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
