Injury Prevention & Cost Control Alert - March 6, 2009

§  Expert says companies are throwing money away

Question: How do you make 50% of all comp claims disappear?

The answer is fairly simple.

You confront injured employees with a drug test, says Bill Judge, and expert in the field.

The savings are there for the taking. Hundreds, thousands, maybe even millions of dollars.

Sadly, in far too many cases, those bucks are slipping through companies' fingers and ending up in the coffers of insurance carrriers - or worse. 

Millions, maybe billions, are finding their way into the pockets of employees who drink or take drugs- while they’re at work- and who wind up getting hurt as a result.  

Worth the effort
What isn’t always as simple is grasping, and using, the wide variety of laws and opportunities that exist. 
Still, the potential benefits can make the effort more than worthwhile. 
For some perspective, check out these numbers. Studies show that: 

·        Drug-using employees are 3.6 times more likely to be involved in workplace accidents and five times more likely to file comp claims. 

·        Between 38% and 50% of all comp claims are related to substance abuse. 

·        About 15% of the U.S. workforce admits to having been under the influence of alcohol while at work. 

 Ready-made defense 

Can you always keep all employees straight and sober? Maybe not. But you can make it a lot tougher for them to get comp if they’re not. 

Almost all states have provisions for intoxication defenses. In those states, if you can show that an injured employee was under the influence, you have a good chance to defeat a claim. 

And many states go much further, says Judge. They have “presumptive denial” provisions. In other words, a positive test after an accident is presumed to reveal the cause of the accident, and comp is automatically denied. 

Still other states offer mandated insurance discounts- ranging from 5% to 20%- for employers who implement drug-testing programs that meet their guidelines. 

Want more? Another study found that companies with thorough drug-testing programs achieved an 11.4% reduction in their mod rates and more than 50% reduction in injuries. 

 The right guidelines 

The first step – and it often turns into a misstep, says Judge – is knowing what laws and opportunities exist in your state. Your legal department or lawyer may be able to help. 

Additionally, Judge has a Web site (centerfordrugtestinformation.com) that provides detailed information on all state laws (at a cost of $589 per year). 

The mistake many make? They rely on federal guidelines – which date back significantly from states’. 

Once you’re set up, says Judge, the keys are to carry out tests properly (again, according to state guidelines) and to immediately alert your carrier or other relevant parties if a test turns up positive – since time frames for using intoxication defenses can be limited.  

 Watch these pitfalls

Two other common mistakes also keep companies from reaping the potential benefits, says Judge. 

One is wanting to treat everyone the same – from the CEO to the guy who sweeps the floor at night. 

Since many states limit random testing to safety-sensitive positions, taking that approach can short-circuit an entire program.

And finally, says Judge, people make the mistake of wanting to “keep things simple” instead of taking advantage of new science. 

Example: 30 years ago federal guidelines required urine samples. New saliva tests are both much cheaper and easier to administer.