Top 10 most widely applied workers’ compensation cost-control methods
Respondents were asked to select the most effective methods to control workers’ comp costs from a list of 19 possible methods. To compute the perceived effectiveness of the listed cost-control methods, researchers compiled an index in which selections for "most effective" were weighted twice as heavily as those for "second most effective." Using this method, loss/accident prevention was considered to be most effective overall.
Methods are listed in order from first most effective to tenth most effective:
1. loss/accident prevention programs;
2. light duty programs;
3. medical bill review;
4. preferred provider organizations;
5. telephonic case management;
6. telephonic claim reporting;
7. field case management;
8. utilization review;
9. claim administration audits;
10. cost allocation.
Cost-control methods that did not make the top 10 list include:
• capitated medical costs;
• on-site nurses;
• job requirements analysis;
• industrial hygiene reviews;
• job placement services;
• fax claim reporting;
• safety rewards;
• vocational testing and counseling.
Source: 1999 RIMS Benchmark Survey compiled and published by the Risk and Insurance Management Society and Ernst & Young, both of New York. Cost of the survey is $395 for RIMS members; $445 for RIMS associates, and $495 for nonmembers. To order, contact Insurance Publishing Plus at (317) 843-2523. Organizations that complete the 2000 Bench mark Survey receive a free copy. For details or to complete a survey, visit www.rims.org/general.
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