Does your organization make timely reporting of workers’ compensation claims a priority? Studies have demonstrated the costly effects of delayed reporting for organizations in the United States. The costs of delayed reporting will vary by employer based on the fact that each claim is different, each employee is different, and each injury may involve different circumstances. However, regardless of the nature of your business there is a direct correlation between the reporting time and the cost of the claim.
The faster a workers’ compensation claim is received by the adjuster, the faster and more controlled the process is. The adjuster is able to conduct a thorough investigation while the facts of the claim are still readily available, before the employee and any witnesses may forget key details that are critical to the claim. Prompt reporting can also help to eliminate any delays in providing appropriate medical care and wage benefits to the injured employee.
Recent data released by Sedgwick Claims Management Services Inc. found:
- Claims that close within 30 days of occurrence cost an average of $287 and about 90% of those claims will remain medical-only cases.
- Claims that remain open 31-90 days jump to an average cost of $722.
- Claims that remain open 181-365 days jump to an average cost of $6,875
A recent study completed by NCCI on lag time also found:
- Week two after the date of the incident cost an average of 18% more than claims reported during the first week.
- Weeks three and four following the date of the incident averaged a 30% increase in claims cost.
- After four weeks the costs increased an average of 45% higher.
Making sure your staff is familiar with the importance of quickly reporting any incidents and injuries is key to controlling your costs. Any injury regardless of it’s initial significance should follow the same reporting process that should be clearly outlined in the employee handbook and regularly posted in break rooms and other common areas.
