Keeping an injured worker on salary is a pivotal part of increasing your refunds and decreasing your rates. Leading Age is implementing a mandatory Kept on Salary (KOS) policy effective July 1,2024.
In nearly all situations, paying at least 30 days of KOS has a financial benefit on each claim. Think of it as pre-purchasing discounts. When a claim has no time loss, it is a medical only claim. Each medical only claim has a discount of $3670. By paying KOS you keep time loss costs out of the rating calculations as well as the medical only discount, which decreases your rates.
KOS is an important piece of an effective return to work program. Paying KOS will keep the lines of communication open with the injured worker and allows the employer to maintain control over the claim. It also allows the worker to focus on recovery versus finances and often shortens the duration of the claim.
KOS is meant to be short term until the injured worker is physically able to return to light duty. KOS should begin as soon as the worker is unable to return to work from an injury or surgery. KOS ends as soon as the worker is approved to return to light duty and a formal light duty job is offered to the worker.
For KOS longer than 30 days, a financial analysis will be done to determine the financial impact to the individual employer. The financial analysis determines the experience factor and rate to calculate a break-even point. If continuing KOS beyond 30 days does not make financial sense or puts an employer beyond their break-even point, a KOS reimbursement will be issued to the individual employer from the Leading Age reserve fund. This minimizes the financial impact on the group, therefore increasing refunds.
If you have any questions about KOS or the reimbursement available, please contact Risk Finance.
Scott Dehem Monica Padgett
VP of Claims Claims Consultant
scott@riskfinance.net monica@riskfinance.net
360-438-0880 ext. 102 360-438-0880 ext. 103
