Work Comp News 2007
Fresno Fireball Victim Gets $27 Million
A federal jury in Fresno awards more than $27 million to a man who was engulfed by a fireball in an industrial accident and suffered burns over nearly two-thirds of his body while working at a Mendota biomass power
plant. Because the jury apportioned 5-percent of fault in the accident to the worker and 20-percent to the plant, the employer will get partial credit for workers' comp benefits. By John Ellis, Fresno Bee
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Raided Central Valley Restaurant Owners Can't Duck Fraud Suit
A fraud lawsuit seeking at least $1.25 million in damages is filed in federal court against the owners of Mallard's restaurants in Stockton and Modesto. The owners recently were fined the maximum $100,000 by the DIR
for allegedly failing to carry workers' compensation insurance; they have until Wednesday to pay. By Joe Goldeen, Stockton Record [With Photo]
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Show Me State's High Court to Consider Workers' Comp Reform
The Missouri Supreme Court considers a challenge to Missouri's 2005 workers' compensation reform, which generally made it more difficult for employees to prove that injuries are work-related. Labor unions say the
changes, which were championed by Gov. Matt Blunt in an effort to help the state's economy, excluded large groups of previously-covered individuals. By David A. Lieb, Belleville (Ill.) News-Democrat
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Scottish Shipyard Workers Buoyed by Asbestos Legislation
Former Scottish shipyard workers afflicted by pleural plaques, a crippling lung disease that can lead to mesothelioma, may claim workers' compensation under new legislation. The House of Lords recently sparked outrage
when it rejected workers' comp claims in favor of insurance giant Norwich Union, overturning a 30-year precedent. Greenock Telegraph (U.K.)
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North Dakota Preparing RFP for Workers' Comp Agency Consultant
An advertisement for a consultant to review management and claims handling problems at North Dakota's troubled Workforce Safety and Insurance agency should be finished within several days, as the state Office of
Management and Budget begins to prepare a request for proposals. By Dale Wetzel, AP via Dickinson Press
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W.V. Insurance Officials Hire New Manager for Old Claims
West Virginia's Office of the Insurance Commissioner says it has selected a new third party, Sedgwick Claims Services, to handle all old workers' comp claims. But some workers are wary that they'll slip through the
cracks in the switch. By J. Turchetta, WBOY-TV (Clarksburg, W.V.)
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Delaware Towns: 'We're Going to Control Our Own Destiny'
The First State has struggled for years with rising rates workers' compensation rates, with various studies ranking the state among the five or 10 most expensive states for coverage. Whether municipalities in Delaware
will be able to significantly trim costs by pooling together, however, remains at issue. By Leslie A. Pappas, Wilmington News-Journal
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Backlog Mires Quarter-Million South Africa Metalworkers: Union
More than 250,000 South African workers, most of whom are metalworkers, are awaiting compensation as the backlog at the labor department continues to mount, according to a union. These problems are attributed to
"unsound computer systems, staff attitude to their work and the lack of monitoring processes." Independent Online (South Africa)
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Iraq Contractors Face New Battle in Collecting Disability
For some injured employees of private contractors commissioned by the U.S. government to provide services including driving, building, and security in Iraq, seeking disability compensation through their insurers is a
battle they did not anticipate. Claims filed under the federal Defense Base Act with the Office of Worker's Compensation Program have skyrocketed since 2003. By Mrinalini Reddy, Medill Reports (Northwestern Univ.)
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'For What?" Asks Pennsylvania Builder After More Charges
A Lackawanna County, Pa., homebuilder who already faces charges of writing bad checks is arrested again for allegedly failing to provide workers' comp coverage. By Josh Brogadir, WNEP-TV (Moosic, Pa.) [With
Photo]
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Crescent City Officer Cops to Post-Katrina Workers' Comp Fraud
A former New Orleans police officer admits to defrauding the city of more than $8,000 in workers' compensation claims after Hurricane Katrina. The city classified him as having a temporary, total disability, but he
became a self-employed contractor repairing hurricane-damaged homes. New Orleans Times-Picayune
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Committee Recommends Group Discount Cut
Following weeks of uncertainty, the Ohio Bureau of Workers' Compensation announced that its actuarial committee will recommend a 3 percentage-point reduction in the group discount for next year.
Go to the full story in the Dayton Business Journal
Go to the full story by Dan Provance, Toledo Blade
Oklahoma Labor Commissioner Says Jockeys Need Workers' Comp
Oklahoma State Labor Commissioner Lloyd Fields tells the Oklahoma Horse Racing Commission that the state's four racetracks need to ensure there is adequate workers' compensation coverage for people hired by horse
trainers. Fields says the state Labor Department is investigating claims that some horse trainers do not offer workers' comp insurance for their employees. By AP via KSWO-TV
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North Dakota A.G. Investigates Possible Open Meetings Violation
The North Dakota attorney general's office is looking into whether the Workforce Safety and Insurance board violated state open meetings laws. An attorney contends the WSI board might have used a closed meeting to
talk about retaliation against employees who have asked for whistleblower protection for exposing possible illegal activity. By AP via KXMC-TV (Minot)
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N.D. County Suspected WSI Spokesman Concealed Documents
Investigators seized a journal kept by a North Dakota workers' compensation official because they suspected him of tampering with public records as the state explored allegations of wrongdoing by agency officials.
By Patrick Springer, Fargo Forum
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'In Defense of the Workers' Comp Process'
Insurance executives recently faced tough questions from a skeptical audience at the National Workers' Compensation and Disability Conference in Chicago, leading to a back-and-forth discussion on how to add a human
touch to tech-driven workers' comp processes. By Dan Reynolds, Risk and Insurance
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N.C. to See Lowest Rate Boost in Four Years
After a compromise between the North Carolina Rate Bureau and state insurance officials, workers' comp rates for North Carolina employers will rise an average 1.6 percent in 2008, the lowest increase since 2004. The
bureau originally had sought a 5.9 increase. By David Ranii, Raleigh News & Observer
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Buckeye State Ruling Preserves No-Fault Coverage
A recent Ohio Supreme Court ruling in favor of a former fast food worker who was burned in a fryer accident was crucial for Ohio workers because it preserved the "no-fault" coverage of Ohio's workers' comp system,
according to the worker's attorneys. The franchise fired him three weeks after the 2003 accident because they say he had ignored repeated safety warnings. By Jim DeBrosse, Dayton Daily News [With Audio]
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Federal Prosecutor Calls Investment Plan 'Suicidal'
An assistant U.S. attorney says the risk Pittsburgh investment manager Mark Lay took with $215 million of Ohio Bureau of Workers' Compensation funds in a Bermuda-based hedge fund could be equated with someone driving
more than 7,000 miles per hour in a 55 mph zone. By AP via Akron Beacon Journal
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WSI Ordered to Correct Open Meetings Violation
North Dakota's workers compensation board of directors is taking steps to fix a violation of the state's open meetings law. According to an assistant attorney general, Workforce Safety and Insurance officials should
have notified the public that the board had amended a meeting agenda when the board met for training and strategic planning. By AP via Dickinson Press
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Missouri County 'Readjusts' to Stay in Fund
Officials in Scott County, Mo., which has been on the Missouri Association of Counties' watch list, is trying an accident-prevention tack cut down on potential workers' comp claims. Getting kicked out of the
association would be a "disaster," according to the county's presiding commissioner.
Go to the full story by Matt Sanders, Southeast Missourian
Go to the full story by Michelle Felter, Sikeston Standard Democrat
Opinion: Another Win for First State's Self-Insurance Bandwagon
Various studies have ranked Delaware in the top five or 10 states for workers' comp costs, so it's welcome news that 26 towns and two counties have formed a self-insurance group to slash them. Wilmington
News-Journal
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Canada Still Promotes Asbestos to Developing World
Once heralded as the "magic mineral" for its durability in construction projects, asbestos now is responsible for 90,000 deaths a year, according to the World Health Organization. And although Canada does not use much
of it anymore, the country is one of the carcinogenic mineral's biggest purveyors, selling 95 percent of the output from the country's two remaining mines to foreign countries. By Martin Mittelstaedt, Toronto
Globe and Mail
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Prosecutors Drop Felony Charges Against WSI Officials
North Dakota prosecutors dismiss felony conspiracy charges against two Workforce, Safety and Insurance executives due to new information. Sandy Blunt, executive director, and Romi Liengang, special investigations
director, had faced charges relating to the use of state transportation department photos in an investigation to identify the sender of a companywide e-mail that disclosed salary information.
Go to the full story by Crystal R. Reid, Bismarck Tribune
Go to the full story by Dale Wetzel, AP via San Diego Tribune
Rhode Island Judge Awards Workers' Comp to Illegal Immigrant
In a nearly unprecedented case, a Rhode Island judge issues a preliminary order awarding workers' compensation to a 22-year-old illegal immigrant who suffered severe facial injuries in a chainsaw accident last year
while working for a tree services firm, but who was deported to Mexico last year before he could pursue his case.
Go to the full story by Karen Lee Ziner, Providence Journal [With Photo]
Go to the full story by AP via Boston Globe
Bay State Worker's Family Sues City for Wrongful Death
The family of a worker killed in 2004 when a Waltham, Mass., sewer pipe he was repairing flooded files a wrongful death lawsuit against the city and the company that subcontracted his employer alleging negligence.
By Stephanie V. Siek, Boston Globe [With Photo]
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Bomb Scare at Winnipeg WCB Office
Winnipeg police evacuate the Manitoba Workers Compensation Board's downtown offices and close four streets following a bomb threat last week. Winnipeg Sun
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Dozen Charged with Fraud in Queens
In Queens, N.Y., nearly a dozen individuals face charges of workers' compensation fraud totaling more than $300,000, after an investigation by the New York State Insurance Fund, the New York State Insurance
Department's Insurance Frauds Bureau, and the Inspector General's Office of the State Workers' Compensation Board. North Country Gazette
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In Show Me State, County Brainstorms for Protocol
Scott County, Mo. commissioners are working to come up with a protocol for workers' compensation injuries. The county plans to appoint a workers' comp doctor who will see all injured employees, and administer drug
testing the day of the injury. By Michelle Felter, Standard Democrat
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Opinion: Too Soon to Give Up on Privatization
Privatization of West Virginia's workers' compensation system, with BrickStreet Mutual easing the transition to a competitive market, is on its way to a successful launch. Hitting the "abort" button is a bad idea.
Wheeling News-Register
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Fired Illinois Worker Wins Record Punitive Damage Award
An Illinois jury awards a 63-year-old worker $2 million, in potentially the largest punitive damages payout in county history. The former concrete worker suffered spinal injuries in 2002 when a ladder he was using
collapsed; when he applied for workers' compensation, his employer allegedly fired him. By Matt Hanley, Beacon News (Aurora, Ill.)
