MSDs can take many forms but typically involve the back, wrist, elbow or shoulder and are often caused or aggravated by working in awkward positions, using repetitive motions, and making forceful exertions. Examples of MSDs include low back pain, carpal tunnel syndrome and tendonitis.

Here are nine ways employers can identify and address the problem:

1. Analyze your Workers’ Comp Loss Run

The risk exposure to MSD injuries increases with poorly designed workstations, tasks and hand tools. Your loss run report will help identify trends related to departments and workstations and so on. Also, by looking at the dates of hire, you can identify if there are groups such as newly hired employees who need more training.

2. Make hands-on demonstrations part of training

Workers must understand the nature of MSD risk factors and how to avoid injury. Oftentimes, videos or graphic presentations are used as training tools. Supplementing such information with hands on demonstrations can result in a greater understanding of the risks and ways to avoid them. The National Institute on Occupational Safety and Health (NIOSH) has a new training publication, Practical Demonstrations of Ergonomic Principles (.pdf) that includes a series of demonstrations organized by type of ergonomic principle, step-by-step methodology and a description of the materials needed.

3. Hear your employees

Nobody understands the discomfort, fatigue or aches associated with performing a task better than the employee who performs it. Simple solutions such as the location of supplies, height of work benches, storage restricting leg room, types of handles on bins, adjustable fixtures, job rotation etc., could make tasks easier and reduce the risk of injury. Moreover, greater involvement of employees means higher morale and commitment to proper procedures and early detection.

4. Consider ergonomic principles before purchasing tools

Those involved in the selection and purchase of new or replacement tools can benefit from the results of the three factors listed above. Considering ergonomic factors prior to purchase can go a long way in avoiding issues.

5. Recognize that health of employees play a role

As in many workplace injuries, an employee’s health can affect the ability to avoid MSDs. Factors that have been shown to increase an individual’s risk include:

Inflammatory disease, such as arthritis
Diabetes
Excessive weight
Hypertension
Stress
Smoking
Conditions affecting hormone levels, such as pregnancy or menopause
Advancing age
General poor physical condition

6. Understand Carpal Tunnel Syndrome

Several years ago there was great concern that the rise in computer use would mean an explosion in carpal tunnel syndrome (CTP) Workers’ Compensation cases. Today many experts agree that there is insufficient evidence to link CTP and computer keyboard use.

Studies suggest that age (more common among older individuals), gender (women are 3 times more likely to be diagnosed with CTS), heredity (narrow carpal tunnel in wrist) and medical conditions (diabetes, rheumatoid arthritis or thyroid imbalance) may contribute to the development of CTS, but in many cases it’s idiopathic. Surgery is often the most effective treatment.

According to an article in October 2011, Safety + Health, “Workplace Myth? Carpal Tunnel,” some work activities can contribute to the development of CTS. Repetitive manual work tasks requiring a forceful grip and use of vibrating tools can damage the median nerve in the arm. Loggers and meatpackers are subject to such injuries.

7. Manage upper extremity disorders related to computer use

While computer use is not linked to CTS, upper extremity disorders related to the use of keyboards are the second most common reason for work-related disability after back pain, according to Barry Simmons, MD, chief of the hand and upper extremity service in the department of orthopedic surgery at Boston’s Brigham and Women’s Hospital. Although surgery is often the most effective treatment for CTS, many upper extremity disorders can be addressed by modifying workstations and hand movements.

To reduce the risk of some upper-extremity disorders related to computer use, Harvard Medical School recommends:

When working on a keyboard or with a mouse, keep your wrists in a neutral position, rather than flexed downward or extended upward.
Take a break from computer work and stretch every hour. Between these breaks, take shorter breaks to rest your hands, either palms up on your lap or on a wrist rest.
Keep all items you may need access to – documents, telephone, keyboard, mouse and supplies – no more than 16-18 inches away to avoid awkward postures or reaching.
Place the computer monitor directly in front of you, at arm’s length.
Consider setting your keyboard on an adjustable tray that allows your forearms to remain parallel to the floor, with elbows bent at a 90-degree angle. Wrists should form a straight line with your forearms.
Keep your mouse close to the keyboard and at the same height. A padded wrist rest may help reduce strain.

