Focus Needed on Comp Claim Severity

Mr. Long noted that there has been a 10-year decline in frequency and asked rhetorically, "What happens when that levels out?" He suggested there could be problems ahead if frequency starts to rise and the industry has done nothing to address the severity issue.

He cited figures from the Florida marketplace that in recent policy years the average medical payment per claim has shown a 16 percent increase. Comparing the average medical payment for claims with seven days lost time, he noted that Florida at $6,755 was among such high states as California, at $6,717, and Texas, at $9,314.

The average number of medical visits for such claims in Florida is 21 visits. In California and Texas the number is 33, he said.

The state of New York, he said, would be included in the ranks of the top states with poor outcomes. However, New York's methods of record keeping make complete comparisons difficult.

If average medical costs continue to surge, he noted, "you're headed for real trouble on an ultimate basis."

Another factor that Mr. Long noted is a lack of investigation. He explained that in doing a file review of high cost cases, he found that one thing they had in common was an investigation was not done.

Mr. Long said the nation's managers are missing the point about the importance of return to work in dealing with worker injury. Almost 100 percent of companies have economic incentives for managers who meet production goals, but incentive "for return to work is a fraction of one percentile," he noted. Supervisors who keep employees at work ought to be rewarded. The answer to the spike in the severity of injuries is better management, he added.