Reducing Workers’ Compensation Claims, Costs and Lost Work Days

Workers’ compensation claims coupled with lost production and related costs burden our economy to the tune of about $80 billion a year. Workers’ comp insurance companies state that musculoskeletal disorders (MSD) represent 55 percent of claims and 65 percent of costs. Employers can pay out $1 million per year per 500 workers for the costs associated with MSDs. Commentary by Janet Kadlecik, OTR of Work Capacities LLC

Detecting the Cause

It is always challenging for health providers, case managers and company safety officers to know exactly when and how a work related injury happened.

The number one factor that determines the cost of a work comp claim is often not the severity of the injury or the cost of medical management. The top issue that determines the cost of a claim is the “attitude” of the injured worker’s supervisor to whom the worker reports the problem.

Therefore, the most important cost-determining factor is the supervisor’s response to the initial complaint of pain. How the supervisor reacts when the injured worker reports the accident occurred at work determines whether the worker will commit to getting better or will have to deal with conflict over the claim. Production supervisors often assume that MSD claims are faked or occurred outside the course of work. Management may refuse a worker’s return to work until the worker is 100 percent recovered. Co-workers may not believe the claims of the worker and this creates tension throughout the workplace, resulting in slower injury recovery.

Management Mistakes

Good knowledge and background of MSD from the supervisor can totally change the atmosphere of the workplace. This can be achieved through neck-arm and back MSD school programs as well as supervisor training in managing the injured worker. It is a fact that 90 percent of work comp claims are legitimate, but this can become complicated if there are conflicts caused by wrong assumptions within the workplace. Realization that injured workers do not have to be 100 percent recovered has a positive effect on both company profits and morale (modified/ light duty). Educating co-workers during ergonomic team training will help to show them that most claims are legitimate.

Companies need to understand the consequences of not providing adequate modified duty can affect the injured worker’s morale. 90 percent of OSHA inspections are generated by a call from an angry worker. Companies should not set a goal of no reported injuries; rather, they should use no lost time as a goal.