Report workers’ compensation claims sooner, save money. Sounds simple, right? Although intuitively this reasoning makes perfect sense, it has often been difficult to quantify the relationship between report lag time and cost per claim.

This study is an update to an earlier study compiled by Liberty Mutual Risk Management Solutions that continues to demonstrates that, on average, the sooner the claim is reported, the lower its ultimate cost.

Methodology
Data for this study was compiled from Liberty Mutual’s large database of National Market customers using a 3 year period from 2003 through 2005. The study was limited to a 3-year period to avoid any impact of workers’ compensation reforms that occurred earlier in the decade.

This study focuses on the workers’ compensation line of business and includes only indemnity claims (claims with greater than $0 of indemnity payments). Allocated loss adjustment expense (ALAE) was included in the total cost of claims.

Claims that resulted in fatalities are excluded from this study, partly because they are likely to be reported immediately (their severity necessitates prompt reporting).

Losses and claim counts were developed to their estimated ultimate values using standard actuarial methods and adjusted for inflation and benefit level changes. Additionally, each claim was capped at $250,000 to minimize the impact of outliers on the dataset.

Conclusions
The results of this study once again emphasized the need to report claims as early as possible. Using the 0-3 day report lag group as the basis to measure the impact, the study shows that claims that were reported between 1-2 weeks cost 6% more while claims reported between 2-3 weeks cost 15% more. But that was just the tip of the iceberg. Claims that were reported between 3-4 weeks cost 26% more while claims that are reported at 1 month or later cost a whopping 40% more.

In order to understand the results of the study, it is important to look at some of the factors attributed to the increased cost of late reporting.

• Delayed access to medical attention, therefore, deterioration of the medical condition and increase in treatment needs and related costs
• Delayed access to our Preferred Provider Organization and potential savings that can otherwise be gained
• Potentially higher rate of litigation and resulting cost
• Inability to maximize on claimant’s inclusion in light duty tasks as part of Return To Work programs.

Best Practices
Reporting claims sooner can represent significant savings to your organization. Below are some best practices to follow when it comes to reporting claims:

• Designate an individual to be responsible for reporting claims
• Educate employees about their responsibility to report injuries
• Measure and monitor report timeliness
• Report claims as they occur, 24 hours a day, 7 days a week
• Target reporting 80% of claims within 3 days

For more information, please contact your RMI HR Representative.

A Form W-4 claiming exemption from withholding is valid for only one calendar year. To continue to be exempt from withholding in the next year, an employee must give RMI a new Form W-4 claiming exempt status by February 15 of that year. If the employee does not give RMI a new Form W-4, RMI will withhold tax as if he or she is single, with no withholding allowances.

If any of your employees were exempt from federal withholding in 2009, a 2010 W-4 was mailed to their home along with a letter explaining why a new Form W-4 is needed. If any of your employees have questions regarding this letter, please refer them to the RMI Payroll Department.

Resource Management has been working with our insurance partners to bring you the latest in technology when it comes to your benefits. Read below for some of the ways our partners are now working to bring you your benefits information on-line.

On January 4th, EBMS (RMI’s claims processor for employees using our self-funded health plan) went live with their Online Chat. The EBMS Online Chat provides instant, online access to the EBMS Client Service Center for answers to any questions that are normally handled in the call center. The Online Chat can be accessed through your personal miBenefits homepage by clicking on the flashing Online Chat icon. You will then be put into a queue and the next available Client Service Representative will assist you as quickly as possible. The Online Chat will be staffed during normal EBMS Client Service hours, which are:

Monday – Thursday 7 AM – 9 PM (MST)
Friday 7 AM – 6 PM (MST)

If your communication is initiated outside of these hours, participants have the option of sending an email through the chat icon that will be answered within 24 business hours.

If you have not yet set up your personal account through miBenefits, we encourage you to do so today. miBenefits will allow you to access your claims information on-line, review recent explanation of benefit statements (EOBs), provides a copy of your plan document for review and also gives you access to WorldDoc 24/7, an on-line medical library. All you need to do to register is click on the miBenefits link (www.ebmstpa.com) from RMI’s website and have your member identification number in hand.

Dental Select is working to bring RMI’s employees “paperless benefits.” As of October 1st 2009, all explanation of benefits statements, as well as plan summaries, are now available for view on Dental Select’s website. After a claim is processed by Dental Select, you will receive a postcard in the mail informing you that a document is available for you to view (employees can opt out of the paperless system by completing a short form on Dental Select’s website). You will then be able to log on and review the information about your dental claim.

If you have not yet set up your personal account through Dental Select, we encourage you to do so today. All you need to do to register is link to Dental Select’s website (www.dentalselect.com) from RMI’s website and click on the purple “Members” page to sign up. Be sure to have your member identification number on hand. Once you have signed up, you’ll be able to request new identification cards, view your plan’s maximum balance and, as mentioned above, view your explanation of benefits statements for each dental service.

RMI has just made it easier for employees to locate urgent-care providers any time of the day or night. On the home page of RMI’s website, you will see a button titled “Quick Benefits References.” This new button will give you immediate access to an urgent care provider in your area, the number to the EBMS 24-hour Nurse Care Line as well, as the number for Poison Control.

