July 16, 2008
New York: Trust not in Trusts
We have been following the saga of the busted trusts in New York (here and here). Twelve workers comp trusts, all administered by Compensation Risk Management (CRM), have apparently failed. The workers comp board has decided to hit up the remaining trusts for the shortfall. These latter trusts are all solvent, and all are administered by someone other than CRM....July 8, 2008
Of Wage-Earning Capacity and Human Wreckage
Ronnie Ramroop was an employee of Flexo-Craft Printing in New York. In March of 1995 he caught his hand in a press, crushing four fingers. After seven surgeries, two fingers were amputated. It goes without saying that this is a work-related injury; workers compensation paid the medical bills, loss of function benefits (Ronnie lost 75% of the use of his...June 17, 2008
New York Trusts, Revisited: Comp Board Channels Willie Sutton
Yesterday we blogged the New York Workers Comp Board's unusual solution to a cash flow problem: when a dozen trust funds collapsed, the Board decided to hit up the remaining, solvent funds with an assessment: they raised assessments from the routine total of $500,000 to a staggering $12 million. The Board is using the logic of notorious bank robber Willie...June 16, 2008
Risky Risk Management in New York
Compensation Risk Management (CRM) is a third party administrator for eight workers comp trusts in New York. These trusts offer comp coverage to affinity groups in the areas of health care, wholesale/retail and transportation. As we read in the New York Times in an article by Steven Greenhouse, there is good news and bad news about CRM: the good news...June 9, 2008
There Goes the Judge
Back in November we blogged the saga of Judge Robert Restaino, a City Court judge in Niagra Falls NY. He apparently was having a terrible, horrible, no good, very bad day on March 11, 2005, when a cell phone went off in his courtroom, in violation of his judicial protocols. When no one fessed up to the crime, he jailed...June 4, 2008
Setting Limits in California
California had a long-standing reputation as a workers compensation nightmare: not because injured employees received generous benefits - they did not - but because doctors and lawyers exploited the system to generate enormous fees. Governor Schwarzenegger, AKA the Terminator, put an end to that with his extensive 2003-04 reforms. In the effort to contain costs, the reforms for the first...June 3, 2008
Firefighters revisited: Presumption's Slippery Slope
In yesterday's blog, my colleague Julie Ferguson discussed the issue of compensible illness for firefighters. Forty states already have statutes giving the benefit of the doubt to firefighters: if they become ill from many forms of cancer or heart disease, the illness is presumed to be work related. The burden of proof (and "burden" is surely the operative term) falls...May 21, 2008
The Rhode Island Solution
Rhode Island may be small, but when it comes to tackling the problem of undocumented workers, they think big. Last month, Governor Donald Carcieri issued an executive order encouraging law enforcement officials - from state police to local cops - to determine the immigration status of anyone taken into custody and take immediate steps to deport those who are here...April 8, 2008
New Jersey Comp: A Safety Net with Big Holes
New Jersey is known for many things, including these odd tidbits: three consecutive governors broke their legs while in office (Whitman, McGreevey, Corzine); no self-serve gas; no state song; the lowest rate of depression in the US. And an idiosyncratic workers comp system that has not been changed significantly since the 1970s. We will pass on whether they need a...April 7, 2008
Privatizing in Nassau County: A Good Idea, But...
Nassau County in New York is currently paying about $10 million a year for the partial disability claims of former county employees. They would like to settle these claims, but as with most municipalities, their budget process offers no opportunity for fronting the costs of settlement. It's cheaper to keep paying the claims from year to year, pushing the problem...February 6, 2008
West Virginia Transition: Changing Rules, Changing Lives
We have been following the cosmic shift in the administration of workers' comp in West Virginia, where a monopolistic state has morphed into a competitive market. The future looks rosy, but there is much pain in the transition. It's one thing to tighten up eligibility requirements and build a new "return-to-work" culture; the problem comes when the new culture clashes...February 5, 2008
Connecticut Privatization: Good Idea Gone Bad
Workers comp in the public sector is like an iceberg: what is visible from year to year does not really tell you how big the problem is. With the budget funding cycle running fiscal year to fiscal year, there is no incentive to close out open claims. It's actually cheaper - in the short run - to keep paying on...February 4, 2008
NY scaffolding: one miracle survivor saved by physics; others not so lucky
When cables broke on a scaffold on the 47th floor of a New York high-rise residential building on a crisp December day, it took only about 6 seconds for the two window washers who had been on the platform to plummet 500 feet to the ground. Edgar Moreno was killed instantly but, astonishingly, his brother Alcides Moreno survived the fall....January 29, 2008
Independent Contractors: New Hampshire Defines, FedEx Whines