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California High Court Awards Benefits to Injured Deputy
A lengthy legal battle between Stanislaus County and a former sheriff's deputy has come to a close, as the California Supreme Court rules that he can collect workers' compensation for severe foot injuries he sustained in
2005 when a car driven by a methamphetamine user struck him as he returned from a horseshoeing class. Modesto Bee
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Shocking Incidents Make Tasers a Controversial Weapon
Supporters of the police use of Tasers, which fire tethered cartridges that transmit electrical currents in order to subdue a potential assailant, contend the devices reduce police workers' compensation and lost time
claims. But critics say Tasers are sometimes used as a weapon of first resort on the frail or mentally ill. By AP via KIMA-TV (Yakima, Wash.)
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Dominant Maryland Workers' Comp Insurer Announces Appointment
IWIF Workers' Compensation Insurance, Maryland's largest workers' comp insurer, promotes Paige Beck to executive vice president and chief financial officer. Beck has served as head of the firm's internal audit
department and as assistant vice president of finance. Baltimore Business Journal
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Sunshine State Amusement Park Goes Off Track
Florida officials order construction to stop on a Fort Myers-area amusement park for failure to provide at least eight workers with workers' compensation insurance. NBC-2 (Fort Myers) [With Video]
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MEMIC Expands into Newly-Reformed Empire State System
New Hampshire-based workers' compensation insurer MEMIC, which also has offices in Maine and Connecticut, opens an Albany, N.Y., office in the wake of the state's recent workers' comp reforms. Buffalo Business
First
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Upstate New Yorker Charged with Workers' Comp Fraud
An Albany, N.Y.-area man who had been collecting workers' compensation faces charges of grand larceny for allegedly doing work not consistent with his purported injuries. By David Filkins, Albany Times Union
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North Dakota Judge Tosses Felony Charges Against WSI Director
A judge dismisses two felony charges against the chief of Workforce Safety and Insurance, North Dakota's workers' compensation agency, saying he found no evidence that Sandy Blunt personally benefited from allegedly
illegal gifts and bonuses that were given to employees. By AP via KXMB-TV (Bismarck – Mandan)
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Duncan Back At The Helm Of Industrial Relations
John Duncan, who served as director of the California Department of Industrial Relations (DIR) in the late 1990s, has been renamed to that post by Gov. Schwarzenegger. He takes over for Acting Director
John Rea.
 The position gives him a non-officio position on State
Compensation Insurance Fund's board of directors at an agency that also oversees key workers' comp functions in the state, including the Division of Workers' Compensation and the Workers' Compensation Appeals Board.
After leaving DIR in 1999, Duncan was named president and CEO of Magnitude, a software company specializing in workplace injury prevention programs. More recently, he operated his own consulting company
where he designed communications strategies for clients on labor issues.
The DIR director oversees the Cal/OSHA program, the Division of Workers' Compensation and Workers' Compensation Appeals Board, the Industrial Welfare Commission and the Division of Labor Standards
Enforcement.
Duncan, 49, also has a defense background, having served in the 1980s as deputy assistant secretary of defense for International Security Affairs, assistant to the Secretary of Defense and a special
assistant to former Secretary of Defense Caspar Weinberger.
He earned a bachelors degree in history from U.C. Berkeley and a masters degree in public administration from Harvard University's John F. Kennedy School of Government.
Duncan rejoins a Department of Industrial Relations that is no longer a cabinet-level agency. In 2002, it became part of the new Labor and Workforce Development Agency (LWDA). One of his colleagues at
DIR, former Labor Commissioner Victoria Bradshaw, is now LWDA Secretary. Duncan was chief deputy at the agency when Bradshaw was finishing up her term as commissioner in 1995. He was named acting director in 1997 and
confirmed to the post in 1998.
Duncan, a Republican, now must be confirmed by the state Senate for his latest stint at the $142,965 post.
Rea is reportedly being considered for a senior legal position within LWDA, but agency spokeswoman Rachel Cameron said there is no announcement on such an appointment yet.
Class Action Targets UPS Return-to-Work Policies
A federal judge in Pittsburgh grants class-action status to a lawsuit alleging that United Parcel Service Inc. failed to help disabled employees return to work by modifying working conditions. The suit specifically
contends that UPS had an unwritten policy that allowed employees to return to work only if they had no medical restrictions. By Kris B. Mamula, Pittsburgh Business Times via MLive.com
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Texas Private Equity Firm Buys Procura
Dallas-based Brazos Private Equity Partners LLC announces its acquisition of a majority stake in Procura Management Inc., a Pennsylvania firm that in-part controls medical costs related to workers' compensation. By
Jason Roberson, Dallas Morning News
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Missouri Has New Workers' Comp Boss
Missouri's new workers' compensation director, Jeff Buker, has worked on various division projects in the past year and a half involving self-insurance and the state's troubled Second Injury Fund, the Department of
Labor and Industrial Relations says. By AP via Jefferson City News Tribune
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New Hampshire Workers Face Fraud Charges
Two New Hampshire residents face charges of fraudulently collecting workers' compensation insurance payments while working. Each faces a potential prison sentence. By AP via WCAX-TV (Burlington, Vt.)
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Commentary: BC Employers Get Rate Cut, Still Need to Cut Injuries
WorkSafe BC's proposed 7.6-percent rate cut will drop average premiums to their lowest rate in more than 30 years, giving businesses in the province a further competitive advantage. But there still is significant work
to be done toward cutting workers' injury and death rates, which remain unchanged since 2002. Vancouver Sun
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Australia: Can Jockey Strike Be Averted?
Although they have vowed to strike unless they are granted full workers' compensation coverage, the Tasmanian Thoroughbred Racing Council remains hopeful the state's horse jockeys will ride this weekend. ABC Tasmania
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Perdue Workers Say Medical Centers Pose Conflict of Interest
Workers at a Delaware Perdue Farms processing plant say onsite wellness centers present a potential conflict: the same doctors taking care of the workers' private medical needs also are in charge of treating them for
work-related injuries on behalf of their employer. By Luladey B. Tadesse and Rachael Jackson, News Journal (Wilmington, Del.) [With Photos]
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Presidential Influence on Surgeon General
Recent revelations about the influence of the Bush administration on former US Surgeon General Richard Carmona, MD, have prompted debate on the relationship between the two. How much influence do you think any
president should have on the surgeon general's policies, speeches, and reports? To vote or view results of the poll, click on the title above.
How to Win When Competition Heats Up
In the final installation in our three-part series of interviews with analysts, William Wilt, property-casualty analyst for Morgan Stanley, gives our premium readers his take on how established companies can stay
competitive as new writers enter California's workers' compensation market, and why he doesn't consider California much of a trendsetter. Premium
subscribers can click here to read the Q&A session, or find it in the current print edition of Workers' Comp Executive.
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Excess Weight on Doctors' and Insurers' Shoulders
Obese workers cost employers more in workers' comp costs. Injuries are more likely and healing is more difficult. Premium subscribers can find just how much it costs the system, and why injuries can last longer, all
in the current print of Workers' Comp Executive or by clicking here.
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Job-Related Auto Fatalities
International reinsurance broker Willis Re has released a new study on the frequency of fatalities and injuries in work-related auto accidents. After reviewing the numbers, workers' comp carriers will be looking at
vehicle safety in a whole new light. Premium subscribers can read the article and get the study by clicking here.
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Many Cooks in State Fund Defense Kitchen
The list of lawyers and law firms defending the State Compensation Insurance Fund and various officers and directors in a class action suit is growing. Fired president Jim Tudor and fired vice president Renee Koren
have chosen counsel with criminal experience. Find out who else is involved and how, in the current print edition of Workers' Comp Executive, or if you're a premium subscriber, you can
click here for the latest.
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Mounting Cases, but CDI Short of Officers
It's slim pickin's at the California Department of Insurance these days. CDI's short of fraud investigators and that's leaving many cases wilting on the vine. Why the shortfall? What's at stake? Read the current print
edition of Workers' Comp Executive or premium subscribers can click here.
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PD Bills Seen but Not Heard
This year seemed the right time for lobbyists and lawmakers to smooth the edges around permanent disability. Two PD bills are on the table, but is time on labor's side? Which side do the objective studies fall on, and
what's likely to happen before the end of the session? Premium subscribers can find out here or in the current print edition of
Workers' Comp Executive.
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Yuba-Sutter Farms Fined for Workers' Comp Violations
In an enforcement sweep meant to level the playing field for compliant businesses, authorities hit Yuba-Sutter farm owners with nearly $45,000 in fines for violating workers' compensation requirements and child labor
laws. By Andrea Koskey, Appeal-Democrat (Marysville)
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Garden State Allows Insurers to Limit Workers' Comp Coverage
Insurers are less liable for certain types of workers' compensation claims under a policy change approved by the New Jersey Department of Banking and Insurance. Insurance companies now may narrow coverage and limit
liability in cases in which an employer's actions could have contributed to an accident. By Hugh R. Morley, NorthJersey.com
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More Names Sought for Governing Board of Troubled Bureau
In an effort to provide the Ohio Ethics Commission with more time to determine if potential conflicts of interest exist, Ohio Gov. Ted Strickland asks a panel to submit more names for a new, more powerful board of
directors for the scandal-plagued Ohio Bureau of Workers' Compensation. Elsewhere, Ohio Auditor Mary Taylor argues in favor of proposed legislation
that would establish an independent state audit committee responsible for timely reviewing and reporting the results of internal audits of state agencies including the BWC. Toledo Blade
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Tassie Jockeys Promise Strike over Lack of Workers' Comp
In Tasmania, the only Australian state that does not have a complete coverage plan for medical expenses incurred by Thoroughbred horse jockeys who sustain injuries while riding, jockeys say they will strike starting
August 1. Virtual Form Guide (Australia)
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N.M. Judge Accused of Sexual Proposition Steps Down
Although he calls the accusations against him "not true and ridiculous," a New Mexico workers' compensation judge resigns amidst an accusation that he made sexual advances toward an injured worker in a case he was
mediating. By AP via Santa Fe New Mexican
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South Carolina Overhaul Provides Prison for Scofflaw Employers
In South Carolina, a bill overhauling the state's workers' compensation system is on its way to Gov. Mark Sanford's desk. Under the law, employers who deliberately misclassify employees to save more than $10,000 on
insurance premiums would face up to five years in prison and a $50,000 fine. By AP via WIS-TV (Columbia, S.C.)
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NIOSH: Cancer-Stricken Hanford Workers Should Get Automatic $150K Payouts
The National Institute for Occupational Health is recommending that former Hanford nuclear reservation workers automatically receive $150,000 payments if they develop any of a wide range of cancers. By AP via KXLY-TV
(Coeur d'Alene, Idaho)
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Arkansas WCC Looked at Wrong File in Denying Claim: Court
The Arkansas Workers' Compensation Commission's decision to deny temporary total disability benefits to a bakery worker was based on a review of the wrong patient's medical record, the state Court of Appeals finds.
By John Lyon, Morning News (Springdale, Ark.)
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Fraud Sweep Nets Dozens in Suburban New York City
In what they call the largest sweep of its kind since the 1996 creation of the Office of the Fraud Inspector General, New York State Workers' Compensation Board officials and state police bust dozens of
employers in Westchester County, N.Y. for failing to pay for workers' compensation insurance for employees. They could face up to four years in prison, in addition to fines.
