https://www.americancityandcounty.com/wp-content/themes/acc_child/assets/images/logo/footer-logo.png
  • Home
  • Co-op Solutions
  • Hybrid Work
  • Commentaries
  • News
  • In-Depth
  • Multimedia
    • Back
    • Podcast
  • Resources & Events
    • Back
    • Resources
    • Webinars
    • White Papers
    • IWCE 2022
    • How to Contribute
    • Municipal Cost Index – Archive
    • Equipment Watch Page
    • American City & County Awards
  • About Us
    • Back
    • About Us
    • Contact Us
    • Advertise
    • Privacy Statement
    • Terms of Service
American City and County
  • NEWSLETTER
  • Home
  • Co-op Solutions
  • Hybrid Work
  • Commentaries
  • News
  • In-Depth
  • Multimedia
    • Back
    • Podcasts
    • Latest videos
  • Resources/Events
    • Back
    • Webinars
    • White Papers/eBooks
    • IWCE 2022
    • How to Contribute
    • American City & County Awards
    • Municipal Cost Index
    • Equipment Watch Page
  • About Us
    • Back
    • About Us
    • Contact Us
    • Advertise
    • Cookie Policy
    • Privacy Stament
    • Terms of Service
  • newsletter
  • Administration
  • Economy & Finance
  • Procurement
  • Public Safety
  • Public Works & Utilities
  • Smart Cities & Technology
  • Magazine
acc.com


FINANCIAL MANAGEMENT/Cutting workers’ comp costs

FINANCIAL MANAGEMENT/Cutting workers’ comp costs

City and county governments are particularly challenged when attempting to reduce workers' compensation costs. Special problems are presented in local
  • Written by Melody Gill
  • 1st October 1999

City and county governments are particularly challenged when attempting to reduce workers’ compensation costs. Special problems are presented in local governments because of the inherent diversity of their employee bases. The difficulties associated with formulating modified-duty programs for the vast number of governmental positions (and the high level of labor-intensive positions such as highway workers) also create problems.

In fact, industry experts predict a rise in workers’ compensation costs, resulting in higher insurance rates. That rise is reversing the gradual decline in workers’ comp costs that employers have enjoyed during the past few years.

To make matters worse, the costs associated with wages and benefits paid to off-the-job workers – and related productivity losses – also are rising. In 1997, businesses paid $127 billion in total workers’ comp costs, $63 billion of it representing the direct and indirect costs associated with lost work days.

As with all employers, investing in the best loss control/injury prevention program possible is local governments’ first line of defense against high workers’ comp costs. In Atlanta, that involves “smart management” strategies. “We’ve found treating each department like a separate employer to be an effective cost-reducing measure,” says the city’s workers’ comp manager, Linton Harris. “That allows us to concentrate on the individual needs of each employee base.” (Atlanta is self-insured, and its workers’ comp program is self-administered.)

Additionally, to properly manage those on-the-job injuries that inevitably occur, governments can form partnerships with specialized workers’ comp vendors – third party administrators, insurers and managed care organizations – that are adept at dealing with the complexities of governmental employee bases.

The majority of vendors remain somewhat traditional in their approach to workers’ comp, plugging the employer into an existing provider network, using non-medical adjusters as front-line managers and involving medical personnel late in the claim when certain cost levels are reached or when problems arise. In recent years, however, workers’ comp vendors have begun using non-traditional, smart management approaches to bring costs under control.

Specialized third-party administrators, insurers and managed care organizations can help local governments reduce their workers’ comp costs in a number of ways, including: * assisting in the development of sophisticated modified-duty programs for all departments; * customizing a provider network that addresses the particular needs and culture of each facility or department, then carefully training each physician and ancillary facility to operate within tightly controlled systems of managed care; * placing highly credentialed medical personnel on the front lines. Nurses and physicians act as the first point of contact after every injury and begin immediate patient tracking and medical management on every claim. Medical personnel remain the primary managers of the claim, working closely with adjusters; * requiring providers to pre-certify or receive authorization for treatment choices and care plans while the injured worker is still at the medical facility. That allows front line medical managers to control each medical event and each stage of medical progression; and * conveying treatment or medical event information via phone and fax (or online) to the employer immediately following the real-time interaction with providers, keeping the employer constantly abreast of progress in each claim.