New Hampshire has come up with their own 12 step program to determine whether contractors are truly independent or just employees. Meanwhile, the IRS has come down hard on FedEx, hitting the company with a $319 million fine for misclassifying drivers as independent contractors. Let's start in New Hampshire. The state has come up with 12 criteria for determining independence,...January 17, 2008
Heartburn in Tennessee
The Tennessee Restaurant Association (TRA), as you might expect, is a lobbying group for restaurants. One of the benefits of membership is access to special insurance programs. Around 500 members participated in a workers comp program run since its 1993 inception by the TRA's charismatic director, Ronnie Hart. Unfortunately, as we read in the Tennessean, Mr. Hart had no experience...January 15, 2008
Kentucky: Age and Benefits Collide
The Insider continually tracks the impact of an aging workforce. There's no lack of material! Here's an interesting case from the Bluegrass state, where the issues of working past retirement age and the calculation of disability benefits collide. Charles Lickteig was a deputy sheriff in Jefferson County, Kentucky. He was eligible for retirement age at 55, but chose to continue...January 8, 2008
New Hampshire Backpedals on Contractors
Back in December we blogged a legislative remedy that backfired in New Hampshire: House Bill 471 eliminated the exemption for corporate officers and directors from workers comp coverage. Given the state's extremely high costs for comp, this created an immediate outcry. We compared it to the weather on top of Mount Washington, which at the time was minus 13 degrees...December 17, 2007
Workers Comp in New Hampshire: A Cold Wind Blows
For those of you into weather, here is what's happening today on top of Mt. Washington in New Hampshire, home of some of the world's most extreme conditions: it's -13 degrees fahrenheit, with the wind blowing at 93 miles an hour. Wind chill a brisk -59 degrees. The wind has died down a bit - a few days ago it...December 10, 2007
Contract Workers as Employees in Texas
There are many permutations in the employer/independent contractor matrix. The Texas Supreme Court has ruled in Entergy v. Summers that the employees of a subcontractor - in this case, International Maintenance Corp (IMC) - can be considered employees of the general contractor. The United Steel Workers cry foul: without the remedy of tort liability, they argue, employers can get away...December 5, 2007
Age and Disability in California
We have frequently blogged the implications of an aging workforce. We are very interested in seeing how the workers comp system will handle older workers - people beyond the normal retirement age - when they are injured. Well, here is an interesting case from California. Lois Vaira was a receptionist for the California Travel and Tourism Commission. In January of...November 5, 2007
New York Border Wars?
We have been tracking the new insurance requirements in New York (blogs here and here). It is no longer sufficient for out of state comp policies to list New York under "other states" coverage (section 3C). If employees from out of state want to work in the Empire State, New York must be listed specifically under 3A of the policy....October 17, 2007
FedEx: California Quacking?
Three FedEx Ground employees brought a class action suit in California, contending that they are employees, not independent contractors, of the ubiquitous delivery company. They won at the initial trial, they won on two appeals and now they have won (for the most part) on the third appeal. The ruling lays out in compelling detail the employment law issues in...October 15, 2007
Wisconsin Volunteers: Look That Gift Horse in the Mouth
Back in February of 2005 we blogged the case of Margaret Morse, a member of the Legion of Mary, a volunteer group affiliated with Christ King church in Wisconsin. In the course of delivering a statue of the Virgin Mary to a parishioner, she ran a red light and crashed into a vehicle driven by Hjalmar Heikkinen, an 82 year...October 12, 2007
Pennsylvania: Blood on the Forms?
The good people governing the Commonwealth of Pennsylvania have a major concern. They want to make sure that each and every worker injured in the course of employment knows his/her rights and benefits under the comp statute. Most states accomplish this by requiring a posting by the employer, detailing the name and address of the insurance carrier. Employers usually include...October 2, 2007
Bobbing for Drumsticks? Ohio Supremes Reverse Themselves
Back in January we blogged an unusual case from Ohio. David Gross was a 16 year old working at a Kentucky Fried Chicken. Despite safety training and warnings to the contrary, he insisted on cleaning the fryer his own way, filling it with water boiled under pressure. When he opened the fryer, he burned himself and two co-workers who came...September 25, 2007
NY Reforms: Chaos Postponed?
The Property Casualty Insurers Association of America has issued a bulletin to its members, announcing the deferment of the onerous new comp coverage requirements in NY (see our recent blog here). At this point it appears that carriers do not have to specifically name New York on any policy where an employee from out of state might possibly do business...September 24, 2007
Compensable Suicide in MA
Gilbert Dube was a mechanic with a chronic back problem. He was working for National Fiber Technology LLC in Lawrence, MA, when he re-injured his back on November 7, 2001. He tried to return to work on a light-duty basis a couple of weeks later, but his employer informed him that there was no light duty available. (Red flag number...September 19, 2007
NY Reforms: Chaos for Carriers?
