Workers’ Comp Costs: 3 Ways a Designated Medical Provider Can Help

May 8, 2023 | Iowa’s Construction Industry Sees Opportunities and Challenges Erin Stober, Assistnat VP - Casualty Underwriting, EMC Insurance Companies,

Providing the best possible medical care to your injured employees while keeping a handle on your workers’ compensation claims costs is ideal for any organization, but particularly for those in the construction space. A primary way to succeed in this is by designating a preferred medical provider to provide treatment related to your construction company’s workers’ comp claims. Read on to learn how a preferred medical provider can help. 

1. Receive Expert Care

Having a relationship with providers who have experience treating workplace injuries helps ensure your team members receive effective, quality treatment—and possibly a faster return to work. Providers are often trained in occupational medicine and are familiar with the workers’ comp system. 

2. Streamline Processes 

Establishing a relationship with one provider who understands workers’ comp allows you to set up clear procedures and better communication between your company, the injured employee and the healthcare provider. This makes the entire treatment and claim process more efficient—reducing administrative headaches that take you away from your business and make employees unhappy. 

Some insurance companies also partner with national PPO networks that negotiate medical care rates, which helps control the cost of the claim.

3. Can Improve Your Loss History

Your experience modification rate—a number that reflects your company’s loss history as compared to similar companies in your industry—can affect your bottom line in a variety of ways. If your experience mod is below average, you may not be able to bid on the best jobs and you may also be paying more than you would like in insurance premiums. 

You can improve your experience mod by controlling medical claim costs with the help of a designated provider and by getting injured employees back to work as soon as they are medically able.

If you want to designate a provider for your company, make sure to contact your workers’ comp insurance provider (bonus points if they have expertise in the construction industry, like EMC). They’ll do the heavy lifting—including identifying qualified health care providers in your area and creating communication materials for your team members.