Knowing how the machine is working from every perspective in workers comp policy means that you can better make a budget and plans for the future. Workers comp has only existed since 1901, and you should be aware of the major reforms that have come since then. It’s clear around the country that we still have a long way to go before providing workers with the care they need in the most efficient manner.
The numbers rolling in from 2015 come with good news and bad news. One recent study in California showed that while workers comp claims were down, suggesting that both employers and employees were practicing smarter habits, the severity of the claims seems to be headed up. We’ll look at some of the numbers in context.
This report analyzed about 3,500 claims and found that costs for workers comp have declined slightly due to the number of people filing has declined. However, due to the serious nature of the injuries, it has not declined nearly as much as you might suspect. Between 2005 and 2014, paid claims increased by just under 5.5% due to the sever nature of the injuries. One theory of why this is happening could be because the work force in California is aging, with more people at risk for bodily harm in all types of working scenarios. The survey also shows that claims that go to court which are only about 20%, account for more than half of the total amount paid out for every claim. The whole point of workers comp is to eliminate lengthy lawsuits for the benefit of both the employer and employee.
Meanwhile in places like Florida, Michigan, and Illinois, there is a lot of attention being paid to how claims are processed and what’s contributing to the problems in the system. Flint’s water crisis has sparked debate, and talk of reform is up. Some see this as a political matter while others see it as a case of simple greed. This may or may not cause country-wide changes during this election year, but it suggests that there will be efforts to fix the holes in the future. Workers comp only gets so much attention, but that doesn’t mean that elected policy makers aren’t against reintroducing the topic when it seems fit to garner public attention.
Regardless of the trends, safety does need to be at the forefront of your mind for the upcoming years. If you do have an aging workforce, then you may want to invest in more gear and training to promote safety. Keep your communication level up with employees about major stories, and always be aware of new measures you can take to care for your employees.