Go to the full story by Jorge Fitz-Gibbon, Journal News (White Plains, N.Y.)
Go to the full story in WABC-TV (New York)
B.C. Supreme Court Orders Review of Gondola Victim's Case
A British Columbia Supreme Court judge orders the provincial Workers' Compensation Board to review the case of a 38-year-old Pacific National Exhibition ride technician who was struck in the back by a gondola in 2000.
The board denied his claim twice on grounds that his pain was not attributable to the accident. By Linda Nuyen, Vancouver Sun
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Commentary: Workers' Comp Rollback Unlikely
Although Gov. Arnold Schwarzenegger has drifted to the left on the environment, the budget, health care and some other issues, he constantly trumpets employers' multibillion-dollar savings in the workers'
compensation system as a result of the 2004 overhaul. Despite pressure from labor unions, medical care providers and workers' comp attorneys, the legislature has been reluctant to roll back the 2004 changes. By Dan
Walters, Sacramento Bee
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Audit of Connecticut Treasurer Targets Settlements
An audit of Connecticut's state treasurer's office for fiscal year 2005 makes four recommendations involving the state's second injury fund, particularly with respect to the treasurer's involvement with the
Workers' Compensation Commission in certain settlements with injured workers. The audit also says the fund needs better financial controls. By Sean O'Leary, Hartford Business Journal [With Photo]
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Another Rate Cut in West Virginia
On top of the 15 percent aggregate reduction in workers' compensation rates in January 2006, which came when the West Virginia workers' compensation system transitioned from a state agency to BrickStreet Mutual
Insurance Co., and a 10 percent aggregate reduction about a year ago, the state's insurance commissioner says there will be an aggregate 2 percent reduction in workers' comp rates in July. However, employers will see
a regulatory surcharge and a debt-reduction surcharge on their invoices. Charleston Gazette
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Ohio BWC Director Vows to Rectify Slow Payments
Ohio officials admit that until last week the state did not begin recalculating benefits due to 1,954 workers who were injured while on welfare jobs, despite a December court ruling requiring it. Calling the lapse
unacceptable, the new director of the Ohio Bureau of Workers' Compensation says the agency should have been ready to make the new calculations in March. By Andrew Welsh-Huggins, AP via Akron Beacon Journal
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South Carolina's Reforms Expected to Be Finalized This Week
When South Carolina legislators go to work in a special session this week, finalizing business-friendly changes to the state's outdated
workers' compensation system will be at the top of their to-do list. By Heidi Cenac, Anderson Independent Mail
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Mine Flood Survivor Describes Ordeal, Frustrating Aftermath
Within days of surviving a flash-flooded Saskatchewan uranium mine last October, a miner and father of five was laid off along with about 100 other contract workers. He now suffers from post-traumatic stress
disorder and barely scrapes by after the denial of his application for workers' compensation benefits. By Graham Andrews, Saskatoon StarPhoenix [With Photo]
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Chronic Pain? Try Pins and Needles
Will California's Division of Workers' Compensation finally get around to adopting ACOEM guidelines mandated by the legislature? When is this likely to happen? And what does this mean for medical costs? Premium
subscribers can find the answers to these questions and more by clicking here or reading it in the current print edition of
Workers' Comp Executive. Others will have to wonder what's really going on.
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UR Warnings: Danger Ahead for Payors
Utilization review audits and fines are the order of the day again. Is it deja vu or has something changed? Does the number of call-in complaints in relation to the claims counts tell us that it's much ado about
nothing? Premium subscribers can decide after they read this article online or in the current print edition.
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Attorney Asks Court to Publish Cumbre Opinion
A plaintiff's counsel has asked an appeals court to publish its opinion in the Cumbre Insurance Services v. State Compensation Insurance Fund case from last month. Find out why in the current print edition of Workers' Comp Executive.
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Rates Are In
Carriers have filed rate changes before and following Insurance Commissioner Steve Poizner's announcement of a 14.2 percent decrease. We list the major rate changes by insurers
here.
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State Fund's Larry Mulryan: Exclusive Interview
An exclusive interview with State Fund Interim President Larry Mulryan shows his top-quality management mettle and offers a unique perspective on daily activities and strategic plans. There are some interesting
developments here. Offered in the clear as a public service, anyone can click here to read the full story.
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Sacramento Dems Want Voc Rehab Variation Back
California workers' comp reform savings are attacked again on a whole new level. Two bills winding their way through the process deal with a new kind of voc rehab. Premium subscribers can find out if they're really
going to provide it in advance by clicking here, or reading it in the current print edition of
Workers Comp Executive.
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Interview with A.M. Best's Analyst Mark Murray
Ever-changing variables have made California a tricky place to write workers' compensation, but those looking in from the outside see a myriad of both dangers and opportunities. In the first of a three-part sit-down
with industry analysts, A.M. Best's Mark Murray shares his cautiously optimistic view on legislative rollbacks, rate decreases and more. This story is available online to premium subscribers as well as in the current print edition of Workers' Comp Executive.
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LVIII. Publius: If I Had a Hammer
Publius goes out on a limb this time and makes utilization review come alive with choice lines such as "presumption of incorrectness." Publius' cynicism on this issue reaches new levels. This clear commentary is
available to all for free by clicking here. Enjoy.
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Asbestos Claims Increase
Hundreds of asbestos-related claims are wending their way through California's workers' comp system. These seemingly arcane claims are far from over, and attorneys say it could be decades yet before
these unique cases have all been put to bed. You'll be surprised to find out how many cases there are and how they are adjudicated. Did we say double-dipping? Premium subscribers can
read the story here or in the current print edition of Workers' Comp Executive.
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Software Aligns Data Collection to Snare Worker's Comp Scofflaws
The ability of California's workers' compensation scofflaws—an estimated 100,000 businesses statewide—to operate below law enforcement radar, unfairly gaining an advantage over law-abiding competitors, is threatened with
the expected passage of SB 869. The software will "straighten out the software," according to State Sen. Mark Ridley-Thomas, D-L.A., by matching employers' reports of payroll with records of insured employers. By Marton
Dunai, Contra Costa Times
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Mexico Nonprofit Schools Migrants on Workplace Rights
The Center for Migrant Rights is a small nonprofit group based in the central Mexican state of Zacatecas that provides free legal aid to immigrant laborers seeking compensation for injuries or missed pay. Rachel
Micah-Jones, a U.S. lawyer who founded the Center in 2005, says reaching illegal workers is difficult because of their fear of authorities and the arrests two years ago of 48 workers in a "sting" in North Carolina. By
Monica Campbell, San Francisco Chronicle
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Missouri Reform Shows Employers the Money
Two years after Show Me State lawmakers made it more difficult for injured workers to qualify for workers' compensation, employers' premiums have dropped to 1994 levels. However, neither insurers nor government
officials who oversee the state's workers' comp system say the most recent drop in rates can be attributed solely to the 2005 reform. By AP via Springfield News-Leader
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Oversight of Ohio's Troubled Agency Overhauled
Gov. Ted Strickland of Ohio signs a two-year Bureau of Workers' Compensation budget bill intended to overhaul the scandal-plagued agency. Changes include replacing the bureau's oversight commission with a board of
directors appointed by the governor and an oversight council of legislators, and creation of a new deputy inspector general's post devoted solely to investigating the BWC and the Industrial Commission.
Go to the full story by Mark Rollenhagen, Cleveland Plain Dealer
Go to the full story in Business First of Columbus
Arizona Senate Gives Final Approval to Benefit Hike
Injured Arizona workers would be able to collect more benefits beginning next year under legislation that the Senate overwhelmingly approved Monday. Workers hurt in job-related mishaps are supposed to be paid
two-thirds of their salary; current law limits that amount to $1,600 a month. By Howard Fischer, AP via Arizona Daily Sun (Flagstaff)
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Commentary: Fixing Medical Pros' Errors in Comp System
Peter Rousmaniere, a Vermont-based consultant and writer, argues that in workers' compensation claims management, there are three main types of errors in medical professionals' decision-making. Controlling them can
help insurers cut loss ratios. By Peter Rousmaniere, Risk and Insurance
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Panel Reinstates Jury Award in Alleged Retaliatory Firing
A Michigan body shop worker who claimed he was fired from a body shop for threatening to file complaints about painting operations with MIOSHA is entitled to an $80,000 jury award, a three-member appellate panel
rules. By Dennis Pelham, Daily Telegram (Adrian, Mich.)
Go to the Full Story...
Washington's Rate Holiday in Effect
Washington employers and workers will save $315 million over the next six months as the Department of Labor and Industries declares a "rate holiday" for certain premiums paid to a workers' compensation fund. That
means Washington workers will see less money deducted from their paychecks. By C.R. Roberts, Tacoma News Tribune
Go to the Full Story...
Sunshine State Legislation Aids First Responders
Legislation passed late last week in Florida would ease workers' compensation requirements for police, firefighters, paramedics and other first responders for benefits related to occupational diseases. It also would
increase benefits for responders who have a mental or nervous injury and extend payment of total disability benefits to certain retirees.
Go to the full story by AP via WPBF-TV (Palm Beach Gardens, Fla.)
Go to the full story in the Lakeland Ledger
Bloomberg Names Sept. 11 Health Czar
New York City Mayor Michael Bloomberg appoints a new pointman on World Trade Center illnesses. Jeffrey Hon's job will be to smooth out inconsistencies in pension benefits among city agencies whose employees responded
to the Sept. 11 terrorist attacks. By Jordan Lite, New York Daily News
Go to the Full Story...
Spitzer Targets Worker Misclassification
New York Gov. Eliot Spitzer plans to step up enforcement against thousands of employers that misclassify workers as independent contractors to avoid taxes and workers' compensation. By Steven Greenhouse, New York
Times
Go to the Full Story...
Ontario Premiums to Stay Steady for Second Straight Year
Average premiums for workers' compensation in Ontario will remain unchanged in 2008 for the second year in a row, according to the province's Workplace Safety and Insurance Board., based on the expectation that health
and safety and return-to-work rates will continue to improve. By Canadian Press via Toronto Star
Go to the Full Story...
Connecticut Police Official Helps Town Correct Benefits Snafu
"Painstaking" scrutiny by a West Haven, Conn. Police Department benefits coordinator of every active and retired police officer's files since her arrival in 2004 helps the town recover $327,000 in workers'
compensation benefits that it paid instead of the state. By Melissa Yaremich, New Haven Register
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South Carolina Gov Praises Workers' Comp Bill
By agreeing on "business-friendly" workers' compensation reform, lawmakers in South Carolina managed to meet one of Gov. Mark Sanford's top priorities just before the session adjourned. Rates in the state have spiked
in the past two years, and change in the law was a top priority of the business sector. By Zane Wilson, Myrtle Beach Sun
Go to the Full Story...
SCIF Governance Proposal
Last week the Workers' Comp Executive in its print edition published a commentary by our publisher Dale Debber along with a draft proposal – with the legal language as a starting place for the
discussion.
