Workers' compensation costs account for a large portion of company budgets. Most companies have room for improvement in controlling workers' compensation costs through best practices. Reducing medical and lost time costs by promptly reporting injuries and returning employees to transitional work can significantly reduce costs. Effective communication with employees and medical providers also helps to control costs and litigation.

1. Workers’ Compensation Cost Control Over 60% of Companies have moderate to significant room for improvement in Workers’ Comp Best Practices* 2009 RIMS Benchmarking Survey

2. Why focus on WC? Companies spend 30 – 45% of their risk management dollar on WC – 2009 RIMS Benchmarking Survey 150 Million Employees are covered by WC WC is mandatory in all states (except TX) – 100 Million Employees Federal WC covers 50 Million employees (all civilian employees of U. S. government) Companies pay – via Deductibles and Premium – it makes a company less profitable Plus Indirect Costs - 7-10 times direct costs

3. More reasons … 90% of all countries have WC systems Recently, the 6 largest carriers said : “WC is line that causes us most concern over next 3 years.” EASY TO FIX PROBLEM - don’t wait

4. Who’s in Control? Only 21% of employers get restrictions on the FIRST medical visit …

5. Loss of Control Causes … Too many claims that last too long...

7. Transitional Duty Savings

8. Sales to Pay for Accidents Example: $25,000 divided by .05 = $500,000 Or www.ReduceYourWorkersComp.com/Calculator.php

9. Gain Management Commitment

10. Workers’ Comp is: Medical Costs Indemnity Costs Expenses Doctors Hospital Rehab Medication Lost Wages (all jobs) Scarring Impairment % Legal Investigation Bill Review CIB

11. In A Nutshell Some People Do Some Things In Some Locations Some of the Time Pushback Pushback Pushback Pushback Pushback Pushback

12. Bridge the Gaps People Gaps Procedural Gaps

14. Mail Dept vs. WC Dept What’s the difference between a postage stamp and a workers comp claim?

15. Someone is communicating with your employees!

16. Over and over, all day long !

17. YOU should be that someone !

18. This is an opportunity for 46% of companies!

19. Workers’ Compensation Employee Brochure

20. After We will discontinue your benefits if your treating physician or a medical examination finds your injury is not work-related. Before Example: Communication If it is determined by either your treating physician or an independent medical examination that your injury was not work-related or that you are not, in fact, disabled, we will file for discontinuance of your benefits and your claim will be controverted.

21. Focus Areas Management Commitment Lack of awareness, lack of resources Post Injury Response Procedures The core of cost containment Prompt Reporting of Injuries Within 24 hrs Working More Closely With TPA - Proactive use of Account Instructions, National Rollout

22. Focus Areas Return to Work Immediately after the incident Improved Communication Targeted to your employees & supervisors

23. Focus Areas Personnel & Resources Must be knowledgeable about cost containment WC as Key Performance Indicator Accountability at all levels Allocation System Cost sensitive and immediate -- carrot and stick

24. Focus Areas Effective Use of Surveillance

25. Focus Areas Nurse Triage at Intake Coordinate care early Peer to Peer Avoid pitfalls of IME process Medical Care Coordination - Shortest duration, lowest litigation rate, not least expensive

26. Benchmarks & Goals Number of Lost Time Claims to Total - < 30% Cost per FTE – $350 Number of Employees OOW - ? Lag Time – < 24 hours

27. Make It Count! No one wants to be listed as the worst!! Provides motivation to keep everyone involved in lowering the company’s WC costs.

29. Case Studies

30. Cost Reduction Timeline Get Scores, Recommendations and Assign Responsibilities – Week 1 Vendor Day and “ Chairside ” Visit– Week 2 Customize Documentation – Week 3 Go Live &Train Supervisors/Employees – Wk 4

31. Thank you for your time! Do not hesitate to call if you have any questions! Phone: 860-553-6604 Becki@ReduceYourWorkersComp.com

33. Return-to-Work Ratio GOOD BAD Days 60% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1-4 5-10 11-20 21-50 51-120 >120 3% 5% 6% 9% 18% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 6% 3% 0% 1% 0% 1-4 5-10 11-20 21-50 51-120 >120 90% Days

34. Return-to-Work Ratio 1-4 Days 5-10 Days 11-20 Days 21-50 Days 51-120 Days >120 Days 6% 3% 0% 1% 0% 90% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

35. Take Charge! Medical Certificate 1.doc Medical Certificate 2.doc WAF Form Marla 1.doc Marla 2.doc