When you have a problem, you pass a law to fix it. That's the theory, anyway. Sometimes, the legislative solution creates big, new problems. Take New York - please! In trying to solve the very real issue of rampant under-insurance and premium avoidance in the construction industry, the state has crafted an innovative solution. But the solution creates very big...September 11, 2007
New York Update: CIRB Kicked to the Curb?
That reverberant thud we hear coming out of Albany, NY, is the sound of the other shoe landing. And it's dropped straight on top of the New York Compensation Insurance Rating Board (CIRB). In early March of this year, New York Governor Eliot Spitzer signed into law a major and much needed workers' compensation legislative reform. In February we had...August 13, 2007
Independent Contractors: Delaware Backs Down, New Jersey Ups the Ante
Workers comp coverage for independent contractors is the issue that just won't go away. A while back we blogged reform efforts in Delaware, which almost became the first state to require comp coverage for sole proprietors. Almost, but not quite. Delaware has a long-established (and well-deserved) reputation for being a comp disaster zone. That may no longer be the case,...June 28, 2007
Heat stress rules go into effect in Washington, California
For the second year in a row, Washington is implementing an emergency heat-stress rule designed to protect outdoor workers. It took effect on June 5 and will run through October. The rule requires employers to provide outdoor workers with a quart of drinking water per hour, to educate employees about risk factors for heat-related illness, and to have some area...June 18, 2007
Unexplained Injuries at Work
Donald Delaware worked for Sunland Beef Co. in Arizona. He was in charge of processing hides. In October of 2004 the 71 year old took a bathroom break. The last thing he remembers is standing in front of a urinal. Co-workers found him bleeding on the floor. He suffered a concussion and some loss of memory. He apparently passed out...May 10, 2007
Comp Fraud Follows a Different Drummer
Let's get down and funky. Valerie Scroggins is a drummer for ESG, a group she founded in the South Bronx with her sisters some 25 years ago. According to Wikipedia, ESG has been influential in a wide range of musical genres, including hip hop, post punk, disco, and dance-punk. Not exactly my taste in music, but who cares. Let's get...May 7, 2007
California Apportionment: Pennies for your Pain?
The plaintiff bar in California is very unhappy with the state's (long overdue) reforms of 2004. One blogger calls for the abolition of comp and a return to the pre-comp days when employees sued their employers for work-related injuries. I would call that a bit emotional, counselor. To be sure, there are real problems in determining permanency benefits, and some...April 6, 2007
New York Labor Law: No Such Thing as a Free Fall
When you talk to insurers doing business in New York, they are quick to point to New York Labor Law as a very big problem. The law, going back to 1885, holds employers absolutely and completely liable for any injuries resulting from a fall. This liability is over and above workers compensation. Injured workers can (and often do) sue for...April 3, 2007
Risk Management for Dummies
Restless modern minds have developed some new approaches to risk. These examples of thinking "out of the box" will eventually end up back in the box - as case studies in business schools across the country: "Risk Management For Dummies - and we really mean dummies!" NINJA Mortgages Let's begin at the micro level: the collapse of the sub-prime home...April 2, 2007
NY Second Injury Fund: the clock is ticking for recovery opportunities
Employers and insurers in NY take note: if you have claims with potential for second injury fund reimbursement, your window of opportunity for recouping recovery dollars has narrowed significantly. New York just passed legislation which includes provisions to phase out their fund. Also in the works, South Carolina legislators are discussing a schedule to close their fund as well, bringing...March 30, 2007
New Jersey Follow up: The Broad, Blind Brush of Justice
We recently blogged the racketeering conviction of 80 former factory workers in New Jersey. A Federal judge has fined the workers $2.26 million for the filing of fraudulant comp claims. Now the state is examining the ramifications of the judgment, which exposes an enormous fault line between state and federal law. Here's the problem. The racketeering conviction paints all the...March 21, 2007
Employees as Racketeers
When a plant closes, the bond between employer and employee is broken. We often find that long-term employees, stung by the loss of jobs, file workers comp claims. Given the cumulative trauma of industrial work, the claims are often supported by objective medical evidence. With no opportunity to accommodate injuries through modified duty, the employer is stuck with the bills,...March 20, 2007
The Sole Proprietor Conundrum: Compulsary or Optional Comp?