Although we had intended this content to be in the clear and freely available, (as opposed to available only to premium subscribers) we goofed and didn't do it. At the request of many readers (Thanks
everyone) we have corrected that situation.
You may read the commentary and see the draft legislation by
clicking here.
Responses:
We are amazed at the positive responses we have received so far. Some critical of the number of board members, other think it's not enough. All of the responses have agreed that the Governance of State
Fund must be dealt with and dealt with as quickly as posisble by the legislature so that next January the Governor may take the actions necessary to create a more accountable organization.
Arizona Lawmakers Incentivize Employer Drug Testing Programs
The Arizona House of Representatives approves a bill that would allow workers' compensation insurers to give policyholders a 5-percent discount for having drug-testing programs. The measure—a reaction to the
inability of employers to block workers' comp benefits to injured employees who test positive for drugs or alcohol—is awaiting a full vote of the Arizona Senate. By Howard Fischer, Arizona Republic
Go to the Full Story...
Bill Proposes Drug Tests for Injured Silver State Workers
Injured Nevada workers could face required drug tests to prevail in insurance disputes if an industry-backed proposal passes. The Nevada Senate Commerce and Labor Committee has heard testimony on SB54, which
would change workers' compensation rules so that any worker who refuses to take a post-accident drug test would be presumed intoxicated. By Joe Mullin, AP via Sparks Tribune
Go to the Full Story...
New York Lawmakers Pass Reform Deal
The New York Assembly and Senate each unanimously pass a bill that
will raise the maximum benefit injured workers can collect, while lowering the costs of workers' comp to business. It does so by capping the recovery period partially disabled workers can collect benefits and cracking
down on scofflaw employers. By Jay Gallagher, Rochester Democrat and Chronicle
Go to the Full Story...
Q&A: How Tax Payments Are Determined on Collected Workers' Comp
Question: Do you pay tax on collected workers' compensation? By Kate Prahlad, Baltimore Examiner
Go to the Full Story...
Ohio Settles with Time Warner over BWC Loss
The state of Ohio reaches a $144 million settlement with Time Warner Inc., Ohio Attorney General Mark Dann announces. The state sued in 2003 on behalf of five state pension funds and the Ohio Bureau of Workers'
Compensation that said they lost $400 million when Time Warner's stock fell dramatically after the 2001 deal in which it was acquired by America Online. WTOP Radio (Washington, D.C.) [With Photo]
Go to the Full Story...
Locomotive Engineers Sue for Job-Related Injuries
A St. Louis personal injury firm files two Federal Employers' Liability Act lawsuits in St. Clair County, Ill., on behalf of locomotive engineers who claim job-related injuries. By Ann Knef, St. Clair Record
Go to the Full Story...
S.C. County Recognized for Risk Management Program
In trying to cut workers' compensation insurance premiums and payouts over the past two years, Spartanburg County, S.C., wins statewide recognition for developing an original risk management software program. By
Monica Mercer, Go Upstate (Spartanburg, S.C.)
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Blogworld: Tort Reform and Workers' Comp
Some young lawyers, and many of corporate executives, insurance lawyers, and corporate counsel, may have forgotten that the workers' compensation program was implemented as a tort reform measure. Kentucky Law Blog
via Tort Deform
Go to the Full Story...
Arbitrator: AIG Owes Comp Insurers $443.5 Million
An arbitration panel determines that an American International Group Inc. subsidiary should pay more than $443.5 million to a group of insolvent workers compensation insurers to resolve a reinsurance dispute, according
to California Insurance Commissioner Steve Poizner. The award is subject to court approval. By Dave Lenckus, Business Insurance (Chicago)
Go to the Full Story...
Fontana Woman Nabbed for Suspected Comp Fraud
Authorities in Fontana arrest a 47-year-old woman they say filed two workers' compensation claims but failed to disclose the complete history of her industrial injuries while seeking treatment. By Gina Tenorio,
Daily Bulletin (Ontario)
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More Details on Strickland's Oversight Panel Proposal
As part of his massive two-year budget proposal for the Bureau of Workers' Compensation and Ohio Industrial Commission, Ohio Gov. Ted Strickland is calling for the creation of a new investigator
exclusively focused on the agency. Strickland wants to replace the 11-member oversight council with a stronger 15-member panel that includes greater representation for labor, business, and financial experts.
Go to the full story by Jim Provance, Toledo Blade [With Photo]
Go to the full story by Matt Leingang, AP via Cleveland Plain Dealer
Ohio County Offers Wage Continuation Option to Cut Comp Costs
In an effort to reduce its workers' compensation rates, Wayne County, Ohio offers a wage continuation option to employees: instead of filing a claim with the Ohio Bureau of Workers' Compensation, some workers can
continue to receive a paycheck from the county while still accruing retirement, insurance, vacation and sick time benefits. By Bobby Warren, Daily Record
Go to the Full Story...
South Carolina Bill Targets Captive Insurers
A bill in the South Carolina Legislature would allow captives domiciled in the state to write primary workers compensation coverage. The Democrat-sponsored bill is in response to high premium costs and slow progress
with respect to reforms. By Roberto Ceniceros, Business Insurance
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Perspectives on Empire State's 'Fair Deal'
The New York Legislature is expected to approve the increases in workers' compensation benefits and decreases in premium costs that business and labor hammered out last week under Gov. Eliot Spitzer's
guidance. Here are three perspectives on the Empire State's long-awaited overhaul.
Go to the full article in the Journal News (White Plains, N.Y.)
Go to the full article in Newsday (Long Island, N.Y.)
Go to the full article in Tort Deform
NSW Premier Holds the Line on Tort Reforms
In Australia, New South Wales Premier Morris Iemma attacks lawyers and union leaders who are demanding more lucrative workers compensation. Vowing not to roll back tort reforms, Iemma says they reforms have saved the
workers' comp system from collapse and "put more money in the pockets of injured workers, and less in the pockets of lawyers." By Ean Higgins and Susannah Moran, the Australian
Go to the Full Story...
Texas Court Case Raises Unusual Issue
A 2003 case in which an unincorporated Texas self-insurance fund that provides workers' compensation insurance sued a claims manager raises the issue of whether a prevailing plaintiff can contest the legal fees
incurred by the defense.
By John Council, Texas Lawyer via Law.com
Go to the Full Story...
The Legislature's Good, Bad and Ugly
Rest assured, it is going to be an entertaining legislative year as spot bills are introduced, and premium readers can find out what's inside the sausage as new bills and old ideas make the rounds: which will pass, which
will die and which are they laughing at? Find out, if you're a premium subscriber, by clicking here.
Go to the Full Story...
WCAB Decisions Affect Reserves and X-Mods
A series of decisions by the California Workers' Comp Appeals Board have caused carriers to increase reserves on certain claims. Could the direction shift with the winds of change and if so, what needs to happen
first? Premium subscribers can read the whole story and find out which decisions, which cases and how employers' X-Mods might be affected. Of course, they have to click here.
Go to the Full Story...
California Claims Adjustment Expenses Increasing
In this fact-filled story, which helps explain why rates have leveled off and may increase, premium subscribers will learn what new costs are driving the system. Premium subscribers can click here for the full story.
Go to the Full Story...
CIGA Loses Small Claims Case
Call it the case of the small-minded small claims judge. It seems a small claims court in Los Angeles (how could we even think it'd not be there?) ruled in favor of an employer who sued CIGA for the unearned portion
of paid premium when a carrier was seized by the Department of Insurance. To appeal or not to appeal isn't even the question. Find out what the question is and laugh yourself all the way to Sacramento. If you're a
premium subscriber, you can get it now by clicking here.
Go to the Full Story...
Self-Insured Groups Want Tax Change
Self-insured groups collect assessments from their members to pay claims. Find out how some of those claims reserves are taxable as an unintended consequence and what proposals there are to change its status. Premium
subscribers can also find who's pro and who's con and why by clicking here.
Go to the Full Story...
Sweep Targets Six Yuba City – Marysville Establishments
A Yuba City grill, one of six Yuba City and Marysville restaurants cited for a total of $44,500 in labor law violations, reopens four days after having to shut down for failing to provide workers' compensation
insurance to its employees. The owner of the Downtown Grill says she was unaware coverage had been canceled. By John Dickey, Appeal-Democrat (Marysville)
Go to the Full Story...
Key Elements of New York's 'Win-Win' Deal
Under New York's workers' compensation reform agreement, the maximum weekly benefit will increase from $400 to $500 initially and the minimum weekly benefit will rise from $40 to $100. Moreover, employers will
see initial premium cost reductions of 10 to 15 percent, and inspectors will have power to shut down jobs on which employers are not paying for workers' comp insurance.
Go to the full story by Jay Gallagher, Rochester Democrat and Chronicle
Go to the full story in Gothamist [With Photo]
In West Virginia, Exemptions Come with a Price
While some West Virginia small business legally can avoid the $750 minimum in annual workers' compensation insurance premiums by getting an exemption, they won't be covered. By George Hohmann, Charleston Daily
Mail
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Colorado Contractors Exploit 'Worst Kept Secret' in Construction
In some trades including drywalling, roofing and concrete work, at least a third of Colorado workers may be illegal immigrants, according to local construction trade organizations and unions. Contractors exploit this
situation paying cash and illegally failing to provide workers compensation coverage. By Myung Oak Kim, Fernando Quintero and Laura Frank, Rocky Mountain News [With Photo]
Go to the Full Story...
New York: Deal Reached on Workers' Comp Reform
New York Gov. Eliot Spitzer and state legislative leaders agree to overhaul the state's low-payout, high-cost workers' compensation system, which upstate business leaders have long complained strains the construction and
manufacturing sectors of the economy. Major changes include a cap on how long partially disabled workers can collect benefits and elimination of the state's Second Injury Fund.
Go to the full story by Jay Gallagher, Rochester Democrat and Chronicle
Go to the full story in Business First of Buffalo
Go to the full story by Danny Hakim and Steven Greenhouse, New York Times
Unions Appeal Denial of Their Attack on Missouri Reform
Missouri's 2005 workers' compensation reform raised the bar on proving a compensable workplace injury, and business groups are pleased. But coalition of 73 unions intends to argue to the Missouri Supreme Court that it
altered the system so much that it is no longer a viable alternative to a lawsuit. By Jeremy Elwood, Springfield Business Journal [With Photo]
Go to the Full Story...
Contractor Allegedly Claimed No Employees When Roofer Killed
Authorities charge a Binghamton, N.Y. roofing contractor with filing false documents with the state Workers Compensation Board to the effect that the company had no employees when a worker was fatally injured on a
roofing job last fall. By Jim Wright, Press & Sun Bulletin
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Army Responds to Allegations of Disability Underrating
While acknowledging that its Physical Disability Evaluation System has shortcomings, the Army disputes statements by Disabled American Veterans that the Army systematically gives injured soldiers' lower disability
ratings than they deserve as part of a "bureaucratic game to preserve the budget." By Jeff Schogol, Stars and Stripes
Go to the Full Story...
