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
Further Reading
You’d think a near-400 % pay increase for a group of women in the spotlight would finally ease the tension over pay disparity. But...
Chicago employers with tipped workers can leave the tipped cash wage where it is — a previously scheduled July 1 step-up is off — f...
A Florida restaurant faces nearly $733,000 in back wages after the Department of Labor (DOL) found it failed to properly pay 31 workers. ...
If your employer plans to contribute to Trump Accounts, payroll has until July 4, 2026, to get it right. Coding errors made at setup create...
Finance pros with lingering compliance concerns about employees working remotely will find insight, albeit limited, in new guidance. In...
A proposed change to overtime eligibility by the Department of Labor is causing a fair share of angst for many employers. Companies in the ...