8. Match employees to the physical demands of the job

Written job descriptions with the essential job functions and post-office pre-employment functional capacity evaluations can avert a bad hire and costly claims.

9. Use existing resources

Insurance companies and medical clinics often have free or low-cost services to perform a workplace evaluation. Ergonomic solutions can be simple and straightforward to make – even small changes such as altering the height of a chair can make a considerable difference.

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If you are unable to accommodate the permanent work restrictions, vocational rehabilitation benefits are available to the injured employee. These benefits may include job placement services, retraining or a loss of earnings claim.

In severe cases, permanent total disability benefits may be awarded to a worker that, as a result of the workplace illness or injury, can no longer do any kind of work.

When accommodating an injured employee with permanent work restrictions, it is important to know what your monetary exposures are and to understand all of your disability management options to control your costs.

Review Your Options
Prior to offering vocational rehabilitation benefits, you should review your options in accommodating the injured employee’s permanent work restrictions. Consider the following:

1. Conduct a review of all existing modified duty work positions that would secure permanent employment at the injured employee’s pre-injury wage.

2. Conduct a job task analysis to determine if the particular job identified would be within the assessed permanent work restrictions.

3. If permanent accommodations can be made, contact the employee via telephone to discuss, and follow up with a written job offer. The job offer should be sent via certified mail and include the title of the position, pay rate and starting date and time.

4. Obtain a second opinion or independent medical exam (IME) to confirm the medical condition and related permanent work restrictions.

5. The permanent work restrictions from the second opinion exam may differ from the treating physician. If this is the case, review the modified duty work positions that would fall within the permanent work restrictions. If applicable, extend a job offer.

6. If permanent work restrictions cannot be accommodated, the claims adjuster will refer the injured employee to a vocational rehabilitation vendor to help the worker conduct a thorough job search.

It is important to note that if at any time the injured employee fails to cooperate during the job search or retraining, benefits may be reduced or terminated.

For the first time since 1993 NCCI has adjusted the Spilt Point. Remember, the experience rating modification is affected by small losses more than by large ones because small losses are more frequent and predictable than large losses. The portions of all losses that are $5000 (split point) or less, which are termed “primary losses”, have the greatest influence in determining the experience modification. Losses in excess of $5,000 go into the “excess losses”.

Every loss is divided into a primary and excess portion. Since small losses – those less than the split point – have NO excess value, primary losses work as an indicator of loss frequency. For example, three $3,000 losses yields $9,000 in primary and $0 in excess.
Since large losses – those over the split point – always generate some excess value, they work as an indicator of loss severity. For example, one $11,000 loss yields $5,000 in primary and $6,000 in excess.
Primary losses are used at their full value in the mod calculation, while excess losses are reduced by the weighting factor. This follows the simple concept in insurance that “severity follows frequency.” So in the sample above, a company with several small losses will have a higher mod than a company with only one large loss. And, in the sample above, after the split point has moved to $15,000, both examples would have all primary and no excess losses!

This primary and excess split point will be increased to $15,000 over the next three years. After that, it will indexed for claim inflation annually, so you will potentially see a change in the split point each year.

What does this mean for you?
It is too early to give concrete information because NCCI hasn’t released final data on how the change will officially be implemented. They will likely adjust rates as well as other factors in the experience mod formula. The main reason of the change is the split point hasn’t been changed since 1993 and medical costs are much higher now compared to 1993.

