Five Things a District Can Do to Save on Workers’ Compensation Claims

By Stacy Corluccio

With the state budget shortfall, it is no wonder why everyone is scrambling to figure out how much money can be saved within their risk management programs. So many numbers being thrown around from legislators can make it very difficult to discern and forecast what a district should do for short and long term for budget planning. While the costs are very tangible and measurable for unemployment compensation and other claim types, one may not think about how to save on workers’ compensation claims costs. There are some cost-savings tips you can employ year round. Let’s start the countdown, shall we?

1. When going out to bid, consider the cost savings and containment measures  that each carrier or third-party administrator (TPA) offers. Does the TPA  offer in- house preauthorization, in-house bill review? What about a  network or directing contracting program for injured worker medical treatment?  What are the statistics that each TPA can provide to demonstrate savings?   These services can drastically reduce the medical and income cost per claim.
2. Track your losses using online claim reports. Identify trends and work with  your Loss Prevention experts to determine where safety measures should be  implemented.
3. Hold regular safety committee meetings and invite your Loss Prevention Consultants to attend. Together you can communicate trends and provide assistance to your district staff members in reducing your risks accordingly. 
4. Make sure you track return to work dates and file claim forms timely. If you file  a DWC-6: Supplemental Report of Injury late after a worker comes back to work,  even by just a few days, the Temporary Income Benefits (TIBs) can add up for  Administrative Services Only members. Just a couple of weeks’ overpayment at  the Maximum Rate of TIBs ($1532) should and can be avoided. The same rule  applies for Wage Statements. If your carrier  or TPA only has a First Report  of Injury from which to calculate benefits, that wage could include overtime  which inflates the TIB Rate and your bottom line on loss runs.
5. Implement a Return to Work (RTW) program. This can perhaps have the highest financial impact depending on your lost time claim counts. While it may take some initial work to get the program rolling, if you are a member of the Fund’s Workers’ Compensation Program, we have a program template ready to go. All you have to do is give us a call to get started. Sarita Shipe is your RTW Program contact, and she can be reached at 800.482.7276, ext. 7221, or at .

There are plenty of other cost-savings ideas that we can ponder. This article should simply get everyone thinking about short and long term solutions. If you have any questions on any of the Fund’s programs or need cost savings ideas, please feel free to contact us at 800.482.7276. Visit the Fund Web Site and click on the green tab for a list of contacts!