Of 733 companies polled by insurance broker Johnson & Higgins, almost two-thirds viewed workers' compensation costs as a serious problem. No wonder. Although the average number of claims per 100 employees fell from 10.9 to 10.1 from 1989 to 1991 (the most recent figures available), average costs per claim rose by 35%, from $3,842 in 1989 to almost $5,200 two years later.
How is your company trying to control costs? % of respondents
Has formal written safety program 76%
Reviews all medical bills for allowable charges 51
Reviews all medical bills for medical necessity 45
Reviews selected medical bills for medical necessity 33
Has contract with preferred-provider organization 30
Reviews selected medical bills for allowable charges 29
Source: "Survey on Workers' Compensation," Johnson & Higgins, New York City, April 1993.