In our last blog, we discussed the impact unemployment claims have on insurance rates for State Unemployment. Another major area of concern for healthcare staffing agencies is the worker’s compensation premium that is experience rated as well.
What is Worker's Comp?
Worker’s compensation is insurance carried by the employer to reimburse employees for accidents or injuries suffered on the job. For new employers, a flat percentage of the employer’s payroll is used for first year premium.
Successive years are based on the following information:
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Claims paid
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Classifications of workers (assessment of job risk)
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Amount of payroll and number of employees
The percentage of payroll charged will directly impact the gross margin and should be monitored carefully to eliminate unnecessary rate increases. Although an accidental injury, by its very nature is not a pre-planned event, it is in the best interest of the employees and employer to deploy training procedures for some of the most frequent injuries. Needle sticks for healthcare workers is one of the most prevalent claims by number of incidents. Minimizing these claims through various training programs can dramatically impact the insurance premiums.
A study by Broward Health (www.isixsigma.com/industries/healthcare/reducing-contaminated-needle-sticks-healthcare-system-using-six-sigma/) found that most sticks were due to unsafe passing of sutures or instruments during surgery and the use of non-safety intramuscular (IM) needles. The next most frequent cause was disposal related, including sticks from needles being placed in trash.
The Center for Disease Control CDC has valuable information for the prevention of needle sticks: www.cdc.gov/niosh/docs/2000-108
Remember the more proactive you can be with the prevention of injuries, the safer your employees will be and the better your margin will be!
