Something can be done about high WCB rates (letter to the editor)

Alberta’s Workers’ Compensation Board (WCB) recently announced that 2002 premium rates would increase by an average 27.3 per cent for employers (CHRR, Nov. 19). Judging by the minimal reaction by employers, it appears they believe workers’ compensation premiums are just another cost of doing business and nothing can be done to control this cost.

The WCB has, over the past several years, kept premium rates as low as possible by using gains from its investment portfolio to subsidize rates. To the WCB’s credit, they have managed to keep Alberta’s rates among the lowest in Canada. However, due to increases in claims costs that have doubled between 1997 and 2001, a 104 per cent increase in medical costs and a decline in investment revenue, most Alberta employers will experience a 10 to 50 per cent increase in their industry base rate.

Do employers in Alberta feel so financially secure that an average 27.3 per cent increase is okay? Would employers be as apathetic if they experienced a similar increase in their power bill, water bill or telephone bill? Not likely. Successful businesses look for ways to control expenditures, and WCB costs are no different.

Most employers are simply not aware they can control WCB costs.
First and foremost, prevention of workplace accidents is, and always will be, the best method of controlling costs. Fewer claims equals lower claim costs that in turn equal reduced premiums.

When an accident does occur, employers can further control costs through pro-active claims management. They should take a more active role ensuring the WCB is managing workers’ injury claims in the most effective manner possible. If employers do not have the expertise to do this themselves, they should seek the help of experienced third-party claims management professionals.

The workers’ compensation system is complicated and it’s often frustrating, but effectively managing claims, in addition to prevention practices, can help employers save thousands of dollars. Third-party administration costs can be as low as one-third the cost of what employers save as a result of a claims management program.

Key components to a successful program include: timely claim file reporting and review; ongoing contact with the employee, employer, health-care provider(s) and the WCB; return to work/modified work planning; early identification of return-to-work barriers; and appropriate and timely use of health-care and rehabilitation services.

In today’s business climate, companies are constantly looking to improve their bottom line. Workers’ compensation won’t be just another cost of doing business if employers regain control of their WCB premiums through safety initiatives and an effective claims management program.

Tony Fragomeni
Manager, Cost Benefit Services
Matrix Consulting Group Inc
Edmonton

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