Workers’ Compensation claims costs can be high for several reasons, including the physical labor and machine use involved, complexity of injuries, and frequency of claims. There are measures all employers can take to help prevent workplace accidents and injuries – from robust safety practices to ongoing safety training and management.
At Prescient National, we also find that incorporating a Post-Offer Medical Questionnaire in an employer’s hiring process can be a valuable tool in preventing work-related injuries, lowering claims costs, and improving the company’s experience modification (ex-mod) factor.
How the POMQ Works
A Post-Offer Medical Questionnaire (POMQ) contains questions about a prospective employee’s medical history. In gathering relevant health information, the POMQ assists an employer in determining whether an individual can perform the job’s essential responsibilities with or without a reasonable accommodation. Its purpose is to assist in matching candidates to the physical needs of the job and to avoid placing employees in a position that is harmful to them, other staff members, and the company.
The POMQ must be done after an offer and before the placement of a job candidate. A POMQ cannot be used to discriminate against individuals. The Americans with Disabilities Act (ADA) allows employers to undertake medical inquiries on prospective employees as long as specific standards are fulfilled. An employer can use a POMQ after making an offer to a candidate but before starting work. The questions must be job-related and consistent with business necessity.
Physician Evaluation
The employer should provide a completed POMQ and thorough job description for which the candidate is being considered to a physician to determine whether the individual can safely do the necessary activities. Some red flags in the completed POMQ that may necessitate additional inquiry include impairment due to medication use, a present or chronic injury or medical condition, and prior surgeries.
Upon reviewing the POMQ and receiving feedback from the candidate, the physician will determine whether the applicant can do the job with or without reasonable accommodations. For example, let’s say the POMQ indicates the candidate had back surgery and the job requires lifting 50 pounds every day. The physician may determine the work involved is not the right fit for the candidate and there is no reasonable accommodation that will avoid compromising the candidate’s safety. The employer can then withdraw the job offer. On the other hand, the physician may determine whether the candidate can do the job if he or she is permitted to take a break and sit two or three times throughout the day. The employer must decide whether this is a reasonable accommodation for its operation to enable the candidate to meet the essential job requirements. The employer will assess the cost of doing so and whether such an accommodation would disrupt the business and cause undue hardship.
If a candidate who is hired does not disclose a medical condition on the POMQ and aggravates a preexisting workplace injury, the claim may be dismissed in many states. In most situations, the injury or worsening must be to the same body area where the candidate previously sustained an undisclosed injury. Typically, an employer must demonstrate that the candidate would not have been hired if he or she had disclosed the prior injury and that the injury would have prevented the candidate from safely performing the essential functions of the work, with or without a reasonable accommodation.
POMQ Success Story
To illustrate how a POMQ benefits employers, we’d like to share how one of our insureds lowered its claims costs and improved its ex-mod.
Before becoming our client, the company averaged $200,000 in losses per year for several consecutive years. When we took over the account, our services included recommending several programs to help prevent injuries and reduce costs, including POMQ implementation.
The client implemented a POMQ in its hiring process. As a result, the company’s average claims costs went from $200,000 to $50,000, and its ex-mod factor went from 1.42 to 0.90. Without a doubt, the POMQ contributed to lowering the client’s claims costs and improving its loss experience, which had a direct impact on the business’s Workers’ Compensation insurance costs.
We firmly believe that well-informed recruiting decisions reduce expenses and increase employer profitability. When used properly, a POMQ is an effective tool for improving employee safety and reducing the number or severity of claims. Hiring personnel fit for duty increases employee productivity, protects employers from legal liabilities, and improves overall organizational safety.