Delaware has finally fixed its comp statute, lowering rates by limiting attorney fees and by establishing a medical fee schedule. They've also implemented a pay without prejudice period, under which carriers must begin paying benefits promptly, while reserving the right to stop payments at a later date if compensability comes into question. That's all well and good. The Delaware reforms...March 12, 2007
Workers' compensation reform in a New York minute
Well, that didn't take long. Only 19 days ago we wrote about the profound need for top to bottom reform of New York's worker' compensation statute, arguing that the election of Governor Eliot Spitzer provided the best opportunity in more than a decade to accomplish meaningful reform in the state that needed it the most. Lo and behold, if a...March 5, 2007
Massachusetts: Once more into the rate filing breach
In what continues to be perhaps the nation's biggest workers' compensation turnaround success story, the Massachusetts Workers' Compensation Rating and Inspection Bureau (WCRIB) on Friday filed a proposed average rate decrease of 13.4% to become effective 1 September 2007. If the state's newly appointed insurance Commissioner, former Superior Court Justice Nonnie Burns, approves the filing, rates in Massachusetts would be...February 27, 2007
Missouri's Pre-emptive Strike on Older Workers
Missouri has been living with its tough new workers comp law for about 18 months. As with all reforms, someone had to pay the price. I think it's safe to say that the burden of comp reform has fallen disproportionately on workers - and the worst is yet to come. Much of the reform impacts all workers, regardless of age:...February 26, 2007
FedEx Wins One in CT
With 15,000 "independent contractor" drivers across America, FedEx is in the midst of a huge experiment in human resources. The fundamental question, of course, is whether their decision to contract out a significant portion of their basic operations is legal. A number of states (Including California, New Jersey, Montana and Massachusetts) have ruled that the drivers are actually employees, entitled...February 21, 2007
The Insider’s Prescription for New York
For sweetest things turn sourest by their deeds; Lilies that fester smell far worse than weeds. ~ William Shakespeare ~ Sonnet 94 Here at Workers Comp Insider and Lynch Ryan one of the things we find most interesting is the way in which different states approach our bread and butter issue. Counting the District of Columbia, there are 51 US...February 20, 2007
State news notes: WY, TN, OR, NY, OH
Wyoming - In an extraordinary case, Les Butts, a coal miner with permanent spinal cord injuries, was recently awarded $9.46 million for the injuries he sustained while working on the job, and two of his managers - not his employer - are being held responsible for failing to provide a safe environment. While workers compensation is generally the exclusive remedy...February 13, 2007
West Virginia's Brickstreet: The Yellow Brick Road to a Competitive Market
I just returned from two days working with independent agents in West Virginia. They are boning up on NCCI's complex experience rating model, in preparation for a radically transformed marketplace. Long a monopolistic state, West Virginia is half way toward becoming a competitive market. Under the transition, Brickstreet Insurance, a creation of the legislature (and spin off of the monopolistic...January 31, 2007
Working Beyond the Grave: Dependent Benefits in Missouri
There are many ambiguities in the world of workers comp. (Without them, there might not be a need for this blog.) So today we find ourselves in Missouri, the "show me" state, where the state's supreme court shows us how a dead man can be available for work. The case involves Fred Schoemehl, a 62 year old man who suffered...January 25, 2007
Comp in New York: Death Spiral Finally at an End?
Workers comp seems to embody the worst of all possible worlds in New York state: the benefits are way too low; the premiums are way too high. The system is full of friction, with virtually every claim decision requiring the involvement of a judge. The system, forged in the cauldron of early 20th century labor-management conflicts, is in deep trouble....December 18, 2006
California: There’s Gold In Them Thar Hills!
It was George Santayana, the Spanish born American philosopher, poet and humorist, who wrote, “Those who do not remember the past are condemned to repeat it.” With that in mind, I’d like to suggest how the history of California’s pioneers and prospectors is an allegory of its workers’ compensation ups and downs over the last 20 years. From 1840 to...November 6, 2006
Workers comp costs and benefits - Current state rankings
Here’s a question for you: If you were to ask any employer in America how his or her workers’ compensation costs compare to similar employers in other states, what do you think the answer would be? Well, I’ve been doing that with employers I meet for a long time, and I have yet to meet one who thinks his or...November 3, 2006
Gun Boats on the Kennebec? Comp Medical Costs Sinking Bath Iron Works
Bath Iron Works (BIW) builds ships. The first was The Cottage City, a passenger steamer completed in 1890. Over the past two decades, their work has been limited to building destroyers for the US Navy. We read in the Kennebec Journal that the builder of destroyers is being clobbered by the high cost of medical care for injured workers. There's...September 12, 2006
Workers Comp Reform: Who Pays?
When it comes to workers comp reform, it's always a good idea to follow the money. Too often, reforms focus on dollars saved, as opposed to measuring the quality of services provided. Too often, reform comes at someone's expense: often conscientious medical providers, and almost always, injured workers. Here are a couple of recent examples: Ohio: Managing Care or Managing...August 23, 2006
Illegal Immigrants in Arizona: Comp Coverage Hinges on a Comma
Back in 1925, legislators in Arizona wrote the first workers compensation statute for that state. It's safe to say they had no idea that the absence of a single comma would send lawyers scrambling for clarification some 80 years later. The story involves workers comp coverage for illegal immigrants. "Mario Lopez" hurt his back moving furniture in 2001. He filed...June 7, 2006
Refreshing and Progressive Proposals from New York Agents
New York's workers' compensation system is expensive, adversarial, administratively cumbersome and, in many ways, harmful to the very people it is supposed to serve, employers and injured employees. Now, the Professional Insurance Agents of New York State (PIANY) have authored an insightful, forward-thinking and very intelligent Legislative Position paper that addresses the state's serious workers' compensation problems. It should be...April 17, 2006
Hawaii Comp Needs Tweaking. We're Ready to Help!
