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Workers’ Comp program saves Non-Profit $600,000


A non-profit blood distributor to over 75 area hospitals, employing more than 450 people.

» Situation

Since the company’s Experience Modification Factor reached an alarming 2.04, they were placed in the state’s assigned risk pool, as well as assessed ARAP surcharges.

» Assessment

Certified WorkComp Advisors (CWCAs) worked closely with the company and by analyzing loss run reports and Workers’ Compensation premium audit sheets discovered many open claims that had been overlooked by the insurance carrier. These claims were still on the books from 2000-2004 and carried large reserves. Compounding the situation was the fact that some of the claims were combined claims, whereas several employees had multiple injury claims outstanding. There were also a number of misclassifications on the payroll.

» Solution

Through techniques learned at the Institute of WorkComp Professionals, the CWCAs implemented a comprehensive plan that included recommending the designation of a primary person in the HR department to handle and track all claims, and who would also serve as a Return-To-Work coordinator to follow the claim through the Workers’ Compensation process. This plan was put into effect by educating the employer on the importance of finding the injured worker some productive, meaningful work within the organization, and emphasizing the need for the employee to return to work as quickly as possible, often within 3-5 days of the injury. In addition, the carrier was contacted and open claims were closed, jobs were reclassified, and the company was situated with a carrier and medical provider specializing in occupational claims common in non-profit agencies of this type.

» Result

As a result of the steps that were implemented, the company saw its Experience Modification Factor go from a high of 2.04 down to 1.46 in less than one year, resulting in a $200,000 yearly savings. By the end of the third year, the company has saved over $500,000 in total premiums, as well as receiving a $100,000 return premium from the insurance carrier for inaccuracies during the years 2000-2004.