Commentary: Connecticut's Current State of Affairs 'Frightening'
Connecticut State Sen. Edith Prague, chairman of the Labor and Public Employees Committee, responds to a recent Norwich Bulletin editorial on proposed adjustments to the state's workers' compensation laws that she
says "demonstrated a complete lack of understanding " of what it takes for an injured worker to receive benefits. By Edith Prague, Norwich Bulletin
Go to the Full Story...
Ontario WSIB Pledges Cancer-Prevention Efforts
The Ontario Workplace Safety and Insurance Board states that it is focusing on linking prevention and occupational disease in an effort to combat the rising trend in work-related cancers over the last decade. By
Brian Baker, Daily Commercial Online (Ontario, Canada)
Go to the Full Story...
Commentary: Iowa Bills Deserve Tough Scrutiny
Iowa State Sen. Pat Ward discusses several bills that could challenge the bottom line cost of doing business in the Hawkeye State, including one that would repeal employer choice of medical providers in workers'
compensation claims and another that would allow claims to be made in Iowa for injuries suffered by an employee while working outside the state. Des Moines Register
Go to the Full Story...
Arizona Chamber Protests Workers' Comp Proposal
Arizona State Rep. Russell Pearce, who wants to prevent injured illegal alien workers from collecting workers' compensation, runs into opposition from the Arizona Chamber of Commerce and Industry, which fears lawsuits
more than payouts. The lawmaker contends many employers do only the minimum to ascertain whether their workers are legal. By Howard Fischer, Arizona Star
Go to the Full Story...
West Virginia's Exclusive Comp Insurer Pays Commissions to Agents
West Virginia employers have only one option for workers' compensation insurance: BrickStreet Mutual Insurance. But the company has begun paying 4-percent commissions on workers' comp policies to insurance agents who
represent it, to the tune of an expected $20 million annually. By George Hohmann, Charleston Daily Mail
Go to the Full Story...
How Marriott Cut Workers' Comp Drug Costs
It's difficult for employers to control escalating prescription drug costs in health care plans and even harder in workers' compensation plans. Here is how Marriott International, which self-insures for workers' comp
and administers the program itself, got a handle on the problem. By Elizabeth Agnvall, SHRM (Society for Human Resource Management)
Go to the Full Story...
Toronto Branded 'High-Risk' Employer
Ontario's Ministry of Labour declares the City of Toronto a "high-risk" employer because of its poor health and safety record. As a result, the city is subject to more intensive and more frequent safety inspections,
and pays higher workers' comp premiums. By John Spears, Toronto Star
Go to the Full Story...
Canada: WCB Probes Cancer Claims by Shipyard Workers
Workers' compensation officials in Newfoundland and Labrador say they will fully investigate complaints from 15 former Marystown Shipyard workers who say workplace exposure to asbestos and toxic chemicals caused their
lung, stomach and bowel cancers. CBC News [With Photo]
Go to the Full Story...
Employee Misclassification a Concern in Western New York
In the Elmira, N.Y. area, illegally classifying regular workers as independent contractors is apparently on the rise in the construction industry. Scofflaws do it to exempt themselves from paying compensation or
disability payments, which are based on the number of workers employed. By G. Jeffrey Aaron, Elmira Star-Gazette
Go to the Full Story...
Idaho Bills Target Law Enforcement
Two bills pending in the Idaho Legislature address compensation of injured law enforcement personnel, who often receive more assistance from homegrown fundraisers than from the state. But questions arise as to which
job-related injuries the state should cover. By Cassidy Friedman, Times-News (Twin Falls, Idaho) [With Photo]
Go to the Full Story...
L.A. County Sees Another Drop in Workers' Comp Costs
For the second consecutive year, workers' compensation and litigation costs drop in Los Angeles County, where officials have cracked down on abuses and boosted wellness efforts. Chief Administrative Officer David Janssen
says the drop is due partly to the state's workers' comp reforms. By Troy Anderson, Daily Breeze
Go to the Full Story...
Bakersfield Woman Faces Fraud Charges
Kern County officials charge a 40-year-old Bakersfield woman, whom Insurance Commissioner Steve Poizer says has "quite an appetite for insurance fraud," with fraudulently billing insurance carriers hundreds of
thousands of dollars. The woman's husband and mother also face charges. Bakersfield Californian
Go to the Full Story...
Workers' Comp Amendment a 'Tough Sell' in Land of Enchantment
A bill in the New Mexico Legislature that would amend the state Workers' Compensation Act to include injured farm and ranch laborers gets a lukewarm reception due to perceived administrative problems. The bill would
cost the state an estimated $150,000 to $275,000 in 2008, and expenses would recur annually, according to the Legislature's fiscal report. By Marlena Hartz, Clovis News Journal
Go to the Full Story...
Agency Names Arkansas Waste District a Hazardous Employer
The Arkansas Workers' Compensation Commission puts the Northeast Arkansas Regional Solid Waste Management District on its list of hazardous employers because of its injury record. By Amanda Harris, Jonesboro Sun
Go to the Full Story...
Hardie Makes First Payment to Asbestos Fund
James Hardie Industries makes an initial payment of $184.3 million to a fund that intended to compensate
victims of asbestos-related diseases. The Age (Melbourne)
Go to the Full Story...
Will President Hear Self-Proclaimed Voice of Sept. 11 Responders?
Vito Valenti, who worked at Ground Zero in the aftermath of the Sept. 11 terrorist attacks on the World Trade Center and is now strapped to an oxygen tank, wants to be the voice of ill recovery workers in their quest
for compensation. By Brian Zanzonico, Franklin Square/Elmont Herald [With Photo]
Go to the Full Story...
Victim's Mother Plans to Sue Iron Works
An Ohio woman criticizes the $2,000 fine Fed-OSHA levied against an iron works following the crushing of her son by a forklift last August, and plans to sue the employer. Fed-OSHA determined that the company
improperly allowed the use of a shop-made jack that had not been tested or marked with a maximum load capacity. By Bevin Peppard, Marion Star [With Photo]
Go to the Full Story...
Bird Sanctuary Grounded over Late Payment
Suncoast Seabird Sanctuary, a Tampa-area waterfront refuge for injured wild birds, is shut down for failing to make a workers' compensation insurance payment. Its future, and that of the birds, is bleak. By
Cristina Silva, St. Petersburg Times
Go to the Full Story...
Three En Banc Workers' Comp Decisions Released
Sharon Babbit v. Ow Jing dba National Market
The Workers Compensation Appeals Board has just released three En Banc decisions. In one case (Sharon Babbitt v. Ow Jing dba National Market; and Golden Eagle Insurance Company, STK 0174793) the
Board granted reconsideration to study the issue.
According to the Appeals Board decision, the applicant, Sharon Babbit, sustained admitted industrial injury to her back and neck in July of 1999 while employed as a stock clerk by Ow Jing, doing
business as National Market, and was insured by Golden Eagle Insurance Company. The claim was resolved in April of 2003 with an Order stipulating an award of 52% permanent disability and future medical
treatment.
Babbit contended she could not be transferred into a medical provider network (MPN) because her date of injury and award predate the January 1, 2005 effective date of the MPN statutes enacted by the
Legislature as part of Senate Bill 899 (SB 899) in April 2004. (Stats. 2004, ch. 34; Lab. Code, §§ 4600(c) and 4616 through 4616.7.)
The Appeals Board has granted reconsideration to study the legal issue presented, and that the defendant may satisfy its obligation under Labor Code section 4600 to provide reasonable medical treatment
by transferring Babbit into an authorized Medical Provider Network regardless of the date of injury or the date of an award of future medical treatment.
Joseph Baglione v. Hertz Car Sales
In a second ruling (Joseph Baglione v. Hertz Car Sales, and AIG, Adjusted by Cambridge Integrated Services, SJO 0251644), the board ruled on three matters. The first is that the extent of
applicant's permanent disability is deferred. The second ruling says the issue of attorney's fees is deferred. And the board's third ruling says the April 1997 Schedule for Rating Permanent Disabilities is
applicable.
The case involves an industrial injury to Joseph Baglione's lower back in June 2003, which caused permanent disability of 10%.
The Board held that because a comprehensive medical-legal report issued in this case before January 1, 2005, the former Permanent Disability Rating Schedule (PDRS) applies under section 4660(d), whether
or not the comprehensive medical-legal report indicates the existence of permanent disability.
This holding involved one of the exceptions under Labor Code section 4660(d) that, if triggered, would result in determining permanent disability in a case under the former PDRS, rather than under the
new PDRS effective January 1, 2005.
Josh Pendergrass v. Duggan Plumbing
And in its third ruling, the Workers Compensation Appeals Board (Josh Pendergrass v. Duggan Plumbing; and State Compensation Insurance Fund, SAL 0110868) held that because an employer's duty to provide
notice under Labor Code section 4061 arises with the first payment of temporary disability indemnity, if the first date of compensable temporary disability occurred prior to January 1, 2005, the former Permanent
Disability Rating Schedule (PDRS) applies to determine the extent of permanent disability in that case.
This holding also involved one of the exceptions under Labor Code section 4660(d) that, if triggered, would result in determining permanent disability in a case under the former PDRS rather than under
the new PDRS effective January 1, 2005.
This case involves applicant Josh Pendergrass, who sustained an admitted industrial injury to his right, lower extremity/ankle June 2004. State Compensation Insurance Fund accepted liability for
Pendergrass' injury and paid temporary disability indemnity uninterrupted from June 30 through July 19, 2005. The parties went to trial in November 2006, primarily on the issue of whether Pendergrass' permanent
disability should be determined under the 1997 Schedule or the 2005 Schedule.
Death Benefit To Estate Declared Unconstitutional
In a much anticipated decision, California's Second District Court of Appeal has ruled that it is unconstitutional to award a workers' comp death benefit to the estate of a deceased worker. In the case,
Six Flags, Inc. vs. Workers' Compensation Appeals Board, Macbunyanunda, the appellate court says it was unconstitutional to award a $250,000 death benefit to an estate because the California constitution does
not identify estates as a beneficiary class entitled to such benefits. The court upheld the right of the Department of Industrial Relations Death Without Dependents Unit to receive $125,000 upon the death of the
worker who had no dependents.
According to the decision, this is the first time a California workers' comp statute has been declared unconstitutional in more than 70 years. It's also a relief for insurers and employers that until
this decision were saddled with a possible $375,000 liability if a worker without dependents dies. The State Compensation Insurance Fund has several of these cases pending.
Bantita Rackchamroon, a Thai national, worked for Six Flags as an operator hostess in a summer job away from home when she was tragically killed after the theme park's Scream roller coaster struck her
in April 2004. Rackchamroon had no full or partial dependents and, according to California workers' compensation law, death benefits – approximately $125,000 –would have been escheated to the state. But a workers'
compensation judge also awarded her estate $250,000 as per a statute effective that year. The carrier, Pacific Employers Insurance, argued that the statute was unconstitutional. The Workers' Compensation Appeals Board
does not have the power to determine the constitutionality of a statute, so Pacific Employers' request for reconsideration was denied. The insurer filed a writ with the appellate court.