1. The plan is to increase the primary loss split point to 10K in 2013, to 13.5K in 2014 and 15K in 2015.

2. This 15K could be adjusted up or down depending on how claims costs trend during that time.

3. Based on 2009 information 78.4% of all intrastate mods will move five points or less either way.

The main point of this will be the continued goal to try and keep claims medical only with no indemnity (lost wages, permanency rating, vocational rehab). Nebraska is one of many ERA(Experience Rating Adjustment) states that allow medical only claims to be discounted by 70% when they go into the experience rating formula.

If you don’t understand how this works don’t hesitate to contact us. When we speak at seminars on this subject we are amazed at how many people don’t know this. This simple rule is the backbone to your work comp program and why it is so important to make communication a key factor with your injury management programs as well as striving to have an effective return-to-work program.

This is why it is crucial that you work with a workers’ compensation expert with proven outcomes that have helped businesses increase their profitability. UNICO Group was the 2010 National Work Comp Agency of They Year. Employers should be working with an insurance agent who is a workers’ compensation expert who can put them on a path to achieving their minimum mod. Certified WorkComp Advisors have this expertise. With these changes, your minimum mod will be lower than ever and the amount of control you have over your workers’ compensation costs at an all time high.

If you have any questions don’t hesitate to contact Carl Zeutzius at UNICO Group at 434-7200.
czeutzius@unicogroup.com www.unicogroup.com

Preventing injuries is the main goal of a jobsite safety program, but it is only part of a contractor’s overall loss-prevention effort. An injury on the job has a human cost for the employee, but it also sets in motion the machinery of workers’ compensation, which can seriously affect a contractor’s costs. A proactive return-to-work program typically rewards the contractor with lower claim costs and a lower experience modification factor.

An effective safety program can keep a contractor’s workers’ compensation experience modification factor below 1, thus improving profitability. On the other hand, an experience modification factor exceeding 1 can cost a contractor a job by increasing the cost of workers’ compensation coverage. Understanding how to keep the experience modification factor low can pay off immensely for contractors.

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We will discuss how early intervention can save you and your company money in the long run. This seminar will help you recognize the advantages of early reporting of any musculoskeletal discomfort felt on the job. We will also speak on the importance of return-to-work programs, how to improve them and proactive steps you can take to keep the cost of claims down. UNICO will focus on communication and injury management. UNICO will also touch on the importance of your experience modification factor and important things you need to understand to help lower that factor.

Midlands will share incite on “Employer Shared Responsibility Provisions for Healthcare Reform. As we ring in 2013, employers should be focused on measuring their potential obligations under the shared responsibilities provisions of PPACA. Midlands will help answer some of the following questions: What are the provisions? When do they go into effect? Who is subject to the provisions?  What are the penalties for non-compliance?  How do you calculate? What will this cost my business?

CEO’s, CFO’s, HR Managers, Safety Managers, Business Owners and Work Comp Administrators should all attend.

Please note that this seminar is pre-approved for 3.0 hours of continuing education credit.

UNICO Group, Inc. is considered one of the leading insurance brokers in the country in helping companies lower their workers compensation costs. In 2010, we were named the National Work Comp Agency of the year. Please contact Carl Zeutzius at 402-434-7275 or czeutzius@unicogroup.com for more information.

Hurdle #1. Lack of information on what medical documentation an employer can request. Employees might not understand that their employers can request them to provide certain medical documentation in response to an accommodation request, and if they fail to do so, they might not be entitled to the needed accommodation.

To determine whether a particular employee has a disability, you may request medical documentation that shows whether the person has an impairment that substantially limits one or more major life activities. You may require that this documentation come from an appropriate health care or rehabilitation professional, including – but not limited to – doctors (including psychiatrists), psychologists, nurses, physical therapists, occupational therapists, speech therapists, vocational rehabilitation specialists, and licensed mental health professionals.

For more information on medical exams and inquiries, including forms for employers, individuals, and medical professionals, visit AskJAN.org/topics/medexinq.

