Work Comp Reserves Can Affect Your Rates

Workers’ compensation insurance has a long tail. In other words, if one of your employees gets injured, the insurance company must set aside or “reserve” a certain amount of money to cover a workers’ comp claim until it is closed. How an insurance company reserves is a question staffing companies frequently asks me. It matters because a serious injury to one of your employees will require a higher reserve and will probably increase your rates or cause you to be cancelled by the company. Remember it may take a couple of years to settle the claim so while the claim in “open” your rates will be negatively impacted. Here are some factors carriers consider when evaluating claim reserves:

  • Fee schedules and ceilings on care. Some states have fee schedules and limits on types of care, such as chiropractic. This tends to make the cost more predictable. Other states do not.
  • Permanent and temporary disability and lifetime medical. These are expensive items for which to reserve. Some states are more generous than others for disability and formulas vary. Future medical is affected by a number of factors including age.
  • Vocational rehabilitation. Depending on the severity of the injury, some kind of rehabilitation may be required, so an injured worker can return back to work. This requires expenses associated with accommodating the employee in the workplace or assistance in finding new employment.
  • By knowing these factors, a professional employer organization (PEO) can give you an estimate on how much an injury will affect your experience modification.

Since Professional Employer Organizations (PEO) tend to work with you as a business partner (versus simply as an account on a profit loss statement) they will work hard with you to keep reserves to a minimum, and get your claims closed as soon as possible.

Please call us for a FREE workers’ compensation quote at 202-302-1212. Or visit us as www.StaffingCompSolutions.com.

All the best
David Schek
President-Work Comp Staffing Solutions

Over 25 Years of Staffing Workers Compensation Experience.

Claims Handling: A Crucial Part of Reducing Your Workers’ Compensation Bill

Injuries related to lifting, pushing, pulling and slips and falls are a major source of injuries and comprise many claims. Proper handling ensures that only “real” claims of injured workers receive treatment and benefits. Fraudulent workers compensation claims are reduced and eliminated. Getting your carrier or, better yet, a Professional Employer Organization (PEO) to keep track of and meet the basic requirements will prevent delays and lawsuits. Here are some tips staffing agencies should follow.

  • Maintain a checklist of mandatory information to include on a claim and provide it to each claims adjuster
  • Interview the employee immediately and thoroughly. Find out how and when the injury occurred. This is important if it’s a strain or sprain and the employee misses work. There may be a pre-existing injury that’s been re-aggravated.
  • The staffing agency needs to make all employees aware of their rights and responsibilities under workers’ comp law. Requirements differ by state, and the burden is on the employer to follow the law.
  • Keep claim loads manageable. It’s easy for claims adjusters to get overloaded, and that’s when mistakes are made.

Please call us for a FREE workers’ compensation quote at 202-302-1212. Or visit us as www.StaffingCompSolutions.com.

All the best
David Schek
President-Work Comp Staffing Solutions

Over 25 Years of Staffing Workers Compensation Experience.

The High Cost of Drugs and Indemnity on Workers Compensation Claims

Although it has been discussed frequently in workers’ comp circles, the cost of using off label drugs to treat workers’ comp injuries is a practice that continues to thrive, despite states attempts to draw attention to it. It’s an industry that continues to cost employers over $1 billion a year. Besides the cost it’s dangerous, especially in pain management. Some drugs intended for Stage four cancer patients are being used to treat back and joint pain with no proof that they provide any benefit. In fact because they’re powerful opioids, they may do more harm by leading to addiction.

Indemnity claims are another cause for concern. While they’re going down in most states, California being the exception, injuries that result in lost wages and permanent disability still cost employers more in higher workers’ comp premiums. In the current economy insurance experts point out that cottage industries are cropping up that get injured workers on disability, as an acceptable alternative to working.

This has serious consequences for staffing as more and more companies rely on temporary employees. Emphasizing safety and managing the costs of workers’ compensation through a traditional workers’ comp carrier, or better yet a professional employer organization (PEO), should be a top priority if these trends continue.

Please call us for a FREE workers’ compensation quote at 202-302-1212. Or visit us as www.StaffingCompSolutions.com.

All the best
David Schek
President-Work Comp Staffing Solutions

Over 25 Years of Staffing Workers Compensation Experience.

What is a Workers Compensation Set Aside and Why It Matters to You?

A Workers’ Compensation Medicare Set-Aside Arrangement (WCMSA) is a financial agreement that allocates a portion of a workers’ compensation settlement to pay for future medical services related to the workers’ compensation injury, illness, or disease. Once these funds run out only then will Medicare pay for treatment related to the workers’ compensation costs.

How does this affect staffing companies? Because all parties have responsibilities under the MSP, and in many states staffing agencies share joint responsibility with client employers. This can be a complicated process, especially if there is extensive on-going medical care including medication. As long as temporary staffing continues to grow in certain industries and people stay in the workforce longer, these settlements will grow. The influx of immigrant employees may also mean more settlements.

It’s important for staffing agencies to work with carriers and their Professional Employer Organization (PEO’s) to put together detailed and carefully crafted settlements that will pass muster with the Centers for Medicare and Medicaid Services. New legislation may make the process easier, but they will be changes nonetheless. Staffing companies should get up to speed on their obligations and responsibilities this year.

Please call us for FREE Workers Compensation quote at 202-302-1212. Or visit us at www.leaststsaff.com

Happy New Year- Let’s make it a safe one.

David Schek
President
StaffingCompSolutions.com

Tips For Reducing Workers Compensation Accidents This Holiday Season

During this holiday Season, the increased use of temporary employees to meet peak demand by many of your clients, may result in higher than normal workers compensation accidents for your staffing company.

Below is a link  to  a short article suggesting some good, common sense steps you can take to minimize workers compensation accidents at your client’s sites this holiday season.

http://www.workcompwire.com/2014/12/guest-post-woody-hill-tis-the-season-for-workplace-safety/

There are 2  key points that this author makes. The first is that  training, which is important throughout the year, is even more critical this holiday season since you are probably dealing with many new and relatively less trained employees. The second tip is to make sure these less experienced temporary employees are familiar with the surroundings and potential hazards in their new work place.

Please let me know if you would like to start the New Year with a workers compensation quote that can save you money and increase your profits in 2015.  Feel free to contact me at david@StaffingCompSolutions.com and visit us at www.StaffingCompSolutions.com

All the best and happy holidays.
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
ASA Exhibitor  2014 Conference
ASA  Staffing PAC Contributor

StaffingCompSolutions.com—- Workers Compensation Specialists and Staffing Business Consultants For Over 25 Years.

NCCI Sees First Profit In 8 years For Private Insurers

This is important news for staffing companies who have been forced to use their State Funds because they have been unable to qualify for less expensive private insurance programs. This may mean that rates are coming down longer term for those staffing companies that are have very good loss histories. Also private insurers may be more willing to take on greater risks; resulting in more staffing companies exiting the State Funds. (see link below for details)


http://www.businessinsurance.com/article/20141110/NEWS08/141119984

This could be a perfect time to evaluate your workers compensating policy if you are in the State Fund and let Work Comp Staffing Solutions review the work comp market with you to see if you qualify for a better workers compensation insurance program.

Please feel free to reach out to Work Comp Staffing Solutions at david@StaffingCompSolutions.com or contact us at 202-302-1212

David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
ASA Exhibitor 2014 Conference Booth 1123
California Staffing Association Member

StaffingCompSolutions.com—- Workers Compensation Specialists and Staffing Business Consultants For Over 25 Years.