The court ruled that the state cannot award death benefits to the estate of an injured worker without an amendment to the constitution making the estate a beneficiary. The court cites prior case law
demonstrating this requirement, and the Legislature recognized it had a duty to meet constitutional scrutiny. In 1972 the passage of a constitutional amendment made the Department of Industrial Relations a beneficiary
in the event an injured worker without dependents dies.
In 2002, the Legislature added a statute making a deceased worker's estate a beneficiary. However, the Legislature failed to push for a ballot initiative that would have amended the constitution to make
estates eligible for death benefits. Even the Department of Industrial Relations opined that the provision permitting a $250,000 payment to the estate was unconstitutional. But nonetheless, the Legislature passed and
then Gov. Gray Davis signed the bill that made a deceased worker's estate a beneficiary. The implementation was delayed for one year, but that did not alter the fact that it was unconstitutional. In its opinion, the
court reiterates that the purpose of the workers' comp system is to compensate injured workers and those dependent upon them. The decision reads in pertinent part:
"[A] probate estate may, by will, pass the estate or res property to any designated person or entity, including persons who do not qualify as dependents under the Labor Code. Therefore awarding a
workers' compensation death benefit of $250,000 to non-dependents does not further the underlying policy of the workers' compensation laws, which is to compensate workers and their dependents for a loss of earnings
based upon death."
State Fund Announces Seventh Straight Rate Cut
State Compensation Insurance Fund files 2007 workers' compensation insurance rates calling for a 9 percent average decrease in collectible premium. The new rates will affect new and renewal workers' compensation
policies with an effective date on or after January 1, 2007. Workers' Comp Executive
Go to the Full Story...
Workers' Comp Reform Near Top of Alaska Chamber's Wish List
The Alaska State Chamber of Commerce adopts five legislative priorities for the upcoming session, one of which is to improve the state's workers' compensation system through regulatory reform to Alaska's 2005 workers
comp bill. Alaska Journal of Commerce
Go to the Full Story...
Q&A: Reinstatement After Medical Clearance
The Eugene Register-Guard follows up its question-and-answer regarding whether a staff veterinarian who was injured on the job must be reinstated after acquiring a full medical release, when his position had been
filled while he was off-work by a more accomplished veterinarian in the field. Eugene Register-Guard
Go to the Full Story...
Safety Requires Physical, Emotional Investment
To effectively deliver a safety message to employees, regardless of the training method used, it is important to get them involved physically and emotionally in the learning process. Interactive online training is an
emerging tool, but it's one of several effective methods. By Katherine Torres, Occupational Hazards
Go to the Full Story...
Rates in Canada's North Going Down, But Reasons in Dispute
Workers' compensation insurance premiums for many businesses in the Northwest Territories and Nunavut, already about 15 percent below the rest of Canada, are going down even more as a result of good investments and
fewer claims, says the board. But others contend the reduction is a result of the board denying legitimate claims by injured workers. CBC North (Canada)
Go to the Full Story...
Commentary: Injured Albertans Deserve Better
Despite years of reviews, studies, reports and promises by the Alberta government to reform Alberta's notorious Workers' Compensation Board, nothing ever seems to really change. Does anyone in the government have the
guts to rein in this beast? Edmonton Sun
Go to the Full Story...
Florida Framer Busted for Fraud in Hiring Illegals
A Jacksonville house framer pleads guilty to defrauding the Internal Revenue Service of $510,000 as part of a conspiracy with other area subcontractors to hire illegal immigrants and avoid payroll taxes and workers'
compensation insurance. By Paul Pinkham, Florida Times-Union (Jacksonville)
Go to the Full Story...
Sheriff Gobble Formalizes Policy on Covering Injured Employees
In response to the shooting of an officer, Bradley County, Tenn. Sheriff Tim Gobble drafts a new policy that will provide full pay to employees who are injured on the job until they return to work, providing the
difference between workers' compensation benefits and regular take-home pay. The Chattanoogan
Go to the Full Story...
SCIF Confirms Vacaville Site
State Compensation Insurance Fund confirms that it will move hundreds of workers from San Francisco to a Vacaville site near the intersection of highways 80 and 505. SCIF also has begun to occupy a three-building campus
in Pleasanton. By George Avalos, Contra Costa Times
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Everest Re Boosts Regular Quarterly Dividend
Bermuda holding company Everest Re Group, Ltd. announces that its board of directors has increased its regular quarterly dividend to $0.24 per share, effectively doubling its current quarterly distribution.
Workers' Comp Executive
Go to the Full Story...
State High Court to Hear Conflicting PD Cases
Although it has not provided a specific date, the California Supreme Court will hear two conflicting appeals court decisions on the apportionment of permanent disability benefits in light of the 2004 workers'
compensation system reforms. By Roberto Ceniceros, Business Insurance
Go to the Full Story...
Hawaii Treatment Payments to Rise
The Hawaii Department of Labor and Industrial Relations said it will start paying more to doctors and other medical providers who treat workers' compensation patients, starting Jan. 1. Rates for most treatments and
procedures will increase by as much as 30 percent over present rates. Pacific Business News (Hawaii)
Go to the Full Story...
Former LWCC Boss Succumbs to Cancer
The former head of the quasi-public Louisiana Workers Compensation Corp., Steve Cavanaugh, dies at age 55 after a brief battle with pancreatic cancer. 2theadvocate.com (Baton Rouge)
Go to the Full Story...
Walkout Slows Work at Carolina Slaughterhouse
Operations slow at a Smithfield Foods Inc. slaughtering plant in Tar Heel, N.C., after hundreds of mostly-Latino workers walk off the job to protest the firing of immigrants for allegedly providing false documents. A
union rep contends Smithfield has failed to address problems of sexual harassment and denial of workers compensation claims. By Ieva M. Augstums, AP via the State
Go to the Full Story...
Sheriff Gobble: 'Doing the Right Thing'
Bradley County, Tenn., Sheriff Bill Gobble vows to find a way to fully pay a sergeant who was shot twice in the line of duty and is on leave, receiving 2/3 of his pay through workers' compensation. Gobble says the
county mayor's office told him that he could not supplement the remaining third of the officer's regular salary through the department. Chattanoogan
Go to the Full Story...
Is Meth Exposure Behind Utah Cops' Sicknesses?
To get compensation for their medical bills, more than 50 Utah police must prove that direct exposure to methamphetamine and other drugs in the line of duty caused their illnesses. Most were exposed to the drugs in
narcotic busts in the 1980's and 1990's, and lacked specific training or protection. By Natalie Hale, Daily Utah Chronicle via Firehouse.com
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Washington L&I Fights Uphill Battle Regulating Construction Sites
Even before the influx of illegal labor in Washington state, the construction industry was difficult to regulate. Washington Labor & Industries officials say staffing is often insufficient and penalties are too weak to
ensure compliance with workplace safety, licensing and workers' compensation laws, but unions reportedly are stepping into the enforcement void. By Sanjay Bhatt, Seattle Times [With Photo]
Go to the Full Story...
Director of Washington L&I Stepping Down
Gary Weeks, director of the Washington State Department of Labor and Industries, which manages the state workers' compensation system, says he is resigning to become executive director of the Washington Health Care
Association. Tacoma Daily Index
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Virginia Senate Killed Comp Bill on Lawsuit Fears
In 2005, the Virginia House of Delegates passed a bill that would have limited workers' compensation benefits available to illegal immigrants, but the state senate killed the bill when it was warned that employers
could face private lawsuits from workers denied full benefits for an injury. By Greg Edwards, Richmond Times-Dispatch
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Editorial: Voinovich Mum on BWC Managed Care Mess
It's hardly a surprise that George Voinovich says he has nothing to say about the managed-care system set up for the Ohio Bureau of Workers' Compensation when he was governor in the early 1990s, because the tawdry
system's only true success has been in funneling $610,000 in political contributions from executives and associates of the managed-care firms, some of them former BWC officials, to mostly Republican state officials
and candidates. Toledo Blade
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Canadian Zodiac Boat Study Confirms the Obvious
An $85,000 study for the Canadian Coast Guard confirms that bouncing around heavy seas in hull inflatable "Zodiac" boats can cause back injuries. The study was ordered after a sailor won a workers' compensation claim
for hip problems he claimed were aggravated by the pounding and vibration absorbed by the crafts, which are often used for search and rescue. By Dean Beeby, Toronoto Star
Go to the Full Story...
Insurers Seek Another Rate Hike in North
Carolina
For the second straight year, workers' compensation insurers are seeking a double-digit increase in rates for North Carolina policyholders. Through the workers' compensation Division of the North Carolina Rate Bureau,
insurers are asking regulators to approve a 12.4 percent premium increase for companies except those deemed high risk, which would pay 10 percent more. By Lee Weisbecker, Business Journal of the Greater Triad Area
via San Jose/Silicon Valley Business Journal
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Oregon Workshops Target Job Safety
Oregon's Department of Consumer and Business Services, Occupational Safety and Health Division will be offering two free safety and health workshops in October designed for small businesses. Coos Bay Worldlink
Go to the Full Story...
New Insurer Fills Workers' Comp Niche in Pennsylvania Town
Closely-held Pennsylvania life insurer Synergy Comp Insurance Co. is setting up shop in the city of Sharon and will offer consulting services for workers' compensation. Its mission is to scrutinize claims history,
safety, work environment and health care in order to drive down comp costs. By Michael Roknick, the Herald (Sharon, Pa.)
Go to the Full Story...
San Diego Contractor Ordered to Pay $456,000 Restitution
A San Diego Superior Court judge orders the owner of a San Diego construction company to pay $456,061 in restitution to State Fund for workers' compensation insurance fraud. Workers' Comp Executive
Go to the Full Story...
San Francisco Contractor Charged with Workers' Comp Fraud
California Insurance Commissioner John Garamendi announced Wednesday that Martha P. O'Neill, 40, a San Francisco building trades company owner, is facing 49 felony counts for alleged workers' compensation insurance
and employment tax fraud. She is suspected of underreporting her employee payroll by more than $5.4 million. CBS5 (San Francisco)
Go to the Full Story...
WTC Rescue and Recovery Workers Cautiously Welcome New Laws
As the fifth anniversary of the September 11, 2001, terrorist attacks approaches, some Ground Zero recovery workers are asking if three recent bills signed by New York Gov. George Pataki will sufficiently address the
myriad physical and mental health issues they now face and the major obstacles to receiving compensation that remain. By Sushil Cheema, New York Press [With Photo]
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Former Postal Carrier Sentenced for Theft, Workers' Comp Fraud
A former U.S. postal carrier who stole 7,000 pieces of mail is sentenced to more than five years in federal prison and ordered to pay $30,000 in restitution after pleading guilty to mail theft and lying to obtain
workers' compensation. By Alex Branch, Fort Worth Star-Telegram
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Ohio Ballot Language Favors Labor, Lawyers' Position
The Ohio Ballot Board signs off on language in a November ballot issue that would prevent certain state legislature-approved changes to Ohio's workers' compensation law from taking effect. Labor interests and lawyers
will be pleased with the wording, as it may make the outcome they seek more likely. By John McCarthy, AP via Akron Beacon Journal
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Noe Absorbs Major Blow as Judge Keeps Nearly All Charges
Indicted political fundraiser Tom Noe, who is charged with looting at least $1 million from the Ohio Bureau of Workers' Compensation rare coin funds that he managed, was dealt a severe blow yesterday when a judge
rejected almost every attempt to cut down the criminal charges against him. By Mike Wilkinson, Toledo Blade
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Unions Charge Michigan City with Bungling Workers' Comp Cases
City officials in Battle Creek, Mich., are having to defend themselves against city employee union allegations that they not only mishandled a number of workers' compensation claims by police in recent years, but have
abused the system. By Andy Rathbun, Battle Creek Enquirer [With Photos]
Go to the Full Story...
