4 Step Process to Successfully Settle More Workers’ Compensation Claims

2. Engage the Team

Once a claim is identified for potential settlement, engaging the settlement team becomes the next priority. This involves a two-fold approach:

1. Addressing the Medicare Component: Collaborate with the MSA vendor and settlement advisor to evaluate future medical costs and determine if an MSA is necessary.
2. Understanding the Injured Worker’s Perspective: Engaging with the worker to assess their comfort level and readiness for settlement. This involves addressing their concerns, clarifying the benefits of settlement, and ensuring they feel supported throughout the process.

Effective team engagement ensures all aspects of the settlement, from legal to financial considerations, are thoroughly addressed. It sets the stage for a well-informed and smooth negotiation process.

3. Roundtable with the Settlement Team and Leverage Best Practices

Roundtable discussions bring together the expertise of the settlement team to brainstorm and strategize on the best approach for each case. This stage is crucial for balancing technical and soft tactics:

• Technical Tactics: Include precise settlement projections, understanding rated ages, and calculating future prescription costs. Accurate data and financial instruments, such as structured settlements, are crucial in formulating offers that align with both the injured worker’s needs and the employer’s budget.
• Soft Tactics: These focus on empathy, personal outreach, and building rapport. Understanding the injured worker’s fears, aspirations, and family dynamics plays a pivotal role in achieving a favorable settlement. For example:
  • Discussing family needs or career aspirations post-settlement.
  • Addressing emotional barriers, such as mistrust of the system or fear of financial instability.

Engaging the right players—including family members, medical providers, and financial experts—ensures all relevant perspectives and needs are considered.

4. 4. Negotiate the Lowest Reasonable Settlement Amount

   Negotiation is the final step, aiming to reach a settlement that satisfies all parties while controlling costs. This involves:

   • Accurate MSA/Settlement Projections: Ensuring all medical and pharmacy costs are accurately projected, providing a clear financial roadmap for the settlement.
   • Structuring the MSA: Using structured settlements to allocate funds over time, protecting both the worker’s future medical needs and the employer’s budget.
   • Rated Ages and Life Expectancy Considerations: Tailoring settlements based on realistic life expectancy, particularly for workers with significant health issues or comorbidities.
   • Future Prescription Cost Management: Leveraging discounts and network savings to reduce projected drug costs, often serving as a powerful negotiation tool.

   By combining empathy with financial acumen, the negotiation process ensures settlements are both fair and financially sustainable.

   Conclusion

   Successfully settling workers’ compensation claims requires a strategic blend of early identification, collaborative team efforts, empathetic engagement, and sharp negotiation. This four-step process not only reduces costs but also fosters better outcomes for injured workers and employers alike. By following this methodical approach, organizations can streamline their settlement process and achieve long-term savings and efficiency.

   Michael Stack, CEO of Amaxx LLC, is an expert in workers’ compensation cost containment systems and provides education, training, and consulting to help employers reduce their workers’ compensation costs by 20% to 50%. He is co-author of the #1 selling comprehensive training guide “Your Ultimate Guide to Mastering Workers’ Comp Costs: Reduce Costs 20% to 50%.” Stack is the creator of Injury Management Results (IMR) software and founder of Amaxx Workers’ Comp Training Center. WC Mastery Training teaching injury management best practices such as return to work, communication, claims best practices, medical management, and working with vendors. IMR software simplifies the implementation of these best practices for employers and ties results to a Critical Metrics Dashboard.

   Contact: [email protected].

   Workers’ Comp Roundup Blog: http://blog.reduceyourworkerscomp.com/

   Injury Management Results (IMR) Software: https://imrsoftware.com/

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