One of the buzzwords in workers compensation these days is “cost containment”–the practice of managing and mitigating the medical costs of claims. With employers and insurers being hit by ever-higher premiums, everyone seems to be looking for ways to hold down claim expenses while still delivering appropriate levels of care to injured workers.

Savvy employers demand that their file reviews include an examination of cost-containment measures. Unfortunately, many insurance brokers (and their claims specialists) interpret this to mean only that they need to verify that the claims-handler (typically a third-party administrator or an insurance company's claims department) is undertaking cost-containment efforts. Is bill review being done? Check. How about utilization review on the more serious cases? Check. Are injured workers treated by providers in a network? Check. Sounds like cost containment is A-OK.

Or is it? Yes, you've verified that your client is receiving cost-containment services–but is your client saving any money? To find out, you will have to dig a little deeper. By asking a few questions, you can show clients that you are looking past the basics–and looking out for them. You might even discover that their actual costs are quite different from what they imagined.