When it comes to manufacturing Retro groups in Washington, employers have several to consider. They differ, often significantly, in terms of their service offerings and what they require of their members. While we typically focus on the positive aspects and numerous benefits of these programs, it’s important to acknowledge common concerns expressed by Retro participants as well. By understanding these common concerns, you can make more informed decisions regarding your involvement with a Retro group.
Three Common Concerns About Retro Groups
1: Lack of communication
Feeling in the dark and struggling with what feels like one-way communication is a tough place to be. Concern over lack of communication may include delays in responding to inquiries, difficulties in reaching your claims manager, or inadequate updates on the status of claims or program performance.
Alternatively, you should have a claims manager who proactively takes the initiative to reach out, ask for documentation needed, respond to your emails or phone calls promptly, and ensures you are informed throughout the entire claims process. You should also have a partner who helps you stay informed about your performance by receiving quarterly reports that offer valuable feedback, enabling you to make changes as needed.
2: Inadequate/non-strategic claims management
Here’s a big one, and another common complaint of Washington Retro participants. Employers often express frustration with a Retro group’s handling of workers’ compensation claims such as slow processing of claims, lack of strategic partnership, difficulty in obtaining necessary documentation or information, and disputes regarding claim allowance or rejection.
The significance of immediacy and proactiveness in claims management cannot be overstated, as time is of the essence. Ideally, your claims manager will reach out to you upon receiving a claim and stay in constant communication to swiftly and skillfully move a claim to closure. Mishandling or delays in processing claims can result in avoidable costs. They should also help you understand when different strategies like Kept-On-Salary or light-duty can help you save money.
3: High administrative fees vs. value
Retro groups typically charge administrative fees for their services, which are often a percentage of workers’ compensation premium. Some employers have complained about high administrative fees that they perceive as disproportionate to the value provided or as not being aligned with the level of service received.
These are valid concerns, especially if you have encountered any of the issues we discussed earlier. But how do you assess value?
Consider whether your Retro provider is providing intensive safety measures to prevent injuries in the first place. Are they leveraging analytics to evaluate previous claims, formulate innovative strategies, and guide your choices regarding KOS (Keep on Salary) or light-duty options? A comprehensive and proactive approach can make all the difference. Quite frankly that old saying “you get what you pay for” is relevant and applicable. Ultimately, as you experience exceptional service and observe a steady decline in your workers’ compensation costs, concerns regarding fees will likely dissipate.
If you find any of these common concerns relevant to your experience, it could be a good time to pause and evaluate the available options. And check out our mini video series on, “5 things you should be hearing from your Retro provider.”
