Developing a risk management plan and finding effective methods to reduce workers compensation insurance costs are two goals that every employer should have. A quality strategy can keep workers safe and prevent higher incident rates at the workplace.
This is especially important for employers in high-risk industries, such as construction, manufacturing and health care. A lack of focus can end up leading to a number of injuries and illnesses related to the job. Therefore, it should be a priority to establish a risk management plan and find other ways to keep every worker happy and healthy on the job.
Costs on the rise in Indiana
One state that has seen medical costs related to workplace injuries tick up has been Indiana. According to a recent report from the Workers Compensation Research Institute, these expenses are higher than in many other states, and are even growing at a faster rate.
Based on the study, which included 16 other states, hospital payments were some of the highest, clocking in near $12,000 per claim in 2010. In order to address some of these issues, state legislators have enacted a bill to lower hospital costs by creating a fee schedule. These changes are set to take hold this year.
"Future studies will help policymakers measure the effectiveness of the reforms on the costs and growth of medical care for injured workers in Indiana," said Ramona Tanabe, WCRI's deputy director and counsel.
Overall, medical payments in Indiana increased 8 percent per claim per year between 2006 and 2011, the WCRI reported. That is faster than in the other states analyzed in the study.
Early action can lower costs
Due to rising costs associated with workers compensation insurance, it is wise for all employers to find ways to keep these expenses down while still protecting employee safety. One of the best ways to do that is through early action, and proactive measures have shown positive results for many industries.
According to BUILDINGS.com, spotting hazards as soon as possible is a great way to implement effective risk management. This could even take place during the contract bidding phase, for example. In the construction industry, finding these dangers before the work begins is often the best way to ensure safety and security. Take a look at the current project plan, as well as older ones, and online resources. Then, consult with experts to determine the best course of action. Doing so will ensure a comprehensive list of risks – and a clear direction for how to proceed.
