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 Yooz
White Papers
Provided by Anaplan
Further Reading
Year-end may seem a long way off, but some changes related to Form W-2 may require your attention now. For example, the Social Security...
The U.S. Supreme Court has reached a decision in the case of a highly compensated employee who sued his employer for unpaid overtime. I...
Most state withholding tables coincide with the start of the calendar year. But mid-year adjustments happen too, and they can catch payroll...
Maryland employers must register for the state’s Family and Medical Leave Insurance (FAMLI) program. Registration opened Sept. 1 and ...
When employers fail to honor wage and hour settlement agreements, the Department of Labor’s next step is to seek a court order. In th...
IRS told one employer that payments made to employees under its fixed-indemnity health insurance policy were subject to federal income, FIC...
