Midway Staffing, Inc. reduces total cost of risk

Midway Staffing, Inc. (Midway Staffing) provides businesses with professional, highly qualified employees for temporary, part-time, and full-time light industrial positions across the country. As a growing organization, Midway Staffing faced challenges with implementing an effective risk management program and establishing a compelling case for voluntary market carriers to provide workers’ compensation quotations. Midway Staffing also encountered opportunities navigating the complexities related to the Affordable Care Act (ACA), including the challengers of offering an affordable plan with usable benefits that is also easy to administer and ACA compliant.

To address these challenges, Marsh McLennan Agency (MMA) conducted two (2) safety 360 analyses. The initial analysis provided Midway Staffing with feedback on key risk improvement strategies they should prioritize and implement. The second review verified the progress made and identified additional, more granular, areas for further improvement. During the Midway Staffing transition from guaranteed cost to captive insurance, and eventually to self-insurance for their workers’ compensation program, MMA provided valuable guidance in restructuring the different TPAs to align more effectively with Midway Staffing’s philosophies. The MMA team collaborated with Midway Staffing’s Risk Management Department to develop strategies and advocate for optimal claim outcomes. As a result, MMA successfully persuaded claims adjusters and their respective TPAs to authorize external managed care bill reviews for specific cases.

Over the course of several months, MMA assisted the Midway Staffing team in adopting a fact-based approach to effectively communicate the benefits of default enrollment into a Minimum Essential Coverage (MEC) product, as well as the options available for more comprehensive employee benefit and health plans.

With these logical and successful strategies in place, Midway Staffing was able to make a significant impact on their operations and employee welfare. Notably, they were able to decrease workers’ compensation loss rates by 67.7% and decrease the experience modification factor by 50%. This led to a reduction in cumulative workers’ compensation premium by 29.4%. Furthermore, they made a substantial stride by enrolling more than 2,500 employees in an affordable group health & benefits plan.

Midway Staffing’s commitment to prioritizing the well-being of their employees resulted in a safer workplace environment, offered affordable usable benefits, achieved an increased level of compliance, and reduced internal administrative burdens. They became the beneficiary of a healthier and happier workforce, which in turn contributed to their impressive growth and reduction in total cost of risk.