometimes confusing part of doing business, might actually be a source of cost savings.
In order to control costs and get the most out of a workers’ compensation plan, contractors need to understand what a good program offers.
Find the Perfect Provider
The insurance industry has suffered difficult investment conditions, declining stock values and financial losses. Now more than ever, it is important for employers to select a financially secure insurance provider.
Look for a carrier or provider that recognizes that workers’ compensation is a people business. The carrier should work with an organization to develop loss control programs to empower employees to prevent injuries before they occur.
Ask about the carrier’s take on transitional duty programs and how these could help the contractor get an injured employee back to work. Any workers’ compensation professional must understand the human side of workplace injuries and the impact they have on employees and families.
Serious About Service
Make sure the workers’ compensation provider is solution-driven and committed to prompt and personalized responses. Ask the provider about the adjusters’ caseloads. Lower caseloads impact the outcome of claims, and adjusters who have adequate time to manage claims provide a higher level of service.
Also, ask if the provider has a responsive claims call center. A provider with a focus on customer service helps facilitate claims reporting and reduces response time to basic questions.
Managed Care Matters
Managed care solutions should integrate the people, expertise and technology needed to reach the best claim outcome while containing medical costs. A strategic medical bill review process is important because of the potential savings to an organization when a workplace accident occurs. The process should include reviewing pre-operative and post-operative care, as well as ongoing therapy.
A provider’s attention to appropriate procedures, as well as billing details, contributes to a contractor’s savings, timely bill payment and overall satisfaction. And, meeting the needs of injured workers gets them back to work as quickly as possible—benefitting everyone.
Location, Location, Location
Focus on local market dynamics when evaluating the effectiveness of a medical provider network. Workers’ compensation claim costs are impacted by network quality, accountability and penetration. A workers’ compensation provider that utilizes a multi-layered medical provider network, with knowledge of local area physicians and pharmacies, can address the specialized needs of injured workers more effectively. It also ensures injured workers can access the best quality health care and most responsible medical providers in their region.
Additionally, a focus on network optimization and penetration allows an organization to reduce medical and pharmaceutical costs.
Industry Specifics
Partner with a provider that has industry expertise, understands the market and has a track record of consistent success. A company that specializes in workers’ compensation in the construction industry has a better understanding of economic drivers and competitive factors, and the ability to develop comprehensive, cost-effective programs tailored to a contractor’s unique needs. Furthermore, a company that understands construction exposures can help a contractor achieve better claim outcomes.
Look for a provider that has a proven record of success by comparing its results to industry benchmarks. A fully accredited actuary can attest to the results. Don’t simply rely on a statistic cited by a marketing or sales representative.
Knowing the basic questions to ask, and what to look for in a carrier or provider, can help a contractor get the most out of its workers’ compensation program.
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Wednesday, February 8, 2012