The Insurance Journal has published a summary of benchmarking research on the state of Hawaii from the Workers Compensation Research Institute (WCRI). The Cambridge MA think tank found many things to like in the Hawaii system, and a few areas of concern. We'd like to link you to the full report, but WCRI reports are generally not available to the...April 3, 2006
Know Noe? No No!
Although the country is in the middle of an emotional and compelling debate on immigration, the Insider returns to the amazing and appalling case of Tom Noe, the ubiquitous Ohio coin dealer whose name has disappeared from the address books of powerful people near the Great Lakes and the Potomac River. Toledo Blade reporters James Drew and Steve Eder have...February 22, 2006
The $263 million question: Can Montana cap benefits at 65?
Montana courts are examining the issue of whether the state can terminate workers compensation benefits to workers at age 65, and if the court finds in favor of the plaintiff, the Montana State Found could be forced to retroactively pay benefits to those over 65. Grocery store worker Catherine Satterlee (PDF) has challenged the constitutionality of Montana's law on the...February 14, 2006
Just Say Noe: The Fall of a Wheeler-Dealer in Ohio
We have been tracking the developments in "Coingate" - the Ohio workers comp scandal that has sent shock waves through that state's formidable Republican establishment. Millionaire coin dealer Thomas Noe was recently indicted for his central role in the affair. He is charged with 53 felony counts, including 11 theft, 11 money laundering, 22 forgery and 1 pattern of corruption....January 9, 2006
Sago mining disaster and workers comp: newly formed insurer to pay benefits
For many years, West Virginia was one of a handful of monopolistic states in which all workers compensation was handled by a state compensation fund. After years of punishing losses, the state legislature moved to privatize the fund. The first phase of this privatization began on January 1 when the state compensation fund passed the baton to BrickStreet Mutual Insurance...December 27, 2005
South Carolina Reforms: The Pendulum Swings
In the early 1990s, when most states were sweating out urgent reforms in their workers compensation systems, South Carolina basked in the warm southern sun. They were ranked #2 for low costs at that time and their good fortune continued up to the year 2000. Now the state is struggling with increasing costs. Rates went up by 17.3% in 2003...December 7, 2005
Texas Workers Compensation Reform
After our recent post on Missouri, one of our regular readers asked for a summary of reform provisions in the Texas law enacted in June. Here's what we came up with - we invite Texas readers to add any comments and clarifications - we'd welcome the input! TWCC was eliminated; workers compensation is now managed by the TX Department of...December 1, 2005
Labor groups challenge Missouri's new workers compensation law
This past July, Missouri's Governor Blunt signed legislation overhauling the state's workers compensation statute, swinging the pendulum much more heavily in favor of the employer. (In a prior post, my colleague Jon Coppelman commented on some of these changes while they were still under review.) Yesterday, more than 70 labor groups filed suit to challenge the constitutionality of the new...November 28, 2005
News briefs: MA mandatory insurance, Peter Drucker, OR work blog, work safety
Health insurance: mandatory in Massachusetts? "Under two major proposals that aim to cover the estimated half million uninsured in Massachusetts, the state would require all residents who can afford it to purchase some type of individual plan or face penalties, such as losing their driver's licenses. Massachusetts joins a growing number of states grappling with how to expand coverage at...November 18, 2005
Fixing Comp In New York
Workers comp reform is on the table again in New York. The governor's press release outlines a comprehensive package of changes that is supposed to reduce overall costs by 25 per cent, even as certain benefits are increased. New York is currently in big trouble, ranked among the four most expensive states, so reform is certainly in order. But is...November 17, 2005
Tennessee Backpedals on Independent Contractors
States continue to struggle with the dilemma of independent contractors. How can you ensure that small artisan contractors in construction have adequate workers comp coverage? How can you prevent abuses, such as employers calling their own employees "independent" to avoid paying comp premiums? And who pays for independent contractors when they get hurt? Tennessee had a solution called form I-18,...November 4, 2005
Compensable Fighting in Virginia
When an employee starts a fight, any potential workers comp claims based upon injuries to the instigator are denied. The denial stems from the employee's "wilful intent." If you knowingly and wilfully injure yourself (by starting a fight), the comp system rejects the claim. The person who is attacked, however, may collect comp for injuries, unless the fight has absolutely...November 3, 2005
