What is the Cost Allocation Program?
The Cost Allocation Program was implemented effective July 1, 2011.
The Cost Allocation Program takes a two-pronged approach. The first prong will apply a rate per $100 of payroll uniformly to all fund sources. This uniform rate will be reevaluated on an annual basis and adjusted, if required.
The second prong will assess an Incident /Claim Fee of $5,000 per qualifying incident/claim.
Goals and Objectives
The goal of Cost Allocation is to allow departments to be financially responsible for operational risk decisions that result in workers’ compensation claims or add to a claim's cost.
The objectives of Cost Allocation are:
- Distribute costs fairly based on loss experience
- Focus greater attention to loss prevention and risk reduction
- Participate in Safety initiatives, Disability Management, Ergonomics, and Wellness programs
UCR Workers’ Compensation Cost Allocation
- Qualifying incident/claim: All incidents except “First Aid Unpaid” are determined as qualifying incidents/claims.
- First Aid Unpaid incidents are incidents that do not incur any costs (e.g. injured employee does not require medical treatment) – these types of incidents will not be assessed an Incident/Claim Fee.
- An Incident/Claim Fee will be charged directly to the funding source on which the injured employee was paid at the time of the incident.
Incentives for Reduction of Incident/Claim Fee
Departments are responsible for developing an injury reporting procedure within their own areas. This should include training employees and management to report an incident within 48 hours from Date of Incident, provide after-hours reporting procedures, utilize University-assigned medical treatment facilities, and follow campus workers’ compensation policy and procedures.
The Incident/Claim Fee can be reduced as follows:
- 10% of $5,000 — The submission of timely Incident Report Forms to the Workers’ Compensation Office.
The Incident Report Form can be downloaded from the Workers’ Compensation website.
- 10% of $5,000 — Utilization of a University-assigned medical provider for occupational injuries.
University-assigned medical providers for occupational injuries are listed on the Workers’ Compensation website.
- 10% of $5,000 — Department provision of a Transitional Return to Work assignment in the home department when an injured employee is released with temporary work restrictions and/or the injury incurred no lost time beyond the three-day waiting period. Please go to the Human Resources Disability Management website for guidelines on Transitional Return to Work.