Having the right type of workers comp claims management software can save organizations tens of thousands of dollars each year. It is important to understand the different types of workers comp software as they vary considerably based on price, features, infrastructure, and years in business.
Workers compensation claims are expensive for employers. The total cost of work injuries as reported by the National Safety Council in 2020 was $163.9 billion. This figure includes wage and productivity losses of $44.8 billion, medical expenses of $34.9 billion, and administrative expenses of $61.0 billion. Moreover, the National Safety Council for the same time-period states the average cost per worker was $1,100 and $44,000 per worker when a medical professional was consulted.
There are several factors that drive the total workers compensation costs. These include severity of injuries, frequency of injuries, amount of claims, geographical location, and classification of employees from the National Council on Compensation Insurance (NCCI). Each organization can save money on their workers compensation insurance costs, improving their profitability by better tracking claims through workers comp tracking software.
When choosing workers comp tracking software the following capabilities should be considered:
- An Employee intake portal, to report incidents from accident sites with a mobile phone, iPad or notebook computer.
- The ability to upload photos and videos with a claim, routing them to stakeholders involved in the incident or claim.
- Case Management screens to record Lost Time Days and Work Restricted Days (light duty) detailing the exact restrictions.
- Drill down dashboards for viewing multiple levels of detail.
- Robust, easy-to-use reports that can be exported, e-mailed, or scheduled.
- Strong security including third-party audits for standards, such as HIPPA.
- Role-based security, allowing different level of access for those involved in the claims process.
- Ability to address needs for workers’ comp, safety, case management, risk management case management and various compliance requirements based on an organization’s needs.
Additionally, when evaluating workers comp tracking software, the total cost of ownership over multiple years is an important factor, as pricing can change annually, causing an unexpected price increase if a multi-year license has not been included.
The best workers comp tracking software solutions are versatile, letting an organization select capabilities that are important without spending money on unnecessary features.
Organizations that have a third-party claims management firm should consider using an independent claims management system or workers comp tracking program as a back-up, providing data redundancy, security, and additional reporting capabilities. Simply exporting data to a CSV or Excel file is not sufficient, as the raw data without a software solution to validate and interpret the data is of little value. This can validate data integrity of the backup data, and allows immediate access to data with no wasted time if it is ever needed.
