Pub. 3 2021 Issue 5

Handing Over the Keys to Cost Containment inWorkers’ Compensation Claims W hen an injury occurs at work, there is no doubt it is a disruption: to the injured worker, the employer, and the workflow. For the employee, it may mean time lost from work either for medical appointments or disability. They may be unable to enjoy certain activities with their family, or participate in hobbies or sports. For the employer, it may mean they are missing an employee crucial to running their business, or they may need to temporarily make staffing adjustments to continue offering the same services they did before the employee was injured. Injuries adversely affect the member, directly and indirectly. Some studies state that the indirect costs associated with an injury in the workplace are greater than direct costs. Direct costs: • Medical costs • Indemnity costs paid to the injured worker • Litigation costs involved in defending questionable claims • Increased experience modification factors o Remember medical-only claims costs are discounted 70% when the experience modification factor is calculated. • Increased premium due to increased experience modification factors • Decreased rebate as payments reduce rebate dollar for dollar Indirect costs: • Training replacement employees • Accident investigation • Implementing additional safety and corrective measures • Lost productivity • Repairs of damaged equipment and property • Costs associated with lower employee morale and absenteeism If there was only one piece of advice to give to the employer and employees to avoid these costs related to an injury in the workplace, it would be prevention. Our NHADA WCT Loss Prevention team works relentlessly with 8 D R I V E