Employees injured in a workplace shall be entitled to receive workers’ compensation. Workers’ compensation shall be provided either as a lump sum payment or as weekly settlements. However, there are several myths and misconceptions surrounding this concept that have quite often mislead people to believe in false claims. Here are 4 myths about workers’ comp cost containment you must not believe:
Myth 1: Controlling Workers’ Compensation Costs is not possible
Truth: Management in several organizations are unaware of the methods that can be executed to bring down workers compensation costs. There are proven methods to keep costs under control such as letting employees return to work as soon as possible when they are able to perform their duties.
Myth 2: Cost Containment Programs can ‘fix’ High Costs of Workers Compensation
Truth: A workers comp cost containment program is a thoroughly and meticulously planned approach to reducing costs, but not a fix. An effective cost containment strategy shall be designed if there are necessary resources available. Higher workers compensation costs are the result of lack of communication, resources and other flaws.
Myth 3: Reducing the Cost of your Medical Providers is the 1st Step to Cost Containment
Truth: Attempts to bring down the fees charged by the medical provider is sensible, but that shouldn’t be your priority. Bringing your employee back to work is important before focusing on cost containment issues. Reducing the number of ‘lost days’ and bringing your employees back is one of the best steps you shall take to controlling the medical costs. The more days your employee is absent for work, the more the costs will be.
Myth 4: Once Cost Containment Strategy is Implemented, Workers’ Compensation Premium Falls Immediately
Truth: Not true. When it comes to workers comp cost containment, loss costs falls immediately. However, premiums will take several years to fall as they are calculated on the basis of a company’s experience modification.
There you go! Now that you know what you used to believe about workers comp cost containment is not true, spread the word to your peers! To clear confusions and queries on workers comp cost containment or medical cost containment strategies, get in touch with the experts!
The author is an expert in workers comp cost containment programs and has years of experience crafting effective cost containment strategies for several clients over the years. For more details, visit http://ans-solutions.com