Business Insurance
Quick returns
How return-to-work programs reduce workers’ compensation expense
By Elizabeth Grace Saunders
Smart Business Atlanta | March 2008
Jim Bowers
Claims workers’ compensation large loss
team lead
Westfield Insurance
When it comes to workers’ compensation costs, even the most comprehensive safety programs won’t completely eliminate workplace accidents.
“When an injury happens on the job, many
employers feel like they lose control,” says
Jim Bowers, claims workers’ compensation
large loss team lead at Westfield Insurance.
“Through a partnership with your insurance
carrier, you can develop a return-to-work
program that will keep you in control.”
Smart Business spoke with Bowers about
the positive impact of return-to-work programs on employers and their employees.
Why should businesses have return-to-work
programs?
The National Council on Compensation
Insurance (NCCI) indicates that average
indemnity costs rose 5.5 percent in 2006,
which was the largest increase in five years.
This trend is expected to persist. At the same
time, NCCI reports medical costs continue to
increase at near double-digit rates.
The best way to prevent these workers’
compensation increases in your business is
through a return-to-work program. The goal
of these programs is to have employees with
on-the-job injuries or illnesses back doing
meaningful, productive work as soon as is
safely possible. This proactive strategy can
lead to:
- Reduced indemnity benefit costs
- Decreased overall recovery period and
medical costs in the typical claim
- Contained workers’ compensation insurance premiums
- Good will through reinforcing employer
concern for employees
- Reduced or eliminated costs associated
with the recruitment and hiring process
- Increased retention of a trained, skilled
and knowledgeable work force
- Maximized operational productivity
- Boosted employee morale
- Decreased likelihood of malingering
- Less claim litigation
Study information published by Workers
Compensation Research Institute (WCRI)
showed a successful return-to-work program
could improve the average return-to-work outcome by as much as 15 weeks. Although
benefit levels vary by state, at a weekly benefit level of $700, this translates into direct savings of $10,500. WCRI data also show that
workers returning to work within one month
are more likely to remain employed, while
those who remain off work for more than six
months are far more likely to remain unemployed long term.
Finally, WCRI study information documents a significant opportunity for business
owners to realize substantial financial impact
by adopting these systems. The costs associated with a valued employee not returning to
work can quickly affect customer relationships, productivity and operating results, as
well as insurance premiums.
What’s the benefit for the injured employee?
For the hurt worker, the advantages of a
return-to-work program are just as significant as they are for the employer. Returning
to safe, productive work as soon as possible
provides the injured employee with these
favorable outcomes:
- Improved self-esteem
- Decreased financial hardship
- Reduced stress, boredom and depression
- Less physical and mental deconditioning
- Alleviated concern about continued employment and employment benefits
- Shortened overall recovery time
- Continued positive relationships with fellow employees
How should organizations develop them?
First, organizational support and commitment need to exist so the program can have
the intended impact. Businesses should then
look for an insurance carrier to partner with
long term that has the experience and
resources to help them develop, implement
and maintain an effective program. A meaningful program includes a few key steps:
- Develop a formal return-to-work policy
and document it in writing.
- Consider all applicable local, state and
federal requirements, such as ADA and
FMLA, and consult with the appropriate legal
counsel to confirm complete compliance.
- Designate a coordinator to be responsible for ongoing program administration.
- Build procedures for reporting injuries,
referring for medical care and communication between the involved parties.
- Create forms and documents, such as a
Job Analysis Form, a Return-to-Work
Coordination Sheet, a Return-to-Work
Telephone Log, a Sample Transitional Duty
Physician Questionnaire and a Sample
Transitional Duty Job Offer Letter.
- Complete a job analysis or a job description for each position. Consider transitional
duty opportunities that may exist in addition
to current positions.
- In states in which the employer has medical control, meet with your designated medical provider to review your program.
- Communicate your return-to-work program with all employees during the initial
rollout, as part of the new hire process and at
regular intervals on an ongoing basis.
JIM BOWERS, CPCU, AIC, AIM, SCLA, AIS, is the claims workers’ compensation large loss team lead at Westfield Insurance. Reach
him at jimbowers@westfieldgrp.com or (330) 887-6529. Westfield Insurance provides commercial and personal insurance services to
customers in 17 states. Represented by leading independent insurance agencies, the product we offer is peace of mind and our promise
of protection is supported by a commitment to service excellence. For more information, visit www.westfieldinsurance.com.
