Why offer RTW in a "Permanency" state?

A permanency state is a jurisdiction (state) that awards monetary compensation which reflects a functional loss of a particular body part (or parts).  Each state has a pre-determined method for calculating the amount (typically in weeks) of which a particular body part is valued.  In most instances, permanency evaluation is based on a percentage, or a number of degrees, of impairment.  Permanency is not valued until an injured worker is at maximum medical improvement (MMI). This is determined by a physician, who opines that the injured worker (IW) will no longer improve with additional medical intervention.

In permanency states, it is often assumed that the goal is to get the injured worker to MMI, get their rating, and get it resolved.  This is not always the best way to go.

The benefits of offering work as a therapeutic tool are illustrated by the following scenario:

IW sustains a shoulder injury requiring surgery.  MMI is projected 3-6 months from the surgery date.  The employer wants to hurry the claim along and get the IW's rating to close the claim.  The claim representative realizes that the IW's rating after 12 weeks post-op will be significantly impacted by the IW's inability to lift more than 25 lbs. overhead. The employer states they cannot permanently accommodate these restrictions. The claim representative has a discussion with the employer about bringing the IW back to work modified duty.  The IW returns to modified duty and receives the benefits of being physically active at work (within the prescribed restrictions).  As the IW continues to work, their restrictions become less stringent.

After working for another 3 months, the IW is deemed at MMI and receives their permanency rating, which is now based on the IW's ability to lift 50 lbs. overhead.  The increased lifting ability significantly reduces the amount of the IW's permanency rating.  This also reduces the Employer's claim costs, provides a productive employee, and increases morale around the workplace.  The IW improves physically, returns to earning their pre-injury wages, is motivated by their increased physical abilities and feels like a valued member of the workplace.

How is this not a win-win for everyone involved? 

Need to start a Return to Wellness program in your workplace?  Visit Eastern Alliance Insurance Group's website to download a RTW program or a guide to build your own.