Controlling workers' compensation costs.

Abstract

Providers should try to prevent as many losses as possible through inservices on proper lifting techniques, placing wet-floor signs while mopping, etc. The losses which can't be prevented must be controlled. Implement easy-to-understand, yet effective, policies and procedures, making the injured employees and insurance carrier accountable. Stop relying exclusively on those traditionally relied upon to provide risk management services. Brokers/agents seldom have the technical training in all aspects of insurance or the knowledge of the day-to-day operations of an employer. Insurance companies are more concerned about their costs than how ineffective claims handling and inadvertent over-reserving affects a facility's day-to-day operations and premiums. If an employer is large enough, it should hire someone in-house or subcontract risk management services if the service company proves that it knows how to implement and monitor a cost-effective risk management program. Taking the old adage, "you have to spend money to make money," one step further: "you have to spend a little money to save lots of money."