Blog Authored by:  Ken Mogren, CPCU

It’s Insurance Fraud Awareness Week in Minnesota, but that’s nothing to celebrate. Insurance fraud hurts us all, even though we hardly notice the pain. Every time we pay an insurance bill, we’re handing over money that will find it’s way into the pockets of people who abuse the system.

While many insurance bills break down the premium so you can see the cost of the coverages you’ve purchased, they don’t break out the cost of fraud. It’s imbedded in your premiums. If it was a separate line item, you would be outraged.

How big is the problem?  $80 Billion nationally. That number doesn’t mean much until it’s put in perspective. One way of looking at it is to compare it to the cost of shoplifting. We all know we pay more at the store because retailers invisibly pass on their shoplifting losses to consumers in the form of higher prices. So do insurance companies, but the cost to the public for insurance fraud is  about 6 times higher than the cost of shoplifting. It works out to an average of about $1000 per year for each US family. Even if your insurance needs and costs are low, remember the cost of insurance fraud is imbedded in the prices of everything you purchase because the providers of all goods and services price their insurance costs into what you pay.

Why aren’t the jails full if it’s such a big problem? While some professional criminals do get busted, much of the cost come from normally law biding folks who abuse the system in ways they don’t even think of as crimes. Padding a claim or fibbing a bit on applications for insurance is where much of the cost to insurers happens and this cost ultimately gets shared by everyone in society.

To read more about insurance fraud, including some great stories about dumb crooks who got caught, check out www.insurancefraud.org.

Blog Authored by: Jeanne Hines, SPHR

We spend about 2,000 hours every year at our jobs.  For some, the job is the best part of their day.  For others, it is much less desirable.  Which employee will make the best contribution?  If everyone in your organization was positive and motivated, what kind of difference would that make?

One of the five elements of our holistic approach to wellness is career well-being.  Career well-being is concerned with how we occupy our time and how much we enjoy what we do every day.  A healthy individual seeks things to do and has something to look forward to every day.  It is what we spend our time doing each day that shapes our identity.  For a lot of us, it's our job, but for others it's their role as a spouse, parent, student, volunteer, retiree, or something else.

A healthy worksite culture encourages the growth and development of employees through a plan showing how an employee may advance to their next position.  Once this foundation element is in place, you may chose to move onto adding a development plan to each of these levels that includes the skills, knowledge, training, education & experience needed to achieve each step. 

Many companies think they're too small to have career paths.  If that's the case in your company, have you thought about other ways to encourage career well-being?  A simple way to encourage positive morale is recognition for a job well-done.  Depending on the person's preference and the company's culture, recognition could come in many forms.  A written "thank you" from the supervisor or business owner is a meaningful way to express recognition.  It is most effective when it states a specific accomplishment and what actions the person took that were outstanding. 

Other ways to recognize people include gift cards, mention in the company's newsletter or other communication piece, flowers, time off and, of course, a bonus.  All of these kinds of recognition serve to reinforce the positive behavior you wish to have repeated. 

The goal in this effort is to provide stability to the workforce, employees who can grow with the company, more productivity, and less stress for all. 

Blog Authored by:  Garry Watts, CPCU

What benefits are available under Workers’ Compensation?

Workers’ Compensation Benefits are available to employees who are unable to work because of a work related accident or illness.  The injured employee will be indemnified for lost wages as a result of the work related injury if he/she is medically authorized off from work.  Typically, lost time benefits are a percentage of the injured employee’s pre-injury wage.  In addition to all medical expenses related to the treatment, rehabilitation is also typically covered.

What is a waiting period?

It is the period from the date of the injury to when the workers’ compensation benefits start accruing.  The waiting period may be paid retroactively as determined by your states designated retroactive period.

In the tri-state area, Minnesota, Wisconsin and Iowa all have three day waiting periods.  There is a difference, though, in how the three days are applied in each state.

• Minnesota:  Includes the date of injury plus two days = Friday injury means employee must return to work by Monday or it would become a loss of time claim.
• Wisconsin:  Excludes date of injury and Sundays = Friday injury means employee must return to work by Tuesday or it’s a loss of time claim.
• Iowa:  Excludes date of injury and last day worked = Friday injury means the employee must return to work by Wednesday or it is a loss of time injury.

What is the disability date for occupation disease?

The date of injury is set by the first time an employee loses time due to the injury or disability.  This time may be paid or unpaid.

What is an IME?

An Independent Medical Exam (IME) is a medical exam of the injured worker by a medical professional other than the treating doctor who conducted the original examination of the injured worker.  The insurance company or employers are entitled to an IME to challenge the treating physician’s diagnosis, the recommended treatment plan, or whether the injury is work related.

What happens if parties have a dispute that cannot be resolved?

Workers, employers and insurance carriers may file an application for hearings to resolve disputes.  Employees file most hearing applications.  The application notifies the state of the dispute and initiates the legal process.  Legal disputes can be settled by stipulation, arbitration and proceeding with a formal hearing.