Heard Of A "Cost Containment Certification" For Workers Comp?

Mike Finley

Has anybody else heard of a cost containment certification process for wokers comp or is this a Colorado thing? I got a letter a few weeks ago from my provider telling me that along with some other qualifications if I had the certification by renewel I would get a 5% discount on my rates.

Initially this looked like a pretty simple procedure, but the information they faxed to me became more generic and then I saw they offer a seminar to teach you how to do it and the seminar runs $800 bucks!

Debookkeeper

I did a search to see what it was - I haven't heard of it before. Looks like there are actual company/companies that do this. Seems they are the ones that handle the WC claims and qualify the claim and the amount of medical treatment the person will receive. They make their money based on a percentage of how much they save you in WC claims. (they must have some deal worked out with insurance companies) I would guess that unless you have hundreds of employees and a high amount of workers comp claims, this is meaningless.

Mike Finley

hmm, I'm not sure we are on the same page. Here is some info from my WC provider about it.

The State of Colorado Cost Containment Certification (CCC)
Board requires a safety and cost containment program that complies
with guidelines set by the board. Pinnacol Assurance
makes creating this program easy. The program includes the following:
1. A safety policy statement
2. A safety committee or coordinator
3. Posted safety rules
4. Consistent safety training
5. A designated medical provider
6. Claims management procedures

The CCC Process
1. Develop a safety/cost containment program that complies
with the guidelines set by the Colorado CCC Board is
required.
2. The company must successfully implement the program for
one year.
3. The company submits an application and examples of successful
implementation to the Colorado CCC Board. The
application is available through either the state of Colorado
or Pinnacol Assurance.
4. The board reviews both the program and either approves or
denies the company’s application for certification.

The CCC Discount
Once a company receives certification, Pinnacol
Assurance, or any workers' compensation insurance
carrier, will apply a discount to the policy at the next
renewal period after certification. A 5 percent discount
is applied to companies with:
➣ An experience modification rating
➣ Lower frequency and severity of losses for the most
recent policy period as compared with those from the
previous policy period.

On the surface the requirements don't sound like anything like I don't have already. I have a safety manual with a safety policy, I'm the safety coordinator and the safety committee, I don't know where I would post safety rules since we work in somebodies house, but employees get the safety manual. We have a designated medical provider and I think claims management procedures.

I'll find out sooner or later, I'm waiting for our companies "safety consultant" at the insurance company to return my call about all of this.

Debookkeeper

Interesting. I know WC varies from state to state, in CT we receive a discount for experience modification rating already. Do you? I also believe it is 5%. We are mailed a yearly report that states the rating.

I hate insurance. I could never work for an insurance company!

Mike Finley

Yeah, we have so many discounts it's crazy. Crazy good I should say. I get a discount when I initially signed up by joining a chamber of commerce of all things! The dollar amount of the discount was more than the annual fee for the chamber of commerce so why not? Then we have a 2.5% discount for choosing a designated medical provider, than a sliding scale from 0-10% for the experience rating. Now I want that CCC discount!

Hey, I'd rather be able to pass these savings on in the form of being able to pay employees a higher wage then send them off to WC!