Employers urged to balance cost, compliance and care in comp claims

PHILADELPHIA — As medical inflation climbs, workforces age and workers compensation claims grow more complex, employers face increasing pressure to control costs and stay compliant without losing sight of the injured employee at the center of the claim.

That balancing act — managing rising expenses, navigating stricter regulatory demands and maintaining compassion for injured workers — was the focus of a Tuesday session at the RIMS Riskworld conference, where risk managers said consistency, early intervention and a “teammate first” mindset are critical to better outcomes.

Trish Staub, director of risk and insurance at St. Louis-based Graybar Electric Company, which provides electrical components, and Thomas Sussman, director of risk management at St. Louis-based Schnuck Markets, a grocery chain in several Midwest states, said medical inflation and an aging workforce are creating longer recovery timelines and more expensive claims.

Mr. Sussman noted that workers ages 65 to 74 are expected to rise significantly by 2033, increasing both injury frequency and claim severity. At the same time, employers are facing more sophisticated medical-legal ecosystems, where providers, attorneys and treatment networks are increasingly interconnected, making claims harder to manage.

The solution begins with consistency.

“We want compliance built into our framework,” Mr. Sussman said, describing what he called an “invisible compliance mindset,” where safety and claims discipline are embedded into everyday operations rather than treated as a reactive process. Both organizations emphasized nurse triage, early documentation, witness interviews, surveillance review and ISO searches as standard practice rather than optional steps. Ms. Staub said consistency creates defensibility, especially when claims escalate years later and witnesses or records may no longer be available.

But compliance alone is not enough.

Both speakers stressed that empathy and early intervention are equally important. Assigning nurse case managers, maintaining clear communication and helping employees return to work — even in light-duty roles — can reduce litigation and improve outcomes. For Schnuck Markets, about a third of claims go through a return-to-work program, helping employees stay connected to the workplace and speeding recovery. Graybar, whose smaller facilities make formal return-to-work programs harder, sometimes places employees temporarily with nonprofits to preserve routine and income.

“It’s easy to look at it very black and white,” Mr. Sussman said. “But these are real people that are vital to your organization.”

That teammate-first mindset, both said, is also the best defense against social inflation and attorney advertising. When injured workers trust their employer and know what to expect, they are less likely to seek outside representation, they said.