Opposition Goes to Bat for Western Australia Police
The Western Australian liberal opposition introduces an amendment to the Police Act and calls on the state government to provide police officers with the same workers' compensation benefits that other workers receive.
Yahoo! 7News
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EIG Mutual to Convert to Publicly Traded Stock Company
Workers' compensation insurer EIG Mutual Holding Co. intends to convert from a mutual insurance holding company to a publicly-traded stock company. Workers' Comp Executive
Go to the Full Story...
Committee Emasculates SCIF
The Senate Banking, Finance and Insurance Committee today passed an Assembly bill with amendments that strip State Compensation Insurance Fund of its enhanced investment authority and give the governor
greater leeway to remove the State Fund president. Jim Tudor, acting president of the quasi-governmental insurer, told the committee today that SCIF would respond to the amendments by dropping its lawsuit against the
California Department of Insurance, a case State Fund has spent $1.8 million litigating.
Sen Jackie Speier (D-San Mateo) introduced the amendments to AB 2125 (Vargas D-Chula Vista), the Department's clean up bill that subjects SCIF to many of the same requirements as commercial workers'
comp carriers, short of allowing the insurance commissioner to take it over. The bill will be amended with new amendments on the Senate Floor tomorrow.
Speier is a relentless champion of sunshine laws and accountability for the state-created entity. Her amendments further eviscerate the ability of SCIF management to flaunt Risk-Based Capital (RBC)
laws.
The proposed amendments agreed to by Speier, Governor Schwarzenegger and Insurance Commissioner John Garamendi strip investment language from the bill that would have allowed SCIF to invest in corporate
bonds. The amendments also authorize the governor to remove the State Fund president if SCIF ever reaches an Authorized Control Level Event or worse, under RBC laws. In this event, the governor would have the
right to appoint a recovery administrator, while State Fund's board of directors becomes an advisory body.
Once the insurance commissioner determines that SCIF is no longer in financial trouble, the board can regain control of SCIF. The insurer actually reached RBC level three in 2002, an event that with any
other California workers' compensation carrier would have triggered a conservation action by the Department. SCIF's litigation challenged the commissioner's authority to seize the company under current laws.
New Employer Member Vows Active Presence on Bureau Board
Public members appointed to the Workers' Compensation Insurance Rating Bureau of California governing committee traditionally have been a quiet bunch, but the latest employer member appointed by the California
Department of Insurance promises to play an active role. He says he'll show up for all meetings. Get the details on the latest appointment, his connections and his plans, in the current print edition of Workers'
Comp Executive.
Go to the Full Story...
Majestic Plants Its Seeds in Arizona
Arizona was once fertile ground for California specialty carriers. Now Majestic Insurance is taking its successful California model on the road and blazing into the desert. Find out what its strategy is and what it
hopes to accomplish, all in the current print edition of Workers' Comp Executive
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Bureau Proposes Lowering Threshold for Employer Audits
Workers' Compensation Insurance Rating Bureau of California is scrambling to adjust its audit requirements, and its latest changes to physical audit thresholds may create additional work for some carriers. Get the
skinny on the latest changes and what concerns carriers have, in the current print edition of Workers' Comp Executive.
Go to the Full Story...
ICW Group Plucks Yet Another Executive from Zenith's Branches
For rapidly growing California workers' comp carriers, underwriting talent is a must, and ICW Group knows where to find it. Who is the latest acquisition and what are his plans for this burgeoning carrier? Is the
talent pool shrinking and what kind of ripples is it causing in the industry? Find out in the latest print edition of Workers' Comp Executive.
Go to the Full Story...
Lobbyists Expect Drill on Workers' Comp but No Knock-Down, Drag-Out Fight
There will be a knock-down, drag-out fight over something in the waning hours of the California legislature, but will it be a workers' comp bill that generates punches? Plenty of workers' comp is still on the table,
and in an election year anything is possible. Find out which California workers' comp bills are still viable and where the industry and employers stand, in the current print edition of Workers' Comp Executive.
Go to the Full Story...
Political Deal Confirms SCIF's Litigation Loss to Insurance Department
Proposed legislative language might finally end the acrimonious legal battle between State Compensation Insurance Fund and the California Department of Insurance. But it's not final yet. Is this the best SCIF could
hope for? What legislative glitches still need to be worked out and what provisions are causing concern for the industry? Find out in the current print edition of Workers' Comp Executive.
Go to the Full Story...
California Workers' Comp Market Too Soft for New Carriers
Low rates and low costs make for a great California workers' comp market, but are new carriers and capital starting to sour? What might be keeping them away? Which carriers are sticking their toes in and can they
still make money in this market? Find out in the current print edition of Workers' Comp Executive.
Go to the Full Story...
State Fund Offers Credit Extension to Policyholders Affected by Heat Wave
The California State Compensation Insurance Fund has announced that it will extend credit to policyholders who have suffered a financial loss or business disruption caused by the recent heat wave. Workers' Comp
Executive
Go to the Full Story...
Critics Say Injured Workers Falling Through the Cracks
Two years after California's sweeping workers' compensation reforms, critics, including some doctors, say the system is leaving too many injured workers in the lurch without the treatment or benefits they need. The
American Insurance Association counters that the reforms have brought needed "checks and balances" into the system that was once out of control. By George Avalos, Contra Costa Times [With Photo]
Go to the Full Story...
Virginia Appeals Court Rules Against Birth-Injury Program and WCC
A ruling by the Virginia Court of Appeals against the state's Workers' Compensation Commission and birth-injury program, which blocks malpractice suits involving who suffered spinal cord or brain damage from oxygen
loss at birth, could significantly raise the legal costs of state attempts to oppose cases in the program. The court ruled that the state denied legal fees to lawyers challenging the birth-injury program and refused
to include interest when ordered to pay. By Bill McElway, Richmond Times-Dispatch
Go to the Full Story...
South Carolina Senate Opens System Overhaul Hearings
South Carolina Gov. Mark Sanford, the state Chamber of Commerce, business leaders and insurers have made changing the state's workers' compensation system a top legislative priority this year. On Tuesday, the state
Senate took a major step in that direction by opening hearings focusing on problems in the system. By AP via the State (Columbia, S.C.)
Go to the Full Story...
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SCIF Management "Arrogant" Says Speier
"Either they have too much money to spend, or they have something to hide," says Jackie Speier about the management of the State Compensation Insurance Fund (SCIF). Speier lambasted management for
hiring a contract lobbyist to kill her good government bill. SB 1452 will, if passed, subject SCIF to the same standards as other state and publicly created entities. She went on to say hiring a lobbyist is deceitful
and in violation of the public trust.
State Fund's lobbying came to light in a recent Workers' Comp Executive Flash Report.
SCIF Management has been aggressively trying to exempt itself from review by the State Auditor testifying that it is a unique public entity. The bill was originated the Office of the State Auditor
because it felt it needed to obtain affirmative legislative relief in order to do its job.
State Fund's present management has tangled with other state agencies including the California Department of Insurance. It is part of the Division of Industrial Relations which is subject to audit.
The bill would make SCIF subject to the same open government standards applied to all other state agencies.
"It would be preposterous in my mind to not have the authority to audit an entity created by the state," Speier said in a news conference, as State Fund's lobbyist George Miller of Lang, Hansen,
O'Malley, and Miller looked on dejectedly.
"The arrogance that a state created entity that is peopled with state employees would not be subject to state audit review is the height of chutzpa," she said. The remark appears to be aimed squarely at
interim State Fund president Jim Tudor who is a candidate for the permanent position. The position is soon to be filled with a candidate choosen by a Governing Board mostly appointed by Governor Arnold
Schwarzenegger. Schwarzenegger is known as a proponent of open government.
Today SB 1452 passed out of the Assembly Appropriations Committee and was placed on the consent calendar which means it goes directly to the Assembly Floor. Miller told Workers' Comp Executive that he
did not intend to challenge the consent status.
"So why are we holding this news conference? said Speier. "It's because State Fund has been so aggressive. They've hired an outside lobbyist to kill the bill and have paid him at least $178, 000," she
said.
SCIF maintains it only wants an amendment to keep information confidential it deems would cause a market disruption. But hired lobbyist also suggested that SCIF be exempt from the State Auditor with
exception of information gleaned from whistleblower suits. Both of these suggestions are management attempts to legislate subterfuge and would serve only to exempt SCIF from all state audit requirements.
"I'm deeply troubled that a state created entity would hire a lobbyist to restrict auditing questions," Speier said.
As State Auditor Elaine Howle testified during the conference, that the state auditor already has the ability to parse out proprietary information and has in fact audited other publicly created entities
including the Ed Fund which is part of the Student Aid Commission.
"My office has provided information on other publicly created entities, and there was proprietary information involved and we were able to aggregate it out," Howle said.
Miller tells Executive Workers' Comp that SCIF is only concerned about protecting confidential information such as rate making, and denies that he was hired to "kill" any of Senator Speier's bills. The
State Auditor does not audit process but rather results and effectiveness.
"This is much ado about nothing," he said.
Senator Speier doesn't think so and she questions the agenda of an agency that's supposed to be serving the public trust by acting as the California workers' comp carrier of last resort for employers
and injured workers.
SCIF Tries To Avoid Transparency Again
State Compensation Insurance Fund (SCIF) is trying to kill a good-government bill that affirmatively permits the State Auditor to audit State Fund! State Fund has been so recalcitrant over the past
several years that the Auditor's office has had to go to the legislature and ask for an affirmative bill to permit its audits. And SCIF is fighting it all the way home.
It's the same old excuse from the embattled management of SCIF: that it is entitled to confidentiality. The State Auditor does not do insurance regulation-type audits but rather audits of how money is
spent on more mundane items such as executive expense vouchers and contracts for services. The confidentiality issue is nothing less than a smokescreen. The legislation will bring the possibility of some much-needed
transparency to State Fund's general and otherwise nonconfidential operations, according to the bill's sponsor.
SB 1452, authored by Sen. Jackie Speier (D-San Mateo), would give teeth to the California State Auditor and specifically subject SCIF to the same audit requirements as other state agencies. SCIF has
refused such audits in the past, citing its regulation by the Department of Insurance and confidentiality, despite its being part of the Division of Industrial Relations, which is subject to audit.
