The Hidden Cost of Administrative Overload in Workers' Comp Claims

Administrative overhead is the silent budget killer in workers’ compensation claims. From redundant forms to endless follow-up calls, the cost of inefficient administration can quietly add 10-15% to total claim costs, according to the Workers Compensation Research Institute (WCRI). And while these costs may not be as visible as medical expenses or indemnity payments, they chip away at profitability just the same.

JAG Source is built to reduce this burden. Our coordination model:

• Eliminates unnecessary hand-offs — with a single point of contact managing each case.

• Delivers cleaner documentation faster, making file reviews and reporting easier.

• Provides proactive communication, cutting down the hours adjusters spend chasing updates.

• Integrates with your workflow, rather than forcing your team to adapt to another system.

  
  

The business case:

When admin costs fall, profitability rises. Faster, cleaner coordination also means:

• Shorter claim durations

• Fewer disputes

• Higher satisfaction scores for claimants and providers

Choosing a partner that understands the true cost of admin overload is a smart investment in your bottom line.

Reference: Workers Compensation Research Institute, Administrative Costs in Workers' Compensation (2021).