Workers’ comp rates could continue to rise
Occupational insurance rates will continue to rise, but the number of on-the-job injuries will level off. Those are two year 2000 predictions for the health care industry made by Jeffrey Berkman, MD, president and CEO of Industrial Health Care (IHC), Connecticut’s largest provider for the prevention, treatment, and rehabilitation of work-related injuries and illnesses.
"I think in 2001, we’ll see the rates for workers’ compensation insurance increase anywhere from 10% to 50%," he says.
"Over the past five years, we saw insurance rates fall to the lowest levels possible, but last year the rates started to creep back up. Insurance companies invested the premiums in the stock market and were able to reap great returns," Berkman points out. "But the market has been down all year in 2000, and the only way to avoid going into the red is by raising rates. In Connecticut, we’re seeing insurers losing $1.20 for every dollar they charge in premium. Their only recourse is to raise rates."
Berkman says he sees some good things in the future for occupational health professionals, as well. "One of the more optimistic predictions I have for 2001 is that the number of on-the-job injuries will level off or decrease. Most employers have gotten the message that safe workplace practices save them money in the long run.
"We’re also seeing them implementing more safety programs and drug-testing programs. With this much focus on work safety, I can’t see the numbers changing too much. The rate of injury has gone from 11 injuries per hundred to seven per hundred in the past 10 years in the private sector. A similar change was reported in the public work force."
Berkman also predicts that employers will have to take a hard look at their aging work forces to see what they can do to ensure their continued health.
"Americans are working longer and harder than ever before. This is translating into more injuries for the over-50 employee pool," he says.
"Older workers have always been more old school,’ meaning when they got injured, they rarely complain or miss work. Instead, they suck it in and tough it out. But now, I’ve witnessed a definite increase in the number of patients over 50 in our clinics," Berkman explains. "Employers will have to take action in the form of modified duties or other accommodations to ensure the health of their long-term employees. It’s getting so they can’t just replace them with younger workers because there aren’t any to take their place."
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