Hurdle #2. Lack of clarification on determining the essential functions of a position. Employees might request the removal of an essential job function without realizing that this isn’t required as a reasonable accommodation.

You may require an individual with a disability to meet the skill, experience, education, and other job-related requirements of a position, including the performance of its essential functions with or without an accommodation. To determine whether a job function is essential, begin by determining if the employee in the position is actually required to perform the function. According to the Equal Employment Opportunity Commission, other criteria include: (1) a limited number of other employees available to perform the function or among whom the function can be distributed; and (2) the need for special expertise or ability to perform the function. To determine whether a job function is essential, consider these factors:

The employer’s judgment
A written job description prepared before advertising or interviewing applicants for a job
The amount of time spent performing the function
The consequences of not requiring a person in this job to perform a function
The work experience of people who have performed the job in the past and are currently performing similar jobs.

Although employers are not required to eliminate an essential function, lower production standards, or provide personal use items, they can do so if they wish. For information on identifying the essential functions of a job, including other relevant factors and examples, visit AskJAN.org/links/ADAtam1.

Hurdle #3. Lack of agreement on effective reasonable accommodations, including the role of temporary accommodations, leave time, and reassignment. Employees might reject an offer of reassignment, not realizing that reassignment to a vacant position is a form of reasonable accommodation when there is no accommodation available in the current position.

In most situations, you should first consult with the employee who requested the accommodation to clarify what the individual needs and identify the appropriate reasonable accommodation. The employee will often be the best resource for information about accommodation needs. By talking with the employee who requested the accommodation and obtaining medical information if needed, you should be able to identify the problem, which is the first step in determining effective accommodation solutions.

Once you have identified the employee’s limitations and abilities, the next step is to determine how they impact the employee’s ability to perform the job. To make this determination, consider what specific job tasks, work environments, equipment, or policies are creating barriers to successful job performance. It might sometimes be necessary to go beyond a traditional job description and consider other factors, such as the equipment used to perform a task, where the work is performed, and why certain policies are being followed.

Once you have identified the employee’s limitations and abilities and determined how they impact job performance, you’re ready to consider accommodation options, such as temporary accommodations, leave time, and reassignment.

Historically, Workers’ Comp pricing is cyclical; therefore, indications are that increasing costs will continue for four to five years. To minimize the impact of the market shift, employers should understand the market forces driving the changes, how they impact their Workers’ Comp program and what they can do. There are four major factors propelling higher costs:

Insurance companies, wanting to gain market share during a troubled economy, delayed increases even as their costs rose. They have paid out more in claims costs than they have taken in from premiums and low investment yields have not offset the underwriting losses. To return to profitability, insurance companies are raising premiums, reducing policy offerings and tightening underwriting standards, taking a particularly hard look at risks.

Workers’ Compensation rates continue to be driven by medical costs that rise faster than inflation and often faster than medical costs outside the Workers’ Comp system. Rampant narcotic abuse has also exacerbated the problem.

The National Council on Compensation Insurance (NCCI), which sets the standards for calculating Experience Modification Factors (Mods) used to determine Workers’ Comp costs, revised its standards significantly for the first time in decades. The three-year process that will commence on January 1, 2013 will change how Workers’ Compensation insurance providers calculate the Mod, which will affect premium rates for many buyers in states that use NCCI calculated Mods. Rising rates could be compounded by rising payroll in a recovering economy.

Employers with a keen grasp of Workers’ Comp premiums understand that “shopping” for a better rate is not the answer. Unlike most other insurance, Workers’ Comp functions like a Line of Credit. Use it and you will pay back the cost of the injuries plus more; in fact, employers will pay back two to three dollars to the insurance company for every dollar the insurance company pays in claims costs. In most states, an experience rating or Mod, an actuarially based method of determining whether your company’s losses (injury claims) are better or worse than expected, is used in calculating the premium.

