As you know, L&I increased rates for Washington employers in January by 4.9% on average. If you’ve attended one of our recent webinars, you know rate changes fall into the category of things outside of your control when it comes to workers’ compensation costs.
You might also recall the ridiculously busy but truthful graphic from our webinars, focused on factors employers can control to minimize costs.
Let’s explore the top strategies, or levers you can pull, to manage claim costs.
Ensure Robust Safety Counsel
Preventing claims is paramount for cost containment. Injury prevention always starts with establishing and maintaining a culture of care since at its core, safety is about caring for and serving others well. Having safety counsel who can support you in this endeavor is fundamental. Moreover, if your safety partner possesses the capability to refine your loss-prevention strategies through the utilization of claims data analytics (discussed below), you’ll be well-equipped to both avoid and minimize costly claims.
Deploy Kept-on-Salary (KOS)
We’ve penned numerous articles on KOS covering the ideal time to use it, its strategic application (not as a mandate), and more recently hosted a webinar on why and when to use it. We advocate for using Kept-on-Salary when the numbers say to do so. As this is difficult to determine on your own because it’s time-consuming and requires appropriate analytical tools, having a competent team to assess each claim for KOS can lead to substantial benefits and cost savings.
Use Light Duty (LD) and Return-to-Work (RTW)
While this strategy is well-known, it remains a crucial element in reducing high claims costs and most often benefits the employer AND the employee. Count on your claims manager for help with executing LD/RTW well, as even simple mistakes can be costly. If you haven’t already prepared a grab n’ go packet (mentioned in our LD/RTW webinar) for potential injuries, it’s a great time to move this task up on your to-do list.
Review Data Analytics Often
How can you drive down workers’ comp costs if you’re unaware of your performance and the necessary changes to enact? Don’t overlook the importance of working with a proficient partner who can consistently analyze your claims data, offer crucial insights into injury trends and cost-driving claims, and suggest areas for improvement. Rely on the people who do this work all day and everyday, committed to assisting you in achieving optimal outcomes.
Choose your workers’ comp partner
Ultimately, you have the freedom to select the ideal workers’ comp partner that suits your business’s unique needs. Whether you decide to join a Retro group or not, finding a partner who is deeply committed to serving you well and lowering your workers’ comp costs is vital. Not sure where you stand? Check out our recent article on rating your satisfaction with your workers’ comp partner.
For more cost-saving strategies, let’s talk! We’re always excited to discuss everything related to worker’s compensation.
