A Four-Part Plan for Leveraging Work Comp TPA Services

How to Drive Better Outcomesthey at odds?  Adjusters and medical
If a member  of executive management walkedmanagement must partner on claims to drive the
into your office today and asked if you are usingbest outcomes.  Is your program designed to
your TPA (third-party administrator) asmake that happen? b.  Are you using  the right
effectively as possible to reduce claim costs,medical management services, on the right claims,
would you be able to answer with an emphaticat the right time?  This is one area where you
“YES?”  You might answer in thewant to avoid an “all or nothing”
affirmative, but would you be able tomentality.  Using medical management on ALL
demonstrate it clearly?  Even if this neverclaims is not the way to improve outcomes, nor
happens, why not ask yourself the very sameis requiring the TPA to ask for authorization to
question?use medical management on any claim.  For the
The claim management  program you have inbest results, claims should be triaged at intake,
place with your TPA must be dynamic, flexibleand again at appropriate intervals, to make sure
and responsive to changing needs and trends. medical management is engaged as soon as
Gone are the days when “what worked lastneeded for exactly what is needed. c.  Is the
year will certainly work now.”  Claim costsTPA’s provider  bill review program
are a significant item on the balance sheet, so anproducing above average results?  Is there
effective, state-of-the art claim managementanything YOU can do to improve the results (for
program has never been more important. example, posting PPO physician panels in
(Resource: workplaces, where allowed)?  Are you soft
To drive better  outcomes, you must continuallychanneling injured employees to PPO physicians,
reassess, refine and monitor your program.where allowed?d.  Are you using  a Pharmacy
 Focus your review on the following key areas:Benefit Manager (PBM) to reduce escalating
1.  Claims handling, from intake to settlement,pharmaceutical costs and utilization?  The savings
and everything in between -a.  Are you usingpotential is great and should not be
 the TPA’s most efficient method to reportoverlooked. e.  Also consider  Physician Peer
claims, i.e. reporting via the Internet?  Is the TPAReview (PPR) and Utilization Review (UR) services
planning any claim intake upgrades?  Are Bestto reduce costs.
Practices in place for claim intake and are they4.  Risk Management Information System
being met?b.  Are claims  consistently being(RMIS),  including reports and
handled as aggressively as possible?  Are yourbenchmarking studies –a.  Are you making
account instructions facilitating the claim process, the best possible use of the TPA’s RMIS? 
or hindering it?  Are the appropriate resourcesHave you, and other team members, received
and services being used, i.e., investigation,hands-on training on all system features and
surveillance, medical directors, defense counsel,functionality?  Are there any system
etc.?   c.  Is your TPA  meeting all Bestenhancements available that would be of benefit
Practices?  Are there any elements in yourto you? b.  Have you automated  the
program that make it harder for your TPA todistribution of reports to your divisions and
meet them?  Some of the best intended customlocations?  Are you using customizable data fields
processes actually have the opposite effect,that enable you to target loss control efforts? 
resulting in delays and inefficiencies. Resource:Ask your TPA for examples of how client
FREE WC IQ Test: Service model,  including“super users” leverage the power of the
staffing and caseloads - a.  Does the structuresystem.c.  Are you partnering  with your TPA
 of your program meet current needs?  Does iton benchmarking your losses against their book of
make sense to consider designated, dedicated orbusiness and externally, against industry peers?
regionalized staffing options?  What are the pros(workersxzcompxzkit)
and cons?  Ask the TPA for client serviceReach out  to your broker and industry peers
delivery success stories. b.  Are the bestfor ideas on how to make your TPA claim
adjusters on your claims?  Are caseloadsmanagement program as effective as it can be. 
reasonable?  Are the adjusters properlyAlso, ask your TPA if they have a client advisory
supervised (typical adjuster to supervisor ratio isgroup in which you can participate.  Think about
5 to 1)?  Some TPA’s, for a slightly higherhow good it will feel to answer “YES!”
per claim fee, will cap adjuster caseloads at awith no hesitation when executive management
lower number on your program.c.  Does yourasks if you are using your TPA as effectively as
TPA  have adjusters who are highly experiencedpossible…and, it will feel even better when you
and technically superior in certain industries or onare able to demonstrate it!
certain types of complex claims?  Can they beDo not use this information without independent
used on your claims, if appropriate?verification. All state laws vary. You should consult
3.  Medical management  services, when andwith your insurance broker about workers' comp
how -a.  Is medical management  integrated intoissues.
your claims management program (sometimes©2009 Amaxx Risk Solutions, Inc. All rights
referred to as a “clinical model”), or arereserved under International Copyright Law.