JPMorgan has announced that it is the first major financial institution to enable insurance companies to use prepaid debit cards to deliver workers compensation benefits to injured or disabled workers.
The Chase Workers Compensation Card, issued by JPMorgan, provides insurance companies with an alternative method for paying injured workers and improves the benefits payment process by reducing the costs and time associated with paper-based check distribution. Cardholders benefit from efficient, economical and reliable access to insurance payments without having to wait for a check to arrive in the mail.
“Prepaid debit cards are an effective solution for bringing cost-cutting process improvements to any insurance companys financial operations, especially in an environment where challenges include the long-tailed nature of claims and the continued rise of medical costs,” says Eduardo Vergara, global commercial card executive, JPMorgan. “The Chase Workers Compensation Card program not only delivers an automated, easy to manage electronic payments system that eliminates more expensive paper-based systems, but provides insurance companies with a custom-branded card designed to increase customer loyalty.”
The Chase Workers Compensation Card also helps insurance companies improve the management of funds distribution as a result of increased reporting capabilities. Program administrators use an online managing and reporting tool to quickly enroll cardholders, ensure that cards have been shipped to new cardholders in a timely manner, electronically deposit funds into card accounts, track payments to ensure that cardholders are being paid on time, and produce nearly twenty types of reports. New cardholders also can be enrolled via batch file processing.
Central Mutual Insurance Company of Van Wert, Ohio is now offering the Chase Workers Compensation Card to claimants who receive repetitive payments. “Having the ability to provide an additional payment option to our claimants provides us with a competitive market advantage and enables us to streamline our claims paying process,” says Thad Eikenbary, assistant vice president-treasurer, Central Mutual Insurance Company.
From a cardholder perspective, the Chase Workers Compensation Card enables injured workers to access their funds at automated teller machines (ATMs), receive cash back at retail locations, pay bills online, and make purchases at the millions of locations that accept Visa debit cards, such as pharmacies and medical facilities. Cardholders also avoid paying costly check-cashing fees. Account balances can be accessed daily via a toll-free number or online.
According to the Insurance Information Institute, Americans collected $42 million in workers compensation payments in 2006.
About nine out of 10 people in the nations workforce are protected by workers compensation insurance.
Workers compensation is a form of insurance that provides compensation for employees who are injured in the course of employment. Compensation can be made for weekly payments in place of wages, reimbursement or payment of medical and like expenses, and benefits payable to the dependents of workers killed during employment.