Does Provider Choice Lower Costs?

If you think letting your employees choose their workers’ comp providers versus a system where the employer controls provider choice makes a significant difference in costs, think again. According to research done by the Workers’ Compensation Research Institute, workers’ comp indemnity and medical costs differed very little in states with employee provider choice and employer provider choice.

WCRI notes that the type of injury has an impact. Namely, costs increased when employees had control over provider choice for expensive back injuries. Back injuries tend to be expensive anyway, so this would likely account for the higher indemnity costs.

In conclusion, this suggests that staffing firms are not likely to experience any workers’ comp savings if they restrict worker provider choice.

It makes more sense for employers to lower costs by finding ways to improve safety and prevent these expensive injuries occurring. In the event of an injury, employers should carefully monitor claims and medical treatment. LeastStaff has many workers’ comp and general insurance solutions to keep your insurance rates as low as possible.

Visit our web site at www.leaststaff.com, call us at 202-302-1212, or email us at david@leaststaff.com for more information about all our staffing and workers’ comp offerings.

Sincerely
David Schek
President
Leaststaff.com