California
Workers’ Compensation
Reforms
by Diana B. Henderson
President, The Henderson Group
As a business owner and employer, do you want to make the most of recent California workers’ compensation reforms? Here are some tips on impacting your workers’ compensation bottom line.
Timely Reporting
Whether compensable or questionable, studies done
by the California Workers’ Compensation
Institute (CWCI) have shown that timely reporting of a claim mitigates
the overall cost. Providing adequate and accurate information at the
time of reporting assists the claims handler in adjusting the claim and
providing the appropriate benefits. Questionable claims need immediate
attention so that the investigation activities can be completed within
the 90-day window for making a compensability decision. Work closely
with the claims handler to ensure that this “window of opportunity” is
not missed.
Take Control
SB899, signed into law on April 19, 2004, has provided an alternative
mechanism for managing medical utilization and costs in California
through the use of Medical Provider Networks (MPNs). Consult your insurance
carrier regarding the MPN and your role in the implementation process.
Lack of proper implementation can result in loss of medical control.
Ensure that you display the requisite informational posters and distribute
required notices and pamphlets. All new hires must be provided the
pamphlet entitled “Facts About Workers’ Compensation” no
later than the end of their first pay period to ensure even the most
basic form of medical control.
Return to Work
Incentives are available for providing transitional and permanent return
to work opportunities. Additionally, productivity, morale and overall
cost can be positively impacted through return to work programs. Please
note that if you employ more than 50 full time employees, the cost
of a claim could be impacted either positively or negatively depending
upon the ability to offer return-to-work to an injured worker (injured
on or after January 1, 2005). This is done via a 15% reduction or a
15% increase for each payment of permanent disability indemnity owed.
The reduction is applied if return to work is offered. Conversely,
the increase is applied if return to work is NOT offered.
Stay Engaged and Connected
Maintain and insist on high levels of communication with your injured
worker and claims handler. Continually monitor and review the status
of every open claim from inception to conclusion. Provide requested
information expeditiously to the claims handler.
Use Experts
If you lack expertise do not hesitate to consult with experts to assist
in managing this bottom line expense. For example, I provide consultative
services to insurance brokers and employers in the area of workers’ compensation,
including claim reviews and claims monitoring services. Clients who
engage my services continually experience a return on their investment.
Diana B. Henderson, President of The Henderson Group, formed her workers’ compensation and disability management consulting firm in 2001. Her past experience includes Vice President at Aon Risk Services in the National Practice for Workers’ Compensation and Integrated Disability Management, and National Manager of Workers’ Compensation for Hunt-Wesson Foods. Contact Diana at 949-417-5722 or visit www.thehendersongroup.net to learn more about her qualifications as an expert in the field of workers’ compensation and disability management, or to sign up for her free newsletter.