Telamon Top 5 - Tips to Trim Workers Compensation

Have your employees been squabbling or acting like cavemen lately? Experts say money stress may be causing ‘Stone Age’ behavior – that can cause costly mishaps at work. Here are 5 tips for keeping your people safe and driving costs down that may help you come out ahead.

 

If your Workers Compensation program has just been chugging along, it may be time to put your hands back on the wheel. A rapidly changing economy can result in revised business goals and operations requiring different insurance needs – some that may help you save significantly. For example, if you are planning to reduce your workforce, it may result in a favorable adjustment in your worker’s compensation insurance. On the other hand, reductions or reorganizations that have already taken place may result in new employee roles and responsibilities requiring a re-education on practices to assure safety. “Too often, businesses let their insurance programs run on auto pilot – but it’s during the turbulent times, like these, that they need to pay closer attention,” says Troy Fenderson, President – Telamon’s Workers Compensation Division. Whether you already have a program in place or need to start one anew, our Workers Compensation Team can help you assess your changing needs and tailor a program based on current conditions.   Now more than ever, when businesses need to keep an eye on every penny, we want to work with you to make sure you are getting the best program for your dollar.

With layoffs, closings, reductions and falling sales plaguing businesses, it’s easy to look at your company in terms of numbers only. But it’s important to remember that your employees desperately want your business to thrive – and are the ones who may pull you through. Human Resource experts are encouraging business owners to keep people first, and to take advantage of the economic crisis to engage employees in creating solutions that can result in more streamlined, efficient and most importantly, safe operations.  Employees who are closest to day-to-day operations can often come up with the best safety ideas. Not only will engaging your employees in improving operations increase morale and loyalty, it will also help you protect your human assets – making sure that everyone comes to work tomorrow the same way they did today. Members of our Workers Compensation Team like Troy Fenderson, President – Telamon’s Workers Compensation Division, can help you. Troy has over 13 years of experience as a safety consultant, teacher and safety engineer and has helped chief level executives and employees work together to increase productivity and decrease accidents, creating healthy and productive work environments. 

 

Rising healthcare costs can seem like a salmon determined to swim upstream, despite business owners’ exhaustive efforts to pull down costs in every other aspect of their business.   But one often overlooked health care cost – Workers Compensation – can offer a well-stocked fishing ground of savings for businesses who know where to cast their net.

                                                   

In an economy that requires close scrutiny of every business expense, employee benefits (at almost 30% of employer compensation costs and rising at 2% annually) deserve extra close attention. Workers Compensation costs are part of a legally required benefit that runs at about 8.3% of total compensation cost. And, it is clear that Workers Compensation costs are driven primarily by medical claims costs – which rose 200% from 1993 to 2006 and are now running at about 59% of total Workers Compensation costs. For companies that are serious about cost savings, reducing medical claims – starting with preventing injuries in the first place -- can result in dramatic cost improvements.

 

Keeping Workers Compensation costs down requires a laser-like focus and commitment from the top that flows through the entire organization. The goal is to create a culture of safety that becomes part of the fabric of the organization and begins whenever an employee sets foot in a building, sits at their computer, operates a piece of machinery or gets behind the wheel of a vehicle. 

 

We are here to partner with you to develop a safety mindset that includes safety training, programs to promote safe work habits and prevent worksite injuries before they even happen. To learn more about how to avoid Workers Compensation claims and to better understand the Workers Compensation coverage that is right for you, Contact Greg Susco at Telamon today.

 

Have you ever wondered how handing out money to employees can actually save you money? It did for Texas-based TECO People’s Gas, which used custom-minted coins imprinted with the company’s core safety values to raise awareness of safety and reinforce the importance of thinking and acting safely all the time. The coins were given out at meetings and training events to raise awareness of safety practice. The result?   Preventable accidents dropped by 30%, while Workers Compensation claims dropped by 75%, driving the company’s insurance premiums down and their profits up. Sometimes, improving your company’s safety record can be as simple as making sure employees are thinking about it round the clock. A cornerstone to an effective accident prevention program is the safety culture at your company. Our Workers Compensation Team can help you build on your existing positive safety culture or build a new one to eliminate injuries.

 

Workers Compensation has been called a “hugely wasteful” system by the National Center for Policy Analysis. This non-profit think tank accuses the current system of leaving employers believing they have lowered their health care costs, only to find that employees have shifted their claims from one coverage group -- group health -- to Workers Compensation, which offers fewer incentives for controlling costs. Surely, Workers Compensation is a complex, imperfect and continually evolving system; but it is intended to protect both employers and employees. And, it’s mandatory for Massachusetts businesses. We believe that one of the best ways to navigate this complex system is by partnering with experts who are experienced and seasoned in working with it. At Telamon, we can guide and assist you through all aspects of accident prevention and claims management, and can work closely with you to build, implement and manage an effective Workers Compensation program for your company.

  

 

One of our clients once joked that before Telamon got involved, working with service providers and the government on Workers Compensation claims was like being stuck in the mud – and getting charged every time he tried to lift his foot out.

 

Let’s say first that staying on dry land – and away from those mucky charges -- is our number one goal at Telamon. But, inevitably, despite our best efforts, sometimes we all end up in the quicksand. At Telamon, we feel it’s our job to do our best to steer you clear of the claims game in the first place; but if that fails, we’ll also lend a hand to pull you out quickly, before you sink too deep.

 

It’s no wonder that the increase in costs for medical claims is the primary driver of Workers Compensation costs. Medical claims costs rose 200% from 1993 to 2006. Currently at 59% of total Workers Compensation costs, medical claims costs are expected to hit 70% of Workers Compensation costs by 2016. These costs are being driven by an increase in the number of treatments for every claim, an increase in the cost of services, and a shift to more costly injuries. In particular, an aging workforce and increase in physical therapy, surgery and diagnostic testing are fueling the rise.

 

Given the powerful forces pushing the costs of claims up, our best line of defense is to use an aggressive, SWAT team approach to managing claims. We’ll work with you through our intensive claims boot camp training to help you learn techniques to handle claims more effectively. Telamon’s own In-House Claims Management offers a centralized claims processing center that can assist in all aspects of claims management -- helping you reduce your current claims and minimize new ones. We can also work with your injured worker and their medical provider and insurance companies to reduce your exposure.  For a free consultation on any Workers Compensation issues you might have, call Greg Susco today at 617-614-1229.

 

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