News roundup: Guns, depression, CA doctors, translation services, and more
Kudos - Congratulations to friend and colleague Joe Paduda on the one-year anniversary of his excellent blog, Managed Care Matters. If this blog isn�t on your regular reading list yet, it should be! Guns at Work - Thanks to Michael Fitzgibbon for pointing us to a post at Workplace Prof Blog about guns at work: "Oklahoma and Kentucky have enacted...October 19, 2005
California court upholds workers comp for undocumented workers
On Monday, California's 2nd District Court of Appeal upheld the rights of undocumented workers who are injured at work to receive workers compensation benefits in its ruling in Farmers Brothers Coffee vs. Workers' Compensation Appeals Board. A three-judge panel ruled unanimously, stating, "California law has expressly declared immigration status irrelevant to the issue of liability to pay compensation to an...September 30, 2005
Wyoming court to examine compensability for illegal immigrants
Wyoming's Supreme Court* will be considering the issue of whether an illegal immigrant who is injured on the job should be entitled to workers comp benefits. In the particular case at hand, one Javier Molina lost a leg after being run over by a piece of construction equipment while at work for Freund Construction. He was denied compensability and turned...September 21, 2005
Ohio's Coingate continues to take a toll
It's the scandal that keeps on giving. The Ohio Bureau of Workers Compensation's (BWC) dubious investment strategy exacted its latest toll with the recent firing of the chief investment officer. Go figure! Who'd have thunk a little speculation in failed hedge funds and rare coins could cause such a ruckus? Coingate has already claimed the BWC director's job; it's also...September 9, 2005
State news roundup: Problems in KY, OH, CT
KY: "Joint and several" liability at work A Circuit Court judge has ruled that members of the failed AIK Comp self-insurance group must pay millions in assessments to cover benefits for injured employees. We wrote about this matter in December, discussing the concept of joint and several liability and the so-called 'long tail' of workers comp claims. At that time...August 26, 2005
NH doc under scrutiny for trying to save woman's life
Earlier this week, the Trust for American's Health issued a new report on obesity in Anmerica with the disturbing news that about 25% of American adults are obese. Health Daily News Central has more information on the details of this report. We've also previously blogged about obesity and workers comp. About the same time this report was released, the news...July 19, 2005
New York Update: A Tweak in the Rates
We've been monitoring the rate setting drama in New York, one of the big four in overall costs of workers compensation (along with California, Texas and Florida). New York rates dropped dramatically in the mid 1990s and then held pretty steady for the remainder of the decade. As in many states, the rates have sharply declined from those of the...June 28, 2005
Texas enacts safe lifting guidelines for a hazardous industry
Quick - name the three leading industries with the overall greatest numbers of injuries and illnesses. I've run this little pop quiz on people who work in the industry and those who don't, and it's rare that people get the right answers. According to Bureau of Labor Statistics, the dubious *winners* in the win, place, and show categories are laborers...June 16, 2005
Ohio BWC scandal widens
Folks at the Ohio Bureau of Workers Comp (BWC) desperately need to remember the first rule of holes: when you are in one, stop digging. Today, reports are that the BWC is considering $80 million in givebacks to employers in the form of an 8 percent dividend in a misguided attempt to demonstrate solvency. Last month, the BWC voted to...May 27, 2005
First Head Rolls in Ohio Coin Caper
Ok, that headline is not exactly our style, but the shenanigans at the Ohio Bureau of Workers Compensation seem to call for it. In our May 13 blog, we first mentioned the truly bizarre story unfolding in Ohio. The workers compensation bureau has invested $50 million in rare coins, working through Tom Noe, a man prominent in Republican fund raising...May 25, 2005
S. Carolina to bar workers comp for undocumented immigrants?
Apparently, at least a few legislators in South Carolina think that illegal immigrants should be barred from receiving workers comp benefits, and there is a bill to that effect under consideration in the statehouse: "Thousands of undocumented workers in the Palmetto State could be denied workers' compensation coverage, including lost wages and medical bills stemming from work-related injuries, under a...May 13, 2005
Ohio's Great Workers Comp Coin Caper?
