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Member Helper - AWB Has a Program to Solve Your Workers' Comp Headache |
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Written On: November/December 2004 |
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Written By: by Daniel Brunell |
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CompWise Refunds Millions to AWB Members
Workers’ compensation continues to be a contentious issue in Washington state and fighting for reform remains a top priority for the Association of Washington Business. From its remarkable creation by Mark Reed in 1917, the principle goal of the workers’ compensation system was to provide the best care to workers so they could return to work in the most efficient and effective way possible. Although the system is plagued with many challenges, one program continues stand out as a success and directly supports the vision Mark Reed had in 1917. That program is called Retrospective Rating (Retro).
To give smaller employers a similar advantage as larger employers who were allowed to self-insure, the Dept. of Labor & Industries (L&I) launched Retrospective Rating in 1982. Retro allows organizations like AWB to pool together premium dollars of members in similar industries. Through aggressive claims management and safety consulting services, CompWise helps members maintain a safe workplace, resulting in lower workers’ comp costs. The program has proven to be a win-win for both employers and employees.
"We enrolled our company in AWB's Compwise Program in 1998 and couldn't be more pleased with the results,” said Judy Coovert, Secretary/Treasurer of PrintCom, Inc. “Of course the premium refunds are always welcomed, but one of the best aspects is the claims management assistance. We are a small business with little experience in this area, and it gives me such peace of mind to know I can rely on professionals to guide me through the process. It's hard to believe that you save so much money and also get such a great benefit!"
Since 1998, AWB’s CompWise Retro program has returned to its members nearly $20 million in premiums. Being able to return significant refunds to employer members is a direct reflection of the commitment employers have to improve workplace safety. In addition to giving premium dollars back to members, a goal of AWB CompWise is to lower up-front premiums employers pay to L&I.
“Providing incentives to employers for promoting a safer workplace is at the heart of CompWise,” said Deb Brown, senior vice president of Member Services of AWB. “The success of this program is a great testimony to our members. More than anything, I think this program demonstrates that employers have a vital interest in the health and success of their workforce.”
CompWise is available to qualifying members of AWB and programs are available for manufacturers, service, retail, wholesale companies and temporary employers. To ensure the best possible results for all members participating in CompWise, firms are screened to ensure they meet the group’s performance standards. During the year, individual members’ performance is monitored to increase the group’s refund potential, and the group refund is the total premiums minus the cost of claims. To facilitate successful results, CompWise offers a wide range of services like safety consulting, including personalized on-site visits, return-to-work programs, and proactive claims management.
Members of AWB CompWise have more control over their individual refund potential because the program uses a merit-based refund formula — the better an individual firm’s performance, the higher the refund. Some companies with no claims have received refunds as high as 60 percent. In addition, CompWise returns all the refund dollars back to the employer — no portion of the refund is retained. All service fees are charged up front so that there are no hidden costs.
A key aspect of Retro is that it allows employers with similar risk classes to pool premiums together. This is important as the larger the premium base, the more predictable the group’s performance. By pooling risk, employers are generally able to realize substantially larger returns while reducing the downside risk potential over individual Retro programs.
Despite the occasional heartburn employers might experience, “Having workers’ compensation insurance is a good thing for employers,” reminds Jon Teague, AWB’s director of risk management for workers’ compensation. “Imagine owning a small business in a jurisdiction where there isn’t workers’ compensation coverage, and you’re found liable for a half-million-dollar claim. How many of us could survive such a catastrophe? By participating in CompWise’s successful Retro program our members have the best shot at equilibrium.”
CompWise also provides risk consultation services for those employers who might not quite be ready for a retro program but want to improve their workers’ compensation results.
With ever increasing workers’ compensation rates and our state’s current economy it makes sense to participate in CompWise. For more information, contact Jon Teague, director of risk management for workers’ compensation, at (360) 943-1600 or jont@awb.org.
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