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Workers Comp claims
Benefits & Compensation
Workers Comp claims
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
Has anyone noticed an increase in Worker's Comp claims and the severity of claims and an increase in the attempts for disability since the US has experienced economuic problems?
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Forums » Topic Forums » Benefits & Compensation » Workers Comp claims
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Workers Comp claims
posted at 8/31/2009 2:04 PM EDT
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Posts: 1047
First: 4/11/2002 Last: 9/14/2011 |
Not to sound like a salesman, but this is why companies should have a short-term disability (STD) policy. This type of policy will cover the non-occupational injuries and sicknesses that employees come down with. When companies don't have an STD policy, this is when questionable claims now start popping up under the WC policy.
Why is this an issue? WC claims can follow you around for up to 5 years and will affect your modification number. So not only will this adversely impact your company in the short-term, but it will do so in the long-term as well. Group STD policies do not work the same way, especially for employers will less than 50 employees and possibly 100 employees. Carriers do not necessarily look at claims experience when providing rates. So if you have bad claims experience over the course of the year and it affects your renewal, you always have the ability to jump ship and go to a different carrier. If you have more than 100 employees, claims experience will be a factor in determining rates with a new carrier, however, you are almost always able to find a carrier willing to take a chance that your claims experience will turn around. And when I say a group STD policy, I don't mean AFLAC or Colonial. These policies are a joke when you compare the benefits and cost to a standard group STD policy. The latter can also be rolled out on a voluntary (employee pay all) basis and while you will need to meet minimum participation requirements, it's not that difficult considering these policies tend to be 50% to 80% less expensive than their voluntary, individual counterparts. I think any companies that offer their employees individual disability policies by companies like AFLAC and Colonial are doing their employees a great disservice. |
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Workers Comp claims
posted at 9/1/2009 7:18 AM EDT
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Posts: 62
First: 9/13/2005 Last: 11/19/2010 |
Why would an employee choose to enroll in a STD policy and pay 100% of the premiums when they can file a questionably work-related claim on their employer's work comp policy for free instead? STD might be a deterrant if the company pays the premium. I'm not so sure otherwise. |
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Workers Comp claims
posted at 9/1/2009 7:31 AM EDT
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Posts: 62
First: 9/13/2005 Last: 11/19/2010 |
There are definite benefits to an STD policy. What I'm saying is, in this economy, I don't see employees lining up to enroll in more insurances and pay more in premiums! And, I don't see employers spending more on premiums or benefits either. |
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Workers Comp claims
posted at 9/1/2009 7:38 AM EDT
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Posts: 62
First: 9/13/2005 Last: 11/19/2010 |
I better re-phrase that. Employers ARE spending more on insurance and benefits because the cost is increasing!! Adding new insurances like STD and paying 100% of the premium will be difficult for some employers to absorb in this economy, although there may be a benefit in a reduction of questionable claims filed on their work comp policy. |
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Workers Comp claims
posted at 9/1/2009 8:05 AM EDT
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Posts: 1047
First: 4/11/2002 Last: 9/14/2011 |
From my perspective, AFLAC and Colonial are pretty popular products. It's pretty comical, however, my industry loves to throw anything against the wall and see what sticks simply for the sake of making a buck.
I agree, most employees aren't probably looking to enroll in additional insurances and pay 100% of the premium, however, if an STD policy only costs $10 to $15 per month, I don't see that as a huge deduction, especially for the value it provides. Conversely, to get comparable coverage under one of those swell individual disability policies, it costs $50 to $75 per month. Also keep in mind that if the employer paid 100% of the cost of such a policy, the premiums would be even less. And employers could provide the insurance on a partially contributory basis as well. And as far as why employees would enroll in such a policy, as Carl points out, the policy not only covers accidents, but illnesses. An employee isn't going to be able to file a cancer or pregnancy claim under a WC policy period. |
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