· Reduce moral hazard
· “Self-insuring” as a financial incentive for promoting safety
· Reduce administrative costs
· Reduce benefit costs
· Cost sharing between injured workers and employers
Waiting period costs may not be easy to calculate but every state and province that has a waiting period and a retroactive period has the data to quantify the number of cases that serve a waiting period, report the uncompensated work-absence days and estimate the financial cost workers bear for losses during the waiting period. Quantifying the waiting period “deductible” will go a long way to creating a more complete picture of workers’ compensation costs, coverage and benefits.