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Claim Adjudication

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1. How do employer priorities affect claim adjudication and management in workers’ compensation systems?
The number one priority for all companies is to be successful and that means being profitable. As the global market becomes more competitive, many businesses must cut costs and adopt strategies to ensure that their doors remain open. When an employee injures themselves on the job the potential costs of an injury claim can significantly impact the WCB premiums for a company (Barnetson, 2010). Workers’ Compensation Boards use its experience rating system to adjust an employer’s premiums based on its injury prevention performance compared to the industry average. Performance compared to that average determines if employers are awarded a rebate or presented with a surcharge (Barnetson, 2010). The system is designed to provide an incentive to employers in hopes they will improve safety performance and prevent injuries, but it also can create pressure to minimize claim costs (Barnetson, 2010). Instead of making safety improvements to the operation, employers may attempt to game the system through the adoption of aggressive claim management and adjudication strategies (Barnetson, 2010). These strategies are designed to do three things; get workers back to work as soon as possible; dispute and appeal claims where feasible; and lower premium rates without having to make significant changes to work processes.

More and more employers are recognizing that an early return to work program is an effective tool in claims management. In theory these programs are meant to not only minimize WCB claim costs but also address the potential for moral hazard, keep injured workers engaged in the workplace, and support their rehabilitation while gradually returning to them to full duties (Barnetson, 2010). However, this theory may be an oversimplified logic (MacEachen, Kosney,

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