Work Comp – Risk Management 365

New Workers’ Comp Reimbursement Rules Take Effect In Michigan

Changes in how doctors are paid for treating some injured employees covered by workers’ compensation are expected to address the long-term use of pain relievers and help cut medical costs for Michigan job providers, according to state officials.

The new rules prevent reimbursements for opioid treatment beyond 90 days for non-cancer-related chronic pain unless physicians meet detailed reporting requirements, the Michigan Workers’ Compensation Agency said.

via New Workers’ Comp Reimbursement Rules Take Effect In Michigan.

Business Case for Safety and Health

Employers that invest in workplace safety and health can expect to reduce fatalities, injuries, and illnesses. This will result in cost savings in a variety of areas, such as lowering workers’ compensation costs and medical expenses, avoiding OSHA penalties, and reducing costs to train replacement employees and conduct accident investigations. In addition, employers often find that changes made to improve workplace safety and health can result in significant improvements to their organization’s productivity and financial performance.

via Safety and Health Topics | Business Case for Safety and Health – Benefits.

Injury Risk to Home Building Workers

Home building is physically demanding work and manual material handling may be the most difficult part of the job. Manual material handling includes all of the tasks that require you to lift, lower, push, pull, hold or carry materials. These activities increase the risk of painful strains and sprains and more serious soft tissue injuries.

Soft tissues of the body include muscles, tendons, ligaments, discs, cartilage and nerves. Soft tissue injuries cause workers pain, suffering and lost income. They can also restrict non-work activity, like sports and hobbies. Builders’ and employers’ costs include loss of productivity and high workers’ compensation insurance premiums.

via CDC – NIOSH Publications and Products – Simple Solutions for Home Building Workers (2013-111).

The Cost of Workplace Injuries and Illnesses

In addition to their social costs, workplace injuries and illnesses have a major impact on an employer’s bottom line. It has been estimated that employers pay almost $1 billion per week for direct workers’ compensation costs alone. The costs of workplace injuries and illnesses include direct and indirect costs. Direct costs include workers’ compensation payments, medical expenses, and costs for legal services. Examples of indirect costs include training replacement employees, accident investigation and implementation of corrective measures, lost productivity, repairs of damaged equipment and property, and costs associated with lower employee morale and absenteeism.

via Safety and Health Topics | Business Case for Safety and Health – Costs.

How will a healthy work environment benefit my bottom line?

Research shows that healthy people working in a healthy environment are key to business success. That’s because a healthy workplace improves productivity and reduces employers’ costs.

A healthy workplace will:

Improve employee health outcomes
Make it easier to attract and retain qualified employees
Lower absenteeism
Reduce health benefit costs
Enhance morale
Reduce risk of injury
Improve job performance

via What Makes a Healthy Work Environment? – Healthy Environments.

The Real Costs of Accidents

Accidents are more expensive than most people realize because of the hidden costs. Some costs are obvious — for example, Workers’ Compensation claims which cover medical costs and indemnity payments for an injured or ill worker. These are the direct costs of accidents.

But what about the costs to train and compensate a replacement worker, repair damaged property, investigate the accident and implement corrective action, and to maintain insurance coverage? Even less apparent are the costs related to schedule delays, added administrative time, lower morale, increased absenteeism, and poorer customer relations. These are the indirect costs — costs that aren’t so obvious until we take a closer look.

Studies show that the ratio of indirect costs to direct costs varies widely, from a high of 20:1 to a low of 1:1. OSHA’s approach is shown here and says that the lower the direct costs of an accident, the higher the ratio of indirect to direct costs.

via Safety and Health Management Systems eTool | Module 1 – Safety and Health Payoffs – Costs of Accidents.

Materials Handling: Heavy Lifting

Lifting heavy items is one of the leading causes of injury in the workplace. In 2001, the Bureau of Labor Statistics reported that over 36 percent of injuries involving missed workdays were the result of shoulder and back injuries. Overexertion and cumulative trauma were the biggest factors in these injuries.

When employees use smart lifting practices and work in their “power zone,” they are less likely to suffer from back sprains, muscle pulls, wrist injuries, elbow injuries, spinal injuries, and other injuries caused by lifting heavy objects.

Weight of Objects
Awkward Postures
High-Frequency and Long-Duration Lifting
Inadequate Handholds
Environmental Factors

via Ergonomics eTool: Solutions for Electrical Contractors – Materials Handling: Heavy Lifting.

Employers Pay More for Workers Comp

Employers with poor loss histories will pay even more for their workers comp coverage again in2015 as most states changed the way premiums are calculated starting in 2013.

But policyholders with proven risk management practices and safety programs that reduce workplace injuries will benefit from NCCI Holdings Inc.’s change in the methodology determining an individual employer’s experience modification factor, experts say.

2013 marked the first time in two decades that the rating organization has updated the “split point” used in its experience rating plan to more accurately reflect individual employer loss frequency and severity. An employer’s ex-mod factor has a significant affect on employer expenses because underwriters rely on them to adjust premiums with credits or debits.

via New NCCI methodology will change premium calculations | Business Insurance.

The Perils of Workers Comp Claim Handing in Silo’s

The overlapping and often conflicting requirements of ADA, FMLA, Workers’ Comp and a plethora of state laws are an administrative nightmare. There are differences in eligibility, leave lengths, job reinstatement requirements, access to medical information, fit-for-duty certifications and so on. More than one law can affect the same situation and each must be considered. For this reason, a “silo” structure in which separate areas manage Workers’ Compensation, disability and health can be problematic, inefficient and duplicitous. Yet,at the same time, this quagmire adds to the challenge of integrating occupational and non-occupational RTW. Ultimately, the entire organization is responsible for the knowledge possessed by any part of the organization and an employer needs to determine the best process for its needs and circumstances.

via IWCP: Institute of WorkComp Professionals.

The Hidden Costs of Accidents at Work

via Safety and Health Management Systems eTool | Module 1 – Safety and Health Payoffs – Costs of Accidents.