Why you need to revisit your workers’ comp denial process now
Approving workers’ compensation (WC) claims may put a drain on your company’s resources, but not as much of a drain as denying them.
In many cases, it will cost you more if those claims are denied. A lot more.
That’s the finding of new research by Lockton Companies. Here’s why.67% converted within a year Seems the majority of claims that
get denied don’t stay that way. Two-thirds (67%) of WC claimsthat were originally denied get converted to paid claims within a year.
55% more than the original claim
The real kicker: The money awarded for a converted claim is 55% more than the original claim! So the fact that denial rates for workers’ comp claims are up 20% in the past four years is actuallyprobably costing you more.
This insight is a huge wake-up call for companies in all industries.
Now’s a good time to revisit your claims review process to make sure you’re not denying claims that should be approved … and probably will be anyway as a larger award.
Adapted from “Nearly 70 Percent of Denied Workers’ Comp Claims
Are Converted and Paid, Says Lockton Study,” by Mercedes Ott, at riskandinsurance.com
- Share on
Free Training & Resources
Webinars
Provided by SkyStem
White Papers
Provided by Anaplan
Further Reading
When IRS reduced the electronic filing threshold, the change impacted a long list of information returns. Now, the list of forms to e-file ...
Treasury and the IRS have issued proposed regulations outlining requirements for employer Trump Account contribution programs. Trump Acc...
As employers plan 2027 pay budgets, modest pay increases can mask the tougher challenge ahead: determining where those dollars will have th...
Which Fair Labor Standards Act (FLSA) provision cost employers the most in back wages, according to the latest stats? If you guessed ove...
At what level of authority does a manager become exempt from overtime? A federal judge in Maine approved an $8.875 million settlement invol...
One-week paycheck delays would leave nearly eight in 10 U.S. workers scrambling to cover bills, according to PayrollOrg’s 2025 Getting Pa...
