Workers Compensation Fund Management of Utah

Worker’s Compensation is one of the most difficult benefit programs that a Human Resources professional must administer.  There are countless regulations at the state and federal level and these often change without any warning or notice.  In addition, there are often strong financial penalties for failure to complete necessary paperwork and reporting on time.

There are many aspects of a Worker’s Compensation program that have to be handled, including

• preparation and filing of injury reporting forms
• management of claims
• implementing light-duty and return-to-work programs
• certificate issuance
• general plan administration

Each of these areas can be time consuming and can take the focus of the HR professional away from other tasks.  Because of the time consuming and legal compliance issues inherent in the Worker’s Compensation program, many companies have begun to look at outsourcing their program or parts of the program to an outside Fund Provider.  This vendor typically has a larger staff that can be devoted to all of the tasks involved and does not have their energy also pulled to other HR work.  The Fund Provider also has the ability to have staff that are in charge of knowing about all the changes to the regulations and can make sure that a company is staying compliant with requirements.

One of the first areas that many employers consider outsourcing is the preparation and filing of the First Report of Injury form.  This form generally must be completed and submitted to the applicable state agency within 24 hours of the time the injury or illness first occurred.  Often employers do not have the staff or staff time available to complete this process in a timely manner.  Many are turning to fund providers to handle this process for them by offering employees an 800-number to call whenever they have an issue arise.  In addition to the time consuming aspects of the First Report form, there are also often employee who feel fear about having to report an injury to their supervisor or another manager.  They worry about what the person will say, so instead they say nothing, which can lead to the company suffering penalties for not submitting the form in time.  By having an outside place to call, this fear can often be alleviated and employees may be more willing to call and share the information in a timely manner.

Another area that companies are often looking to outsource is the return to work program and larger issue of management of claims.  The goal of the Worker’s Compensation program from the employer’s and insurance company’s perspective is to get employee back to his/her job as soon as possible in order to reduce the amount of money paid in medical and lost time wages.  However, there are many cases where the employee may have restrictions, such as carrying amounts or time on their feet that can prevent the employee from immediately returning to their job.  In these cases, a light-duty program is often given to the employee so the employer is able to get some work done by the employee, but still stay within the medical restrictions.  There are also times when employees are able to return to their original position, but at reduced hours.  All of these types of situations take a lot of time and follow through on the HR staff’s end to make sure that the company (and the employee himself/herself) is not violating any restrictions. 

Employees can also be unsure about sharing their medical condition and current symptoms with their employer and may try to ignore or “shrug off” restrictions from their doctor, so as to not cause programs for the employer.  The employer may also feel reluctant to fully monitor the employee’s work and make sure he/she is not violating restrictions.  However, the employer has a responsibility to make sure that both sides are remaining fully compliant and honest during this period.  This leads many employers to choose a Fund Provider who has experience in the creation and administration of light-duty and return-to-work programs.

Because of the time consuming, costly and regulation-laden aspects of Worker’s Compensation many companies are choosing to outsource some or all of the following: preparation and filing of injury reporting forms, management of claims, implementing light-duty and return-to-work programs, certificate issuance and general plan administration.  However, an employer must remember that, while they may outsource all or part of their program to a Fund Provider, this does not take all responsibility away from the company.  There are still many aspects that the company and provider will need to work closely together on in order to have a successful program for the employees and a legally compliant one for the employer.  Communication and the choice of a strong fund provider will be key in the success of an outsourcing program.

Need someone to manage your workers compensation fund in Utah? We can administer the program, handle payments, and process claims. We will help file the first report of injury and implement a back to work program for your employees. We carry prompt certificate insurance as well. If you are in Utah and need someone to administer your workers compensation fund please give us a call at 1.866.637.3900 and speak with a representative to tailor a program specifically for your business needs. Or you can look at our other workers compensation information page.