The Stakes: A wholesaler with 50 employees was facing a Mod jump from 0.92 to 1.15. The owner thought he was being “nice” by letting an employee with a hand injury stay home for four weeks after surgery, fully paid by insurance.
The Investigation: The Advisor explained the math: Indemnity payments (paying people to stay home) are the primary driver of Mod increases. The doctor had prescribed time off only because he didn’t know light duty was an option.
The Breakthrough: The Advisor contacted the doctor and explained the light-duty tasks available. The doctor changed the status from “total disability” to “restricted duty.”
The Result: The employee returned to work days after surgery. The company avoided a 10% Mod increase and saved $5,000 immediately.