If you’re an Oregon business owner, you need to be aware of workers' compensation regulations to adhere to your responsibilities as an employer. Unfortunately, there are many common myths out there about Oregon's workers' compensation laws that throw employers off and cause them to make mistakes that cost them time and money.

Being aware of the following myths is a good first step to making sure you meet your workers’ comp responsibilities as a business owner. In this way, you can keep your employees safe and covered, and avoid any costly fees as a result of violations.

Myth #1: You don't have to do anything as an employer after a claim is paid for

False. An employer can be expected to remain in contact with an employee even after the claim has been paid for. They may be required to keep the lines of communication open and understand how their injury is healing. This way, employers can get injured employees enrolled in a return to work program – without this, you may be in violation of discriminating against a worker for their disability (or injury). However, when you enroll an employee in a “return to work” program, you can help decrease the number of lost work days (and lost wages) that are caused by the injury. These programs can also minimize any decreases in productivity caused by workplace injuries. 

Myth #2: You can maximize the effectiveness of managed care with large discount networks

The success of large managed care networks has not been complete or definite. While these networks were established to resolve workers' comp issues in the 90's, they don't necessarily resolve the problems of rising medical costs. The best way to solve this issue is control utilization and target doctor specialties that lead to the best treatments for injuries. 

Myth #3: Technology is always the solution to workers' comp problems

Technology resources can often make managing workers' compensation claims easier. However, it's important to understand that not every app or piece of software that comes along will be beneficial. Taking advantage of technology means making sure that it fits your company's needs. Before you invest in any new technology, put enough time into researching how exactly it will benefit you and if those benefits will make the investment worthwhile. 

Myth #4: Claim amounts will decrease if claim processing is delayed

Adjusters are sometimes tempted to put aside a high cost or complicated claim in hopes that it will become easier to handle, or even more affordable, over time. However, delaying is only likely to complicate the issue. A delayed claim can result in more missed work time because of an injury. Also, if treatment is delayed, medical costs could rise astronomically as it could worsen over time. 

Myth #5: Most medical reports following AMA guides are inaccurate

This one is mostly false, but you can see where the myth stems from because it's true that the writers of the AMA guidelines have said that doctor discretion is paramount, i.e. you can’t violate doctor/patient confidentiality concerning the patient’s impairment rating. And while the AMA guides were written by medical professionals, they do not trump the impairment rating of the patient's actual doctor.

So while this doesn't make medical reports inaccurate for following AMA guidelines. Doctors can use these guides to make decisions regarding the patient’s impairment rating, if they understand both the guide and case law. 

Myth #6: FECA and state Workers' Comp regulations are too different to allow case management practices created in the private sector to function effectively

It's true that workers' comp regulations stipulated by federal and state governments tend to differ. However, this doesn't mean that private sector case management is incapable of meeting these diverse demands. In recent years, the federal government has become more aware of best practices in the industry that can make it easier for private case management practices to handle workers' compensation demands. 

Myth #7: CMS approval is binding

Any approval from Centers for Medicare & Medicaid Services (CMS) is not necessarily binding because it is not mandated by either state or federal laws. Because there is no appeal process, it is simply an approval that is given at CMS’ discretion. In other words, it is not binding to parties of a claim settlement. 

Myth #8: The costs of workers' compensation insurance has become unreasonable

It's true that many companies face the highest workers' compensation rates than ever before. It's assumed that these rising costs are going to pay lawyer fees for frivolous lawsuits. However, the truth is that individual business owners are able to- and responsible for- managing workers' compensation costs in an affordable way. It's still possible to affordably handle this with careful research into the options and the development of a good return to work program.

With all the misinformation out there, it’s easy to get lost in a field of research that ends up being, well, rather fruitless. However, this is all the more reason to hire a PEO for your Human Resources needs. PEO’s know the industry, know the jargon, know the laws, liabilities and responsibilities. If you find yourself struggling with workers’ comp claims and you’re losing valuable work hours that could go to furthering your business, then consider outsourcing to WeDoHR. We’ll be able to help you with all your payroll, workers’ comp, and human resources needs.