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The Top Ten Ways to Reduce a Mod:
Your Suggestions

Your suggestions, in order of frequency were: 

1. Enact a return to work program appropriate for the employee’s limited work abilities.

2. Conduct pre-employment, post accident and random drug testing. You may notice this ties in nicely with our previous NewSolutions article on drug testing.

3. Implement a robust safety program that starts with initial new hire training, is followed up on a regular basis, and places the burden of accountability on the line managers.
   
   Many of you emphasized the need for top down priority in this area. Safety programs have been highly recommended for years.  Apparently, they are not very effective unless senior management emphasizes the strategic importance of these programs to the organization as a whole.

4. Verify the accuracy of the mod computation – mistakes are more common than you think! We would expect this suggestion from our ModMaster users, who are well acquainted with computing, analyzing and verifying a mod.

5. Report and manage claims promptly.
   

6. Carry a large deductible and pay smaller claims. This will vary by state depending on whether you are in a gross or net reporting state.
   

7. Review claims with your claims handling administrator on a regular basis for a certain claim threshold (i.e. claims greater than $10,000).
   

8. Be aware of tasks that seem to repeatedly cause injuries and change the nature of these tasks.
   

9. Motivate your client and their management by highlighting the true cost of the loss. The motivation, which can be accomplished through analyses such as those provided in ModMaster, helps make implementation of one of the top 5 suggestions easier!
   

10. Implement a company wide rewards program for reduced claim frequency.

Implementing some of these suggestions becomes easier when you use ModMaster...

ModMaster can help you with:

suggestion #4, verifying the accuracy of the mod computation;

suggestion #6, experimenting with the effect of deductibles through our What-If Analysis function;

suggestion # 8, by using the Cause of Loss, Injury Type, and Loss Identifier reports and/or graphs to help spot trends in losses;

suggestion #9, by using the Specific Loss report to show the cost of specific losses in terms of impact on the mod and the corresponding premium dollars;

suggestion #10, by using the Ratio Analysis report to analyze both the frequency and severity of losses.