I used to think I worked in a fairly pedestrian little industry. At cocktail parties, the words "insurance" and "workers comp" were always good for a few yawns and glazed eyes. There wasn't much in the way of excitement - a little premium fraud here, a little claimant fraud there, and an occasional doctor mill busted...nothing too eye opening. But...March 16, 2005
Fixing Workers Comp
A news round up reveals a number of states trying to fix problems in workers compensation. Not surprisingly, two of the highest cost states are trying to take action: Texas and Alaska. In any reform effort, the fault lines in the comp system are exposed. Reform always entails an attempt to control costs. When you control costs, some one loses:...February 15, 2005
News roundup: Spitzer probe, NY Security Fund, FL exclusive remedy ruling, & more
Spitzer probe expands to managed care firms The New York Attorney General's office is expanding its inquiries to encompass managed care practices. At Managed Care Matters, Joe Paduda reports that Concentra has received a subpoena. In his post, Joe discusses some industry practices that might be under scrutiny, although he rightfully notes that this is not to infer that Concentra...January 17, 2005
Free safety educational materials
Some state workers compensation authorities have very robust educational materials and information on their websites, and from time to time, we will point to tools or resources that we find. Several states have state funds - that is, the state provides insurance to employers, either exclusively or on a competitive basis. One might expect a certain level of depth to...January 10, 2005
State WC news: RI, HI, CA
Rhode Island: For the first time since 1998, RI workers comp rates will be reduced by 20.2 percent, slightly more than the NCCI recommendation of 18.3 percent, but less than the attorney general's call for a 27.5 percent reduction. Hawaii: The state Department of Labor and Industrial Relations is proposing regulatory changes for HI workers' comp and hopes to bypass...January 3, 2005
West Virginia revokes 400 business licenses for defaulted workers compensation premiums
The West Virginia Department of Tax and Revenue, in conjunction with the Workers Compensation Commission (WCC), has revoked the business licenses of 400 employers that owe $2.4 million in workers' comp premiums, interest, and penalties. West Virginia is one of 6 states with an exclusive state fund - in other words, WCC is the sole provider of workers compensation coverage...November 3, 2004
Workers compensation state News Roundup OR, AZ, MO
Oregon: Attempt to dismantle SAIF defeated Voters cast a resounding no vote on Measure 38, a proposal to dismantle SAIF Corp. The high-profile campaign to abolish SAIF Corp., the state-owned worker's compensation insurer, was failing by a wide margin in early election returns. Liberty Northwest, the private insurer that bankrolled the campaign, conceded that Measure 38 was doomed in a...October 27, 2004
West Virginia is cracking down on deadbeat employers
West Virginia has a message for employers that have defaulted on workers comp obligations in one company, and moved on to another: You can run, but you can't hide. The state has an aggressive plan to collect from deadbeat employers who owe the state millions of dollars in unpaid workers compensation claims. We found this story interesting after just having...October 12, 2004
Workers compensation state news: CA, IA, IL, NV, OR
Is the California Workers comp overhaul providing relief? Some don't think so. Injured workers still face lengthy delays in getting treatment and resolving insurance claims. The main reason is that the new legislation took effect before critical rules and guidelines could be developed to accompany it, according to The Sacramento Bee. Officials say the new rules will not be ready...September 20, 2004
State workers compensation news briefs: OK, GA, PA, CA
Oklahoma Governor Henry urges regulators to block workers compensation increase "The National Council on Compensation Insurance is seeking an increase in its ``loss cost'' rates, the direct cost of settling workers' compensation claims like medical bills and salary reimbursements. The costs are about 70 percent of what a covered company pays. But an actuarial report prepared for Attorney General Drew...September 16, 2004
Drastic workers compensation changes called for in Texas
In response to what has been called a developing crisis by Texas Governor Dewhurst, the Sunset Advisory Commission, a body charged with reviewing state agency performance, has just issued recommendations that include abolishing the Texas Workers' Compensation Commission (TWCC) and migrating many of the TWCC responsibilities to a newly created Office of Employee Assistance in the state's Department of Insurance....August 27, 2004
S&P Warns that California's workers comp woes are not over
A recent report by Standard & Poor's Ratings Services indicates that California's workers comp problems may be far from over, and that downward pricing pressures threaten to throw the market in another tailspin. The report does not mince words, stating that insurance commissioner Garamendi is inviting "the same irresponsible behavior that caused the last crisis." From the Insurance Journal story:...August 10, 2004
Texas cracks down on late benefits
If you are an insurer in Texas, take note. The Texas Workers Compensation Commission is cracking down on late benefit payments to injured employees. In a new enforcement push, TWCC is using electronic data to track payments, and in addition to getting tough on late payments, its also imposing penalties for faulty or inaccurate reporting data. The commission states in...Minnesota Issues Workers Compensation System Report
Minnesota's Department of Labor and Industry just issued a Workers' Compensation System Report that covers data and trends in the state's system from 2000 through 2002. The good news? Claims fell by more than 15% during that time. The bad news? " ... cost per $100 of payroll rose 18 percent during the same two-year period. The report estimates the...July 16, 2004