This button is currently for Utah employees utilizing RMI’s self-funded health plan but a button for those enrolled with GroupHealth Options will be created soon.

For those employees participating in the Flexible Spending Account Plan, filing for reimbursement has never been easier. All employees who are participating in 2010 have an on-line account set-up with National Benefits (NBS). Employees who re-enrolled for 2010 should have their account set up with their customized user name and password. Those who are new to the plan for 2010 will need to set up their account. From RMI’s website, you can link to the NBS website (www.nationalbenefitservices.com) and once you are logged into your account, you can click on Claims, and then Claim Entry, to enter data regarding your claim. You will need to attach a PDF copy of your IRS–approved receipt. There is no need to submit any paper copies to NBS, as everything can be done on-line.

RMI will also be posting a calendar on our website so that employers and employees will be able to see important upcoming dates. Items such as RMI holidays, open enrollment periods, etc. will be shown on this calendar. Please watch for this and remind your employees to check it often so that they are aware of important dates.

RMI is excited to be able to provide our employees many “hi-tech” options for managing their benefits. We hope that you will take advantage of the items mentioned above. If you need assistance in using any of the new benefit tools, please contact the Benefits Department at (888) 764-0200 or (801) 355-0200.

At quitting time, the company parking lot can resemble a demolition derby at the race track. It sometimes seems that the first driver through the exit will win a trophy.

To lessen your chances of being involved in a parking lot collision, think about these safety ideas:

• Do a circle check of your vehicle before you get into it. Look for any obstacles which you might strike as you start to move such as another vehicle, a pedestrian, or something on the ground. Even a lunch bag with a glass container might be enough to puncture your tire. Also check to make sure your vehicle is fit to drive with properly inflated tires and unobstructed windows and lights.
  
  
• Take your time backing out of your parking spot. Check the rear view and side mirrors, and look over both shoulders. Better yet, park where you don't have to back out. In some instances, it may be safer to back into a parking spot so that you can drive forward when you depart.
  
  
• Always practice defensive driving techniques, especially in a parking lot. Look out for the other person because he or she may not be looking out for you. Stay alert to changing conditions around you. Take your time and give yourself lots of room to maneuver around the other cars.
  
  
• Observe all traffic signs in the parking lot such as "Yield," "Stop" or "Slow." These signs are posted for your safety.
  
  
• Use your turn signals to communicate your intentions to the other drivers. Courtesy and good driving habits are just as important in the parking lot as they are on the expressway.
  
  
• Buckle up! Never move your car even a few feet without fastening your safety belt and harness. Make it a habit to fasten the safety belt before you put the car in gear.
  
  
• When conditions such as rain, snow storms or darkness make it difficult to see, use extra caution as you walk to your vehicle and as you drive out of the parking area.
  
  
• If you park in an unsecured parking structure or underground parking area, have your car keys ready in your hands as you approach the vehicle. Arrange to walk with a co-worker to your cars for better personal security. Remember to check the back seat of your car for intruders before you open the car door.
  
  
• Falls are a common injury in parking areas. Wear non-slip footwear when conditions are wet or icy. Watch where you are going and be alert for obstacles such as curbs and broken pavement. If you are carrying items, make sure you can see over the load. Check the footing before you step out of your vehicle because it could be icy.
  
  
• Wear light-colored or reflective outer wear if you're walking after dark so that you will be seen by drivers.

For additional safety information for parking areas, please contact your RMI HR Representative.

Any machine part, function, or process that may cause injury must be safeguarded. When accidental contact with a machine or its operation can injure the operator or others, the hazards must be either eliminated or controlled. Crushed hands and arms, amputations, and eye injuries are just some of the possible machinery-related injuries. Improper safeguarding may even lead to death. Safeguards are essential for helping workers avoid needless and preventable injuries.

Identifying the problem points and selecting the key safeguards are essential. This should take into account the frequency of exposure, likelihood of injury, and severity of an injury.

Basic Areas Requiring Safeguarding
Point of Operation: Point where work is performed on the material – includes cutting, punching, boring, bending, shearing

Power Transmission Apparatus: Components that transmit energy to part of the machine performing work – includes flywheels, pulleys, belts, gears, cranks, chains

Other Moving Parts: All parts of the machine that move while working – includes reciprocating, rotating, transverse, moving parts and feed mechanisms

Basic Requirements

• Prevent hands, arms and other parts of a worker’s body from making contact with dangerous moving parts.
• Choose durable material that will withstand conditions of normal use.
• Secure the guard to the machine so that it cannot be easily removed.
• Protect from falling objects that could fall into moving parts and create projectiles.
• Create no new hazards – sharp edges or shear points – when making the guard.
• Create no interference that would prevent the worker from performing the job quickly and comfortably.
• Allow safe lubrication of the machine without having to remove the guard.

Even the most elaborate safeguarding system cannot offer effective protection unless the worker knows how to use it and why. Therefore, training is a crucial part of any effort to provide safeguarding against machine-related hazards. Employees need to be trained on how to use the safeguards, why they are important, under what circumstances they can be removed and what to do when a safeguard becomes damaged. For more information or safety training, please contact RMI’s Human Resources Department.