In the aftermath of California's new workers' compensation reform bill, employers have a choice. They can wait passively for premiums to drop, which is already starting to happen. Or they can take a proactive role in helping to drive down premiums even lower, which will produce far greater savings over time.

To reap the full benefit of the reform, we urge employers to treat the new law as a call to action. The steepest rate reductions will occur when you help:

• fight fraud;
• promote workplace safety to prevent accidents;
• report claims to us promptly; and
• pave the way for injured employees to return to work.

Zenith is the industry leader in fighting fraud. Over the last 20 years, we've taken a consistently aggressive stance in investigating questionable claims and exposing fraud rings throughout California. These illegal practices hurt all of us by straining the system and contributing to soaring workers' comp premiums.

Call Zenith at (800) 440-5020 if you have any questions, concerns or observations relating to possible fraud, such as questionable medical bills incurred by injured workers. Or email us at info@thezenith.com. Click here to learn more about the red flags of fraud.

Create a healthy work environment that rewards and reinforces safe practices for your employees. Raise awareness about how to prevent accidents and how to identify and eliminate hazards. Zenith's team of safety experts can help, and we have lots of free resources you can use to train employees to operate tools and machinery safely.

Notify Zenith immediately of any claim by calling 800-440-5020. The sooner you report a claim to us, the faster we can gather information and help the injured employee get the appropriate medical care. Speedy claim reporting allows us to provide more responsive service and, ultimately, lowers the cost of your claim.

The Inside Scoop on Workers' Compensation Reform

The sweeping reform bill that passed on April 19, 2004 sets the stage for cost savings. But all of us must work together to extract the greatest savings embedded in the reforms. The cost savings are not easy to come by or automatic; they require all parties to redouble their efforts to improve the system so that it operates at peak efficiency.

To tap the full benefits of reform, Zenith wants to team up with you in new ways. How? Let's collaborate more frequently on return-to-work programs, fraud investigations and safety campaigns for your employees. We have great resources to help you in all these areas. Each hour we partner together is an investment in working to lower claims costs.

Under the reform bill, workers' compensation insurers may establish a medical-provider network on or after January 1, 2005 to treat injured employees. When this medical network is in place, you should direct all treatment for injured workers into the network. For help in finding a medical provider for your employees, email us at medicalprovider@thezenith.com.

What you can do: Start teaching employees about the benefit of this new network-that they will receive quality medical care from experienced specialists.

Prompt reporting of claims matters more than ever under the new reform bill. As the employer of an injured worker, you can authorize immediate medical treatment within the network up to $10,000 for all employees who file claim forms, until the claim is accepted or denied. Any delay in notifying Zenith of a claim will expose the carrier to liability up to the $10,000 cap.

The reform bill also sets new rules that govern how employers must keep jobs open for injured employees who miss work. You must offer continued employment to an injured worker for at least 12 months within 60 days of the date that the employee is medically determined to be permanent and stationery.

If you do not offer continued employment to the injured worker-and you have 50 or more employees-you will add to the cost of the claim. That's because the weekly permanent disability rate will increase 15% and the injured employee may qualify for a supplemental job displacement voucher.

What you can do: Stay in close touch with injured employees who miss work. Propose a plan for them to return to work in a transitional job if they are unable to perform their former job duties. Submit written offers of transitional work to the employee; the letter should describe the duties of the transitional job and its hours and salary, along with the date and time that you want the employee to return to work. After the employee begins a transitional job, support the worker and adjust the transitional tasks as work restrictions change. Maintain an updated job description (that lists the worker's transitional duties) and send it to the treating physician.