Since the formula evaluates the company’s losses over three consecutive policy years, not including the most recent year, the 2013 Mod will use data from 2009, 2010 and 2011. Six months prior to the policy expiration date, the insurance company will submit data about the company’s claims during the previous policy year. If your renewal date is January 1, your Mod for 2013 is already determined. However, actively reducing your Mod today will reap reductions in Workers’ Compensation insurance premiums tomorrow.

While there are administrative steps that can be taken to tighten up costs, implementing safety measures and practices that reduce claims are the game changers regardless of industry or rate environment. Simply put, those employers who have a history of claims will incur greater costs than average. And it’s not just large claims. Frequency is a greater driver of costs than severity. Controlling Workers’ Comp is an ongoing business practice that should be consistent in hard and soft market. If a company has a good claims record, it is going to be impacted the least when premiums increase.

Here are three things you should know to avoid unpleasant surprises on renewal:

How the insurance company perceives your business
Insurance companies are increasingly taking a customized approach to risk, looking both at the risks that are inherent in your operations and the actions you have taken (and continue) to manage and control those risks. While claims history is important, the insurance company also looks at what is being done to reduce hazards and improve safety and how effectively these systems have been implemented. Good relationships with insurance companies always helps when it’s time to negotiate premiums and companies with robust cost containment efforts, including strong hiring practices, workplace safety and loss prevention programs, efficient claims administration, return to work programs, medical relationships that promote appropriate occupational treatments as well as responsiveness to recommendations from the insurance company, are in the best position.

Employers should also expect a level of commitment from the insurance company. Keeping you informed as to the cost of specific injuries, not only will help you monitor and control the claim, but also creates a valuable visibility and awareness of costs of claims for supervisors and managers.

In some cases, employers may look to move from guaranteed cost policies to loss sensitive plans that increase employers’ responsibility for claims management and often come with high deductibles. This is not for everyone; it is an area that requires a thoughtful, systematic approach to determine if the employer is operationally and organizationally prepared to take on the additional financial risk and administrative responsibilities and if they have the robust safety culture and programs necessary to be successful. Insurance companies and agents can help you understand the differences.

What affects the Experience Modification Factor (Mod)
The costs of claims are the driving force behind the Mod and insurance companies view the Mod as a good indicator of the strength of a company’s safety and claim management programs. A Mod of one represents the average risk for an average company in their industry and underwriters typically look to write those companies that perform better than average.

An important aspect of the Mod is the split-point between primary losses and excess losses, which effectively discounts the impact of a single large claim. As an example, five claims of $10,000 each will increase a Mod significantly more than a single claim of $50,000.

2013 takes on increased importance for NCCI-rated states as the first major change in the rating bureau’s method of calculating Mods will be implemented with a focus on the split point threshold. The existing experience-rating formula sets the primary loss amount at the first $5,000 of any claim, discounting any per-claim amount over $5,000. Effective January 1, 2013, the primary loss threshold increases to $10,000, January 1, 2014 to $13,500 and January 1, 2015 to $15,000 with a post-2015 automatic inflation adjustment.

This new rating system will heavily penalize employers with multiple claims under $10,000. Such employers should immediately strive to reduce the frequency of “claim cost drivers,” such as strains and slip and falls; implement an effective return-to-work program that reduces the cost of wage-loss benefits; institute hiring and training practices that foster safety and promptly report accidents to prevent avoidable medical costs and prolonged recovery time.

Mistake-free administrative records

While controlling underlying claim costs is the big picture in long-term, sustained savings, mistake-free administrative records can help in the short-term. If the policy renewal date is January 1, your 2012 policy will generally be audited from Jan. 15 to March 1, 2013. It’s important that your records be in order:

Properly applying payroll to the correct class code directly affects the premium. Employers that take the time to place classifications and/or job titles into the payroll records provide helpful information for the auditor; however, they need to be prepared to defend the classifications. Understand the state’s exclusions from calculation remuneration and keep this information separate from payroll. For example, in many states severance pay is not treated as remuneration and overtime can be reduced to straight time.