Tags:

Most Recent


  • Reno, NV
    In Nevada county, data underpins efforts to address climate change
    Across the United States, cities and counties are doing their best to confront climate change in myriad ways—from bolstering seawalls to updating electrical grids and everything in between. But in order for communities to best direct their efforts and responsibly spend hard-earned taxpayer dollars, administrators need data. In Washoe County and Reno, Nev., for example, […]
  • $52B semiconductor investment intended to rejuvenate American manufacturing
    Three decades ago, American manufacturing dominated the semiconductor industry, producing about 40 percent of the global supply annually. But over time, companies shipped business overseas looking to cut costs, and today, the nation produces only 10 percent of all semiconductors. It’s something the Biden Administration is trying to change through CHIPS and Science Act. “There […]
  • How capital improvement project prioritization helps secure infrastructure funding
    Trillions of dollars in federal infrastructure funding have been made available to state and local governments across the U.S. since early 2020. This money has been allocated to address the nation’s aging infrastructure, much of which is at or near the end of its useful life, and to bolster the U.S. economy in the wake […]
  • Climate bill lauded; predicted to reduce nation's carbon footprint by 40% within decade
    Amid yet another punishing heat wave, the sweeping Inflation Reduction Act, which was approved along party lines Sunday by the Senate, represents a historic step in the nation’s fight against climate change by drastically reducing its climate footprint—while injecting billions of dollars into cities and counties. Along with provisions that cap prescription drug costs for […]

Leave a comment Cancel reply

-or-

Log in with your American City and County account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • 10 reasons why local governments should outsource all IT: Post pandemic view
  • A call to action: Moving procurement past its pre-pandemic mindset
  • Making deals: Cooperative agreements can help governments achieve supplier diversity goals
  • Procurement methods go to the head of the class in the Pennsylvania State System of Higher Education

White papers


Modern American Perspectives on Law Enforcement

14th July 2022

Reimagine the Employee Experience

12th July 2022

How to Assemble a Rockstar Website Redesign Steering Committee

7th June 2022
view all

Events


PODCAST


Young Leaders Episode 4 – Cyril Jefferson – City Councilman, High Point, North Carolina

13th October 2020

Young Leaders Episode 3 – Shannon Hardin – City Council President, Columbus, Ohio

27th July 2020

Young Leaders Episode 2 – Christian Williams – Development Services Planner, Goodyear, Ariz.

1st July 2020
view all

Twitter


AmerCityCounty

In Nevada county, data underpins efforts to address climate change dlvr.it/SWTGHy

11th August 2022
AmerCityCounty

$52B semiconductor investment intended to rejuvenate American manufacturing dlvr.it/SWPqHQ

10th August 2022
AmerCityCounty

How capital improvement project prioritization helps secure infrastructure funding dlvr.it/SWLQB7

9th August 2022
AmerCityCounty

Climate bill lauded; predicted to reduce nation’s carbon foot print by 40% within decade dlvr.it/SWHGQL

8th August 2022
AmerCityCounty

Partnership launches no-cost wastewater monitoring service for local governments dlvr.it/SW7N74

5th August 2022
AmerCityCounty

Investing in America’s onsite wastewater treatment systems for equity and sustainability dlvr.it/SW4Mb9

4th August 2022
AmerCityCounty

With passage of PACT Act, veterans service officers are preparing for an influx in applicants dlvr.it/SW4KTg

4th August 2022
AmerCityCounty

The 5 Procurement Superpowers Shaping the Future of Public Procurement dlvr.it/SW4DqT

4th August 2022

Newsletters

Sign up for American City & County’s newsletters to receive regular news and information updates about local governments.

Resale Insights Dashboard

The Resale Insights Dashboard provides model-level data for the entire used equipment market to help you save time and money.

Municipal Cost Index

Updated monthly since 1978, our exclusive Municipal Cost Index shows the effects of inflation on the cost of providing municipal services

Media Kit and Advertising

Want to reach our digital audience? Learn more here.

DISCOVER MORE FROM INFORMA TECH

  • IWCE’s Urgent Communications
  • IWCE Expo

WORKING WITH US

  • About Us
  • Contact Us

FOLLOW American City and County ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookies Policy
  • Terms
Copyright © 2022 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X