“Life moves pretty fast. If you don’t stop and look around once in a while, you could miss it.” --Ferris Bueller
Much like life, the world of workers’ compensation moves fast. Once in a while, we need to stop, look around, and take stock of the latest trends impacting the workers’ comp system. With that in mind, let’s examine the top trending issues in the world of worker’s compensation.
AI and Wearables
The worker’s comp insurance industry, as well as the workplace, will be faced with the continued introduction and implementation of artificial intelligence. Let’s not be afraid of it as thoughts of “Terminator” or “I, Robot” pop into mind. Push the fears aside. On the claim integration side, programs will assist the mundane, regular data entry tasks and detect the atypical identifying potential fraud. The claims professional can focus on the complex aspects of the claims rather than the busy work. Integration will have its hiccups with existing platforms, but the IT experts can work out the kinks. The key takeaway is to view AI as a tool not to replace the worker, but to assist the worker. Human deduction, reason, and gut instincts are necessary for decision-making. Not even ChatGPT can replace the astute mind of worker’s compensation professional.
Often grouped under the AI umbrella is wearable technology for the worker. As the importance of ergonomics become a hot topic again, these devices can reduce injury, especially with respect to repetitive motion tasks. They can also assist with injury recovery. Of course, implementing these advancements must be balanced with personal privacy issues and ethics.
Return-to-Work Programs 2.0
Always an important topic in worker’s compensation: the use of return-to-work programs. The workers’ comp community knows the many documented benefits of such programs. Experts recommend programs that are mutually beneficial for the employee and the employer. Buy-in from the employee is key for a successful program. Consideration of programs that are off-site that support the community, such as light duty work at a charitable organization, may provide the employee a sense of greater purpose. On site, spending on in-house return to work programs can be a wise investment, especially if created through collaboration between the employer, insurance professionals, and the employee.
Medical Costs, Drugs, and Advancements
Medical and drug costs are traditionally the largest chunk of worker’s compensation spend. New drugs and devices are developed daily, and the overkill of marketing these drugs directly to the individual continues. In addition, significant change is afoot when considering legislation and the attitude toward recreational/medical marijuana use.
Another issue to watch: treatments for co-morbidities such as obesity. Some states have standing legal authority for weight loss programs and procedures for compensable injuries. When and if weight loss drugs should be used will be a key question in workers’ comp.
Mind the “Talent Gap”
An interesting dynamic is occurring within the modern workforce. Boomers and Gen-Xers are firmly entrenched and invaluable members of the workforce. Now, add in the millennials and Gen-Zers. The age range of workers is larger than ever. Mentorship, training, and recruitment is paramount for many industries. Also, modern day priorities and performance must be balanced to maintain a robust workforce. Finding ways to successfully join the different age groups not only provides for a smarter workforce, but also a supportive, healthier one.
An Ounce of Prevention
Employment pre-screening programs and policies will be re-visited and revamped, merging traditional methods with trending total worker wellness initiatives, while keeping substantive safety training and transparency in mind. Smarter hiring and placement with a holistic approach can help control claim costs and decrease incidence of work place injuries.
Innovative Resolution
Various factors—including but not limited to geopolitical concerns, economic trends, increased expenditures—impact employers and employees. In addition, hybrid/remote working is now common.
Innovative claims handling and resolution are needed now to keep costs down. Some ideas include incentive for early resolution, proactive injury management, and early identification of certain types of injuries for ergonomic improvements.
Increased Inclusion and Its Importance
It is a given that a diversified workforce from the C-Suite to the factory floor is essential for success in today’s world. Inclusion focuses on the person as a whole. Early intervention into behavior health can create what has been termed “violence awareness.” Here, the claims professionals and employers can assist in identifying concerns to mitigate anxiety and understand social barriers.
Proactive improvements in this holistic approach can help decrease mental claim costs and also identify potential safety concerns for the worker, workplace, and community. A need exists for even greater communication and collaboration from the employers, safety teams, claims professionals, and defense counsel for a streamlined, team-centric approach.
Burnout Syndrome and Empathic Employers
Employees are darn tired. Burnout Syndrome is real. “Suck it up, buttercup” does not cut it anymore. A typical employee wears so many hats in the world today—caregivers, weekend warriors, coaches, pet parents, and even the constantly connected individual where workplace and home life morph into one state of existence. This quick list is just a fraction of the roles individuals contend with.
Programs and flexibility are necessary to keep a happy, productive, profitable workforce. European nations have led the way with various leaves, hybrid work arrangements, shortened work weeks, and “disconnection laws” limiting employers communication with employees when the employees is away from work.
An empathetic-employer approach has shown to increase positive outcomes in the injury recovery and a decrease in work incidents. From an employer standpoint, an environment that supports a healthy holistic lifestyle makes for a an invested worker.
Building a fulfilling workplace will be the next-gen model for success. Work accidents decrease when fatigue decreases. Buy-in occurs when individuals feel they matter, safety matters, and what they are doing matters. This model will be the formula for success and cost control in 2024 and beyond.
About the Author:
Tricia G. Bellich is a partner at Lewis Brisbois. tricia.bellich@lewisbrisbois.com