Ohio getting tough on premium compliance
Employers in Ohio would do well to ensure that they keep their workers' compensation premium payments up to date. The Ohio Bureau of Workers Compensation (BWC) recently issued a press release naming employers who have lapsed premium payments. Ohio is one of five states where a state fund is the exclusive provider of workers insurance. The other states are North...July 14, 2004
California's woes continue
Things remain interesting in California. Shortly after the legislature passed Gov. Arnold Schwarzenegger's sweeping reforms, Insurance Commissioner John Garamendi, announced that his office had calculated that those reforms, when combined with other, more minor reforms passed into law at the tail end of 2003, would translate to a reduction in total premiums statewide of nearly 21%. Well, here we are...July 7, 2004
Research: outcomes for injured workers
This year's NCCI Issues Report contains a report by Richard Victor of the Workers Compensation Research Institute (WCRI) of Cambridge, MA on WCRI's ongoing study of injured worker outcomes in California, Massachusetts, Pennsylvania, and Texas. The objective of the research is to measure key outcomes that are frequently at the heart of public policy decision making: recovery of healthsuccessful return...June 17, 2004
The California workers comp experience as a cautionary tale
We've just posted an article that Tom Lynch authored for the Winter 2004 edition of The Journal of Workers Compensation entitled Good Grief! Does Our Future Lie in California? Although the article was published just prior to the ouster of Grey Davis and the subsequent adoption of a workers comp reform plan, the overall examination of why some states work...March 17, 2004
State resources - Ohio, Utah, Pennsylvania
Ohio - KivaCom is a useful site that aggregates workers' comp news extracts on such topics as health and safety issues, ADA, HIPAA, labor news, and legal news. The site also provide Ohio legal case summaries. While geared to workers' comp practioners in Ohio, the news abstracts cover national topics and are culled from a wide-ranging list of sources -...January 25, 2004
State workers' compensation laws & benefit tables
If you have multi-state exposure, keeping up on the various laws can be a challenge. Here are two handy tools: The Department of Labor's State Workers' Compensation Laws & List of Benefit Tables offers 20 separate tables available in either html (web) or pdf (adobe) formats. The workers compensation insurance law tool at insure.com offers four search tools: a search...January 8, 2004
And The Beat Goes On
The workers' compensation goings on in California are proving that Gov. Arnold Schwarzenegger can flex his muscles in the legislature just as well as on the big screen. He wants "real reform" on his desk by March 1 --- or else. "Modest reform is not enough," the Republican governor said during his State of the State Address earlier this week....December 11, 2003
Workers' Comp and the Station Nightclub
This is a cautionary tale for America's small employers. One hundred people died in the Station Nightclub fire, one of the worst tragedies in American history. Yesterday, the brothers, Jeffrey A. Derderian and Michael A. Derderian, who owned the Station Nightclub in West Warwick, Rhode Island, and Daniel M. Biechele, the tour manager for the band, Great White, were each...December 3, 2003
California Keeps Digging
Question: What is the first rule of "holes?" Answer: When you're in one, stop digging. Members of the public who have been following this column know that we, here at LynchRyan, have been absolutely fascinated with the workers' compensation goings on in California, the state that, if it were a country, would have the world's fifth leading gross national product....November 24, 2003
Califoria news updates
Now it's Schwarzenegger's turn to enter workers comp fight "Every recent governor has declared his steadfast intention to reform workers' comp, lowering costs to employers and bringing more equity to disabled workers. None has succeeded; indeed, most of the legislation purporting to improve the situation has actually made it worse, most infamously an overhaul in the early 1990s that eventually...November 13, 2003
Nevada leads the way
An interesting thing happened in Nevada today. And it may eventually affect employers around the rest of the country, especially in Massachusetts. Workers' compensation is amazing. It's very stable in that every employee in the nation is covered by one form of it or another (except some of those in Texas; but we'll write about that at another time). But...October 30, 2003
State news briefs
Workers Compensation Fund Sues State of Utah "This dispute has been long standing. WCF believes that the assets of the company are owned by its policyholders - that it is a mutual insurance company. WCF began in 1917 with $40,000 in seed capital from the State...This action is even more necessary now with last week's announcement that WCF intends to...October 28, 2003
Pennsylvania WC resources
Some useful PA resources - the Bureau of Workers' Compensation Quick links page and the PA Employer's Guide to Workers' Compenstion. Both of these pointers came from PA Judge Robert Vonada who has a workers compensation weblog worth checking out. While he covers WC in general, his main focus is recent PA court decisons related to WC....October 10, 2003
MA Assigned Risk Premium Calculator
The Workers Compensation Rating and Inspection Bureau of Massachusetts has introduced an Assigned Risk Premium Calculation application. It's a tool to help producers and employers calculate workers' comp assigned risk premium to submit with their insurance application....October 6, 2003
Fraud or lack of worksite controls?
Minnesota is getting tough on fraud. They estimate that about 10% of all claims are fraudulent. If fraud is that high in the state, it's a clear sign that employers aren't making the most of basic worksite controls - communicating and establishing expectations with employees, managing injuries immediately, bringing employees back on RTW. Generally, in our experience, when fraud is...October 3, 2003
