Rancho Mesa's Alyssa Burley and Associate Account Executive Jack Marrs talk about timely reporting of workers’ compensation claims to lower their overall costs.

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Director/Producer/Host: Alyssa Burley

Guest: Jack Marrs

Editor: Megan Lockhart

Music: “Home” by JHS Pedals, “News Room News” by Spence

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Transcript

Alyssa Burley : Hi, this is Alyssa Burley with Rancho Mesa Media Communications and Client Services Department. Thank you for listening to today's top Rancho Mesa News, brought to you by our safety and risk management network, StudioOne™.

Welcome back, everyone. My guest today is Jack Marrs associate account executive with Rancho mesa. He specializes in Risk Management for human services organizations. And today we're going to talk about timely reporting of workers compensation claims to lower their overall costs. Jack, welcome to the show.

Jack Marrs: Thanks for having me, Alyssa. 

AB: Leading into 2022, it's important for employers to examine their workplace injury reporting practices, this might mean taking a look at their current policies if they have any, and evaluating how quickly they're actually reporting workers compensation claims to the carrier. As a general rule, how soon should an employer report a workers compensation claim?

JM: Great question, Alyssa, and one we hear often. Employers should report all injuries including medical-only workplace injuries to their workers compensation insurance company. Best practice dictates all claims should be reported within the first 24 hours in order to prove treatment to the injured worker and reduce the overall cost of the claim to the employer.

AB: What do workers compensation carriers say about employers paying for small claims out of pocket instead of reporting them?

JM: A recent conversation with a workers compensation carrier underwriting manager highlighted the fact that some employers are choosing to pay for occupational clinic visits rather than filing a claim. Assuming that small medical-only claims will negatively impact the Experience Modification factor, Ex Mod, and ensuring workers compensation premiums. However, an actuality claims of $250 or less do not impact the Ex Mod. Not only are employers legally required to report workplace injuries, but those small claims can easily turn into something bigger, if not reported in a timely manner. Further, the reporting of all incidences can assist a company in identifying trends and root causes, thereby allowing proactive measures to be taken. Rancho Mesa's Proprietary Key Performance Indicator, KPI Dashboard, helps track these trends and compare a company's performance to that of their industry. Can we include a link somewhere so listeners can request the KPI?

AB: Of course we'll put a link in the episode notes. Also, the Risk Management Center's Incident Track has a screen dedicated to finding trends. So it's important to include all those medical only incidents and any near misses too, so that the system can identify where there might be issues. Will you explain why the longer an employee waits to report a claim the higher the claim ends up costing?

JM: Yeah, and insurance carriers ability to investigate a claim determines compensability and identify fraud may be hindered as details of the incident fade. Witnesses may no longer be available or key evidence may not be preserved. According to Liberty Mutual, a 20-day delay in reporting an injury can lead to a 33% increase in lost time, 52% higher average cost claim, and 152% increase in litigation rates. This makes sense when you consider that a delay in seeking treatment could cause an employee's condition to worsen, extending recovery time and temporarily disability payments. Lastly, an employer's paying a medical bill will pay much more than a worker compensation carrier would pay for that same bill as insurance companies negotiate a reduced fee schedule for occupational injuries.

AB: So bottom line, failure to report workplace incidents in a timely manner can put any organization and its employees at risk for no benefit at all. Jack, if listeners have questions about reporting incidents or their workers compensation, what's the best way to get in touch with you?

JM: I can be reached at 619-486-6569 or my email which is JMarrs@RanchoMesa.com.

AB: Jack, thank you for joining me in studio one.

JM: Thanks for having me, Alyssa.

AB: This is Alyssa Burley with Rancho Mesa. Thanks for tuning into our latest episode Produced by StudioOne™. For more information, visit us at RanchoMesa.com and subscribe to our weekly newsletter.