Will Recent Legislative Action Really Cure Employer Ills In The Workers Comp System?

Recent legislative action in Texas will not create immediate relief for business owners in Texas.

Flower Mound, TX (PRWEB) April 7, 2005 -- The Texas House of Representatives recently passed House Bill 7 which calls for the overhaul of the Texas Workers Compensation system. This follows on the footsteps of the Texas Senate passing Senate Bill 5 that approved a similar overhaul. Both bills are a reflection of the Sunset Committee recommendations, which advocated the dissolution of the Texas Workers Compensation Commission and authorizing the Texas Department of Insurance to oversee and regulate the Texas Workers Compensation program.

The main feature of the overhaul seems to be the provision for medical provider groups determined by the insurance carrier. In conversations with several legislators the feeling is an increase in the efficiency of delivering medical care will create savings in both real dollars and in time lost due to workplace injuries. The real question seems to go unanswered: How does the employer really benefit from these changes? Cary Duke, a Certified Work Comp Advisor based in Texas, (www.TheCompExpert.com) believes employers will not see any significant savings from the proposed changes in either legislative bill. The proposed changes impact injured employees and the delivery of medical care with the promise of a more efficient workers compensation system.    

Employers who really want savings in their own workers comp expense should be taking control of their own situation. A change in their thought process concerning the entire realm of workers compensation will lead to greater and faster savings in the workers compensation expense.

Malcolm Gladwell, in his book, "The Tipping Point," suggests there is Power of Context that is responsible for certain actions. His theory was partially in response to the Broken Window Theory as put forth by James Q. Wilson and George Kelling. The Broken Window theory basically states the broken window is a signal that no one is in charge and no cares. Further decay will occur as a result leading to the attraction of greater and greater tolerance for crime. New York City utilized this theory to attack a crime epidemic in the subway, initially, and throughout the city with astonishing and quick results in the early 1990s. They attacked the housekeeping" issues of graffiti and fare busting on the subways, i.e., the broken windows. They experienced a significant reduction in crime as a result within a relatively short amount of time and at very little cost.

Business owners and managers can do the same thing in their workplaces. Find the broken windows such as a tolerance for allowing some safety rules to be ignored. Fix the housekeeping issues and create an environment where it is not acceptable for failure to follow safety rules to exist.

Employers must believe:
- Workers compensation is not an insurance issue. It is a people problem. High frequency of injuries in a business is more likely a result of poor employee behavior, bad morale or economic conditions than safety.
-The least costly injury is the injury that never occurs. Effective safety and prevention programs are great investments.
-Management attitude is THE key to effectively reducing workplace injuries and the workers comp expense. When management adopts a zero-tolerance to safety issues that includes office staff and themselves, the workers most impacted by safety issues will quickly adapt to new policies and procedures.

Taking control of the workers compensation program internally is something every employer can do. This is not something the recent legislation will change.

Hopefully, the changes endorsed by both the House and the Senate will create a more efficient workers compensation system for Texas. The establishment of medical groups by the insurance carriers, similar to what is available in the personal health care system, should create more control over the delivery of medical care, creating savings. Ultimately, though, there is nothing in either bill that reduces the opportunity for the employee to get hurt. That rests squarely with the employer.

By creating an environment where peer group safety is encouraged and rewarded, where management is respected because of their concern for the employee, the business owner will reap additional benefits beyond saving money on workers comp. They will have fewer turnovers, higher morale, fewer injuries and loss time. This will allow employers to save money in their workers comp programs on a long-term basis. Dont depend on the legislature to create savings for you. Take control of your own workers comp program now.

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