Which of the following is NOT a common method for controlling medical costs of Workers' Compensation claims?

Prepare for the Oklahoma Insurance Adjuster's License Exam. Study with multiple choice questions, each with detailed explanations. Get exam-ready!

Overestimating the initial reserve for a claim is not a common method for controlling medical costs of Workers' Compensation claims. The purpose of reserving funds is to estimate the total costs associated with a claim as accurately as possible, based on the expected medical expenses, lost wages, and other related costs. By overestimating reserves, insurers can end up allocating more funds than necessary, which does not actively contribute to cost control.

In contrast, effective medical cost management strategies include implementing case management to coordinate care and manage treatment plans efficiently, negotiating provider rates to lower the costs of services, and promoting return-to-work programs that facilitate a quicker return of injured employees to the workplace, often resulting in lower overall costs for specialists and treatments during recovery. Each of these methods aims to ensure that claims are managed effectively while minimizing unnecessary expenses, thereby helping to control the overall costs associated with Workers' Compensation claims.

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