Workers Compensation/Major Medical Cost Containment

The Managed Health Plan can also help with Workers Compensation and Major Medical cost containment. Workers Compensation and Major Medical Insurance premiums are based on loss ratios. The greater the utilization of Workers Compensation and/or Major Medical Insurance, the higher the premium will be. 

Seventy percent of Workers Compensation claims are handled with a doctor visit and a prescription issued. Most employees will utilize workers compensation opposed to their own doctor because of out-of-pocket costs (deductibles, co-pays, etc.). If an employee utilizes the Managed Health Plan benefits first, Workers Compensation Insurance doesn’t pay out. This can result in a reduction in loss ratio. However, it does not absolve the employer from filing the appropriate paperwork associated with a work-related injury/illness.

The same thing occurs when the Managed Health Plan benefits are utilized before an employee's Major Medical Plan. Costs diverted off of a Major Medical Plan can result in reduced premiums come renewal.