Why $0 Healthcare Benefits Are Key to Reducing Workers’ Compensation Premiums

She had been managing a 55-employee manufacturing plant in Pennsylvania as its operations manager, witnessing a sustained increase in premiums over the years. But what she couldn't have anticipated was a 36% spike in premiums, adding $58,000 to their bills.

Her CFO told her, "We have to decrease our workers' compensation premiums, or we're going to reduce our headcount."

With WoW Health's options of offering a $0 healthcare plan in conjunction with a Tax Relief program, Elena's firm was able to not only lower their workers' compensation, but actually slash it by 28%!

 

What: The Hidden Barrier Driving Up Claims

But those few days turn into a week. The strain becomes inflammation. Inflammation becomes a serious injury. And what would have taken a visit to the doctor and perhaps some over-the-counter medication to cure becomes a workers' comp claim with extensive treatment.

Employees had access to medical consultation via telemedicine, without being asked to shell out a single penny. No co-pay. No deductible. No excuses.

 

Instant Access

The 24/7 telehealth services allowed the employees' problems to be attended to within a matter of hours.

 

Complete Cure

$0 medications at 70,000+ pharmacies ensured employees actually completed prescribed treatment plans.

The result? Minor issues stayed minor. And workers' comp claims dropped dramatically.

In the first year of Elena

• Claims went down from 14 to 6


• Average claim cost reduced by 47%


• Lost workdays declined 62%

This is why $0 healthcare benefits are key to reducing workers' compensation premiums: they address the injuries at their source, before escalation.

 

Tax Relief Advantage

Savvy employers like Elena don't just use $0 healthcare benefits in a vacuum. They incorporate them with Tax Relief strategies that layer on additional financial benefits.

By offering their employees a Section 125 Cafeteria Plan, employers can:

Lower the Taxable Payroll

Pre-tax employee contributions reduce the taxable wage base of the company.

Save on FICA Taxes

Smaller taxable payroll means immediate Tax Relief in the way of reduced FICA obligations, or 7.65% savings.

Efficient Investing of the Fund Benefits

The same dollars that produce the Tax Relief fund the $0 healthcare benefits that reduce workers' compensation premiums.

Elena's company had results such as:

• $16,800 in annual Tax Relief through FICA savings


• $41,000 reduction in workers' comp premium


• Total savings: $57,800 per year

It's this dual benefit of

This dual benefit-Tax Relief plus workers' comp reduction-makes the strategy exponentially more powerful.

 

The Three Critical Elements

WoW Health's approach to reducing workers' compensation premiums is based on three interdependent components:

 

1. Immediate Intervention

$0 telehealth allows same-day consults when injuries or health concerns arise and helps prevent minor issues from becoming major claims.

 

2. Completion of treatment

Free medications and follow-up care make sure employees follow through with recovery protocols, preventing re-injury and chronic problems.

 

3. Preventive Wellness

Wellness coaching, mental health counseling, and management of chronic conditions keep employees overall healthier, reducing the likelihood of an injury.

Together, these elements create the conditions necessary for workers' compensation premiums to drop substantially.

 

Why Traditional Approaches Fall Short

Prior to finding $0 healthcare benefits, Elena attempted traditional approaches:

Safety Training

Helpful, but didn't point out health barriers increasing the risk of injury.

Equipment Upgrades

Reduced specific risks but failed to reduce the overall risk or improve employees' general health.

Return-to-Work Programs

Maintained current claims without deterring new ones.

 

None of these approaches removed the essential barrier:

Employees could not afford early detection of health problems.

Only $0 healthcare benefits would completely eliminate this barrier and create the dramatic results Elena needed in order to reduce workers' compensation premiums.

 

The Mental Health Factor

One of the more surprising positive outcomes Elena found was that of the unlimited mental health counseling.

Workers who were stressed, anxious, or experiencing personal problems had much higher rates of accidents. Conventional counseling, at over $150 per session, was quite beyond the reach of most workers.

With $0 counseling access:

• Stress-related incidents fell 34%


• Focus and safety compliance measurably improved


• There was an overall dramatic strengthening of workplace culture.

Mental health support became the key in Elena's strategy for reducing workers' compensation premiums.

 

Real Results. Sustainable Savings.

Elena's performance wasn't a chance. A consistent pattern came out:

Month 1-3:

Employees began consistently using telehealth, addressing issues early on.

Month 4-6:

Frequencies of claims reduced because early intervention prevented escalation.

Month 7-12:

Wellness improvements were compounded, creating progressively healthier workers.

Renewal

The savings are continuous, year after year, as long as the program continues.

$0 healthcare benefits, which reduce workers' compensation premiums, can be implemented as follows:

• Evaluate Current Costs

• Partner With WoW Health

• Launch Benefits

 

Final Thoughts

Among the most powerful financial strategies available to employers is the opportunity to lower their workers' compensation premiums because of $0 healthcare benefits.

By removing cost barriers to care, employers establish the circumstances where:

• Employees report injuries instantly


• Treatment is completed consistently


• Chronic conditions are effectively managed


• Mental health is supported proactively


• Continuous improvement of overall workforce health.

When combined with Tax Relief, the results are amplified and compounded into payroll taxes, healthcare expenses, and workers' comp rates concurrently.

Every cycle of renewal inthe absence of such benefits means continued high costs.

Get your free consultation scheduled today with WoW Health and find out about the many ways that zero-dollar healthcare can help you lower your workers' compensation costs and create a healthier and safer work environment.

 

FAQs

1. Why are $0 healthcare benefits more effective than traditional safety programs?

Existing safety programs, although attempting to address the safety concerns, do not remove financial constraints for employees seeking early treatment when problems arise. Healthcare benefits at $0 ensure immediate intervention of problems before they reach epidemic proportions and become costly workers' compensation claims. This is the key to lower workers' compensation.

 

2. What is Tax Relief, a nd how does it work with $0 healthcare benefits?

Tax Relief approaches like Section 125 Cafeteria Plans help to lower taxable payroll costs by pre-tax contributions, thus giving employers immediate savings in FICA. This is the same model by which the $0 healthcare benefits are provided, lowering workers' compensation premiums and thereby giving employers a double savings opportunity.

 

3. How soon can employers expect to reduce their workers' compensation premiums?

The majority of employers notice a decrease in claim frequencies in 6-12 months. Actual premium savings occur at renewal after documentation of improved claim history. Strong results can lead to premium savings of 20-35% at the first renewal after program implementation.

 

4. What makes $0 healthcare benefits different from traditional wellness programs?

Additionally, most traditional wellness programs do not have good participation because of cost issues. However, with $0 healthcare programs, all cost issues and problems are eliminated, and employees get 24/7 access to telehealth services and unlimited mental health counseling. This results in better outcomes for reducing worker compensation premiums.

 

5. Can small businesses benefit from this approach?

Absolutely. Companies as small as 10 employees can implement $0 healthcare benefits and yet see results. "The proportional dollar savings are generally maximized at small companies since each dollar saved in claims reduces their experience modification and potential to lower their workers' comp costs."