Understand how employer perks are treated. Year-end often means bonuses or gifts to employees. Cash or cash equivalents, such as gift cards are included in remuneration, but employer-provided tickets to entertainment events, an airline flight, employer-provided automobiles, and club memberships are excluded. Be vigilant about certificates of insurance from subcontractors, temporary agencies or employee-leasing companies.

The potential for mistakes and overcharges in Workers’ Compensation is higher than any other type of insurance. The items listed above only scratch the surface. Errors commonly occur in other areas as well, such as the handling of executive officers pay, unusual exclusions, multiple state coverage, etc. Proper preparation for the audit is essential.

Workers’ Compensation costs directly affect the bottom line. Companies that are committed to an integrated approach of cost containment encompassing all aspects of Workers’ Compensation will emerge with the competitive advantage.

Good Housekeeping — Preventing Slip and Fall Injuries this Winter and Beyond

Slip, trip and fall accidents are a leading cause of injury across many industry segments including health care, manufacturing, trucking and general office environments. Good housekeeping practices, routine facility inspections and preventative maintenance programs are all effective ways of preventing these injuries and lowering the cost of workers’ compensation insurance, especially during the winter months.
Key Players

Facility, janitorial and maintenance staff play a key role in keeping parking lots, sidewalks and interior walking surfaces clean and well-maintained. Management should routinely meet with these employees to review current work practices and procedures. There should also be open discussions regarding potential slip and fall exposures in the workplace and how facility inspections, preventative maintenance programs and housekeeping practices can be fine tuned to focus on winter-related exposures.
Outdoors

Inspections and snow removal procedures should be in place in an effort to prevent fall injuries for employees and visitors.

Parking lots, sidewalks and outdoor steps need to have any snow accumulation removed in a timely manner and have salt or other surface treatments applied to melt icy spots.
Extreme winter environmental factors can be harsh on blacktop and concrete surfaces so ongoing inspections need to be performed to identify potholes and cracks that may have formed.
Temporary barricades and safety cones should mark unsafe areas until appropriate repairs can be made.
Preventative maintenance programs and safety inspection checklists should be used and should include areas where there has been a history of slip and fall incidents.
Lighting systems covering parking lots and sidewalks should be checked to verify they are working properly and identify any electrical ballast systems that need repair. Deficient lighting makes it more difficult for employees to see patches of snow and ice.
Entrance steps and handrails need to be continuously inspected for damage.
Slabs of sidewalk concrete can be lifted by trapped water freezing that creates a lip between the sections. These sections may need to be ground down with specialized machinery to create a smooth transition area.
Drain pipes, grate covers and catch basins may become clogged with debris or ice dams, causing water from melting snow and ice to back up onto walking surfaces and refreeze.

Inside

Interior walking surfaces, such as entrances, foyers, reception areas, hallways, and stairwells, are all areas where serious slip and fall injuries have occurred, and special attention should be paid to housekeeping in these areas.

The occurrence of these injuries mainly takes place during the winter when employees and visitors track snow, ice and water throughout hallways, stairwells and other interior areas.
These surfaces can quickly accumulate snow, water and excess salting materials, which need to be cleaned often.
Heavy foot traffic causes entrance mats to roll up and become a major trip hazard.
Floor mats also become saturated with snow and water and may require replacement during the day. Extra mats should be kept on hand and changed out as needed.

Tools to Put into Place

Written schedules, housekeeping checklists, maintenance procedures and other standard forms are all effective ways to monitor hazardous areas. Computer software applications are available for large facilities or customized checklists can be created easily by your own staff. Use your safety teams, wellness committees and facility personnel to develop your own materials to identify the specific areas to place on a housekeeping checklist.

Our Good Housekeeping Guidebook will help keep your workplace safe by providing important information on best housekeeping practices. Accident Fund policyholders can log into our website to access this guidebook as well as a variety of additional safety tools and tips.

Do your employees know what the next step is after one of them slips and falls on a grease spot and is injured? If you don’t communicate the process for reporting injuries and filing workers’ compensation claims with them, you most likely will be paying more than you should for your workers’ compensation coverage.

While employers spend money on loss control efforts, incentive programs and safety programs, they often fail in one of the key areas to help control workers’ compensation costs: managing the workers’ compensation process. True, it is important to focus on injury prevention, but often that isn’t enough. There are two more areas that employers need to give their attention to: managing the injury and managing the return-to-work process.

Injury reporting is a key factor in shaping the outcome of any employee injury. The sooner an injury is reported, the sooner a medical assessment can be made available and the sooner an employee is on the right track to recovery. It has been proven in several studies that lag time directly impacts the costs of claims. It is imperative that you stress to employees and supervisors that any employee injury must be reported immediately. This not only benefits the employer but the injured worker as well.

Do your injured employees understand what will happen when they are injured? If you are not providing them with a pre-made injury packet then you already are falling behind in the process. This packet can help the employee understand the process, your expectations, and the return-to-work policies, and can help reduce any possible frustration with you, the doctor or the insurance company. It can help develop trust and show the employee that you care and that you are committed to quickly resolving work-related claims. There are other key components to the injury packet, but it is important to remember that outlining the expectations can help you lower claim costs.

When the injury is reported, what steps are you taking to ensure the injured worker can return to work as soon as possible? It is crucial that communication is set up between the injured worker, the doctor, the claims adjuster, supervisors and your agent to help ensure the injured worker can get back as soon as possible. If this isn’t done correctly, it directly impacts the cost of the claim and your company’s bottom line.

Something as simple as sending a card or making a phone call to an injured worker at home can help get him or her back to work sooner. It’s not uncommon for injured employees to feel depressed and alone. Showing them that you are thinking about them can go a long way in accelerating the return-to-work progress and perhaps keep their mind off possible litigation.
Safety and risk management are important in preventing injuries, but are your supervisors trained in workers’ compensation, to the point that they know and understand their role after an injury occurs? If your supervisors aren’t trained in this area, it could hurt your company’s profitability. Ensure they been trained in the following areas:

The direct and indirect costs of past injuries and how they affect your experience modification factor.
The minimum experience modification factor for your company. This can show how much money is involved with an inflated experience modification factor. The difference between your current experience mod and your minimum mod is called your controllable mod. The controllable mod will show how much money can be saved if claims can be reduced as well as indicate the potential dollar savings that can be utilized for special safety programs, equipment or other safety incentives. This information should be shared with your safety committee as well. Based on our experience, we find that less than 10 percent of companies are doing this now.
The importance of having a claim remain “medical only” with no lost time. This is why prompt reporting of injuries is so crucial; many states are ERA (experience rating adjustment) states. This means that medical-only claims are reduced 70 percent when they are calculated for the experience modification factor. This is why return-to-work programs are so important and why it is imperative your supervisors play a key role in initiating a successful RTW program.

Communication channels must be working along several fronts to keep workers’ compensation costs low and return employees to work. This includes communication from top management to supervisors, supervisors to employees, employees to doctors, return-to-work coordinators to doctors, return-to-work coordinators to employees, return-to-work coordinators to claim adjusters and so on.

Very often, companies do a great job with preventing injuries but then incur costs they could have avoided because they simply have overlooked the injury management aspect. We have seen many examples where companies have increased their profitability just by improving their injury management programs, particularly supervisory training.

Carl Zeutzius, CIC, is a certified work comp advisor (CWCA) and director of sales and marketing for UNICO Group, an independent insurance, risk management and financial services group based in Lincoln, Neb. He has over 20 years experience in the insurance industry. He can be reached at czeutzius@unicogroup.com or 402-434-7200.