But it seems these audit requirements are just too much for SCIF's interim president Jim Tudor, who has decided he should be allowed to pick and dictate the terms of SCIF audits. This is a right not
bestowed by the legislature upon other state agencies.
Tudor has ordered State Fund Government Relations Officer Patricia Quintana to get the bill killed or set aside for this year. There have been several strategy discussions on the topic, according to
sources on the 16th floor. Tudor likely is counting on union help to influence Democrats on Assembly Appropriations, the next place the bill will be heard.
State Fund's hired and paid lobbyists Lang Hansen O'Malley & Miller also are known to be working behind the scenes to tank the bill. SCIF has paid these guys nearly $150,000 of policyholders' funds so
far this session, and for what? To keep potential audit results secret from the legislature, from its own board, and from its policyholders. In fact, SCIF wants to prevent the audits from happening at all, it would
seem.
SCIF's lobbyists testified before the Assembly Business & Professions Committee that a publicly released audit of SCIF would be potentially "disruptive to the marketplace."
But the facts are quite different: The State Auditor already has statutory responsibility to keep proprietary information confidential. That would include certain aspects of risk-based capital (RBC)
reports, and other so-called market-disruptive facts.
Unbelievably, and in what appeared to be near desperation, SCIF then suggested that the Joint Legislative Audit Committee review the audit first to determine if its contents would be disruptive and then
release it to the public. Senate staffers refer to this argument with a combination of laughter and just plain astonishment. They call it "astounding."
Experienced legislative hands know these tricks – don't publicly challenge the bill on its face, just complicate it until it dies a natural death. Then it never appears as though you acted in a
self-serving fashion.
SCIF went on. It also expressed concern that some of the audit requests might be generated by the Little Hoover Commission, thus posing a competitive dilemma. In this way, SCIF has accused Little
Hoover Commission Vice Chairman Stanley Zax, CEO of Zenith National Insurance Company, of using his position to gain competitive knowledge. There has never been an indication of this; those who know Zax say he's far
too ethical for this sort of game. Zax has been critical of SCIF's business practices in the past and SCIF seems to be grasping at straws.
All of this folderol comes from a SCIF management that has been unable to decrease market share significantly when measured either by number of policyholders or percentage of total market share. Down to
38 percent, its share is nearly double the 20 percent it should be near.
The Association of California Insurance Companies withdrew its opposition to the bill once language that called the Workers' Compensation Insurance Rating Bureau a public entity was removed. ACIC is now
neutral on SB 1452.
The Assembly Insurance Committee wisely passed the bill and rejected SCIF's amendments. SB 1452 now moves to Assembly Appropriations for a hearing on August 9. SCIF is the only official opposition.
Compline, on behalf of its members, has taken a position in favor. Compline is a sister company of Workers' Comp Executive.
Senate staffers say SCIF's arguments are not convincing, and its lobbyists have not proposed any reasonable amendments since the policy committee hearing.
According to the lead Senate consultant on the bill, Richard Steffen, SCIF had proposed that the State Auditor be allowed to perform audits only in connection with whistleblower complaints by its
employees. But this proposal is designed by SCIF management to seriously water down the legislature's audit and oversight authority, something the legislature is clearly unwilling to give up. And how many
whistleblower complaints have there been, anyway?
SCIF has said it's not subject to the full authority of the Insurance Commissioner on a number of occasions. Now, it would appear, State Fund management is trying to find ways not to be subject to the
legislature.
The Assembly Appropriations Committee meets this week. If we act today, together, to counteract this continued recalcitrance by State Fund management, we have a chance! There is still time left to make
our voices heard.
We ask—we urge—you to forward this e-mail showing your support of SB 1452 to Judy Chu, Chairperson; Sharon Runner, Vice Chair; and Ronald Calderon, member. Cut and paste their email addresses as
follows: Assembly.chu@asm.ca.gov Assemblymember.Runner@assembly.ca.gov
Assemblymember.ron.calderon@assembly.ca.gov
You can also register your support by emailing both Chuck Nicol, the lead consultant in the Appropriations Committee and Richard Steffen, the lead consultant on SB 1452 for Senator Speier. Their emails
are as follows Chuck.Nicol@asm.ca.gov and Richard.Steffen@SEN.CA.GOV
Tips to Make Most of Workers' Comp Reforms
Diana B. Henderson, president of The Henderson Group, a Newport Beach workers' compensation consulting firm, offers tips to employers to help them improve their workers' comp bottom line within the framework of
California's system overhaul. Orange County Register
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Empire State Rejects Insurers' Request for Rate Boost
New York State Insurance Superintendent Howard Mills rejects a request by insurance companies to increase workers' compensation rates by 7.5 percent, contending that it is unwarranted in light of the
state-regulated industry's weak anti-fraud efforts. The state granted a 5-percent increase last year and a 1.7 percent increase in 2003.
Go to the full story By AP via Newsday
Go to the full story in the Albany Business Journal
Mold Forces Bay Area Police Station to Relocate
The discovery of mold in the 57-year-old Richmond police station means it must temporarily relocate its 200 staff before the rainy season. The city ordered testing after 28 employees in four months filed
workers' compensation claims citing mold and asbestos-related illnesses ranging from chronic sniffles to skin infections. By John Geluardi, Contra Costa Times
Go to the Full Story...
Empire State Manufacturers Demand Lower Comp, Energy Costs
A report by New York's Assembly Republican Manufacturing Task Force finds that manufacturers say they need lower energy and workers' compensation costs in order to be more efficient and profitable. By
Charley Hannagan, Syracuse Post-Standard
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Ohio Workers' Comp Payments Hold Steady
Workers' compensation payments to injured Ohioans and medical providers held steady into 2004 from 2003, but the amount workers set aside for coverage declined for the first time in four years, concludes a
study by the nonprofit research group National Academy of Social Insurance. Ohio's decline was above the national average at 3 cents per $100 drop. Dayton Business Journal
Go to the Full Story...
West Virginia Employers' Policy Protests Get Results
More than 80 percent of the West Virginia employers who disputed their most recent workers' compensation insurance statements have succeeded in getting changes made to their policies, according to BrickStreet
Mutual Insurance Company. By George Hohmann, Charleston Daily Mail
Go to the Full Story...
More from the Mountain State: Agents Tag Delinquent Shops
West Virginia Insurance Commission agents make their way around the city of Charleston, posting 147 yellow signs on the doors of businesses that are operating without workers' compensation insurance. "The
notice also says the employer is now personally liable for any cost associated with an employee of theirs who is hurt while on the job," says Insurance Commissioner Jane Cline. By George Hohmann, Charleston Daily
Mail
Go to the Full Story...
Teacher Fired over Affair with Student Gets Workers' Comp
A Sydney teacher who lost his job for breaching student-teacher trust in connection with his relationship with a 15-year-old student is entitled to more than $21,000 in worker's compensation—although the New
South Wales' Department of Education is looking at how to overturn the decision of the Workers' Compensation Commission. The 54-year-old man claimed that the department's handling of the inquiry left him clinically
depressed and affected his ability to work. Australian
Go to the Full Story...
New Mexico City Experiments with Safety Incentive Program
City councilors in Las Vegas, N.M. last week approved a safety incentive program for employees aimed at reducing workers' compensation costs. By AP via KOB-TV (Albuquerque)
Go to the Full Story...
Texas Governor to Return Gift from Felon He Says He Doesn't Know
Texas Gov. Rick Perry says he doesn't know why a felon from New York who was sentenced to 27 months in federal prison for creating sham companies to get workers' compensation insurance from California state
funds for employee-leasing companies contributed $2,500 to his re-election fund, but the campaign is returning the money. By Wayne Slater, Dallas Morning News
Go to the Full Story...
Mechanic Wins Suit for Injury Suffered at WCB Treatment Center
A mechanic who seriously injured his tailbone when he slipped and fell on snow on the driveway of a Workers' Compensation Board treatment center in Edmonton, where he was taking return-to-work programs after an
eye injury, wins his damage suit against the WCB. By Tony Blais, Edmonton Sun
Go to the Full Story...
WorkSafeBC Plans to Cut Some Employers' Contributions
Flush investment returns and stable injury rates could mean cuts as high as 20 percent in employer contribution rates for workers' compensation in British Columbia. WorkSafeBC says the cuts are possible because
its investment portfolio has generated gains of 12.5 percent, 10.3 percent and 13.4 percent over the past three years. By Michael Kane, Vancouver Sun
Go to the Full Story...
Buffett Swallows Up Aaris And Acca
Continuing to bet big on the California workers' comp market, billionaire Warren Buffett, owner of Berkshire Hathaway is purchasing workers' comp claims and underwriting management
companies American All-Risk Insurance Services (AARIS) and American Commercial Claim Administrators (ACCA). The companies are being acquired by Columbia Insurance Company, a Berkshire Hathaway subsidiary, according to
a news release.
Both AARIS and ACCA are wholly-owned subsidiaries of Acacia Pacific Holdings headquartered in San Francisco. The terms of the transaction were not disclosed.
National Liability and Fire Insurance Company, one of five Berkshire companies writing workers' comp in California has been writing through AARIS since 1994. Mr. Buffett has been
increasing his share of the California workers' comp market since the beginning of the year. In February, Berkshire Hathaway purchased San Francisco-based Applied Underwriters, the parent company of California
Insurance Company.
According to Moody's Investment Service, the Berkshire Hathaway companies wrote $523 million in direct premium breaking into the California workers' comp top 10.
Berkshire Hathaway's aggressive pricing in the California workers' comp market, and its lack of an all-California infrastructure has some industry experts concerned about its
staying power. By purchasing two well established workers' comp companies that handle California underwriting, Mr. Buffett may be signaling his intent to stay in it for the long haul.
Fitch Affirms Everest Re's Ratings
Citing the company's "diversified underwriting portfolio in primary insurance and reinsurance markets, and favorable operating performance and good capital position," Fitch Ratings affirms all ratings related to
Everest Re Group, Ltd., including the A+ issuer default rating and "A" senior debt rating of intermediate holding company, Everest Reinsurance Holdings, Inc. Workers' Comp Executive
Go to the Full Story...
Treasurer Hopeful Blasts Ohio Workers' Comp Bureau
The Ohio Bureau of Workers' compensation unfairly costs businesses money as a result of "foolish and unsupervised investments" that are politically-motivated, according to candidate for state treasurer Richard
Cordray, a Democrat. By Alan Johnson, Columbus Dispatch
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Washington Fraud Detection Unit Saves State Millions
A revamped fraud detection unit in the Washington Department of Labor and Industries' workers' compensation program is on track to collect more than $130 million in overpayments for fiscal year 2006, says fraud and
compliance manager Carl Hammersburg, who recently won the Governor's Award for Leadership in Management. The unit's work also has resulted in a 14 percent increase in worker investigations. By Ingrid Stegemoeller,
the Olympian (Olympia, Wash.) [With Photo]
Go to the Full Story...
Alberta WCB Bites Back at Dog Owner
The Alberta Workers Compensation Board and a Winnipeg animal control officer are suing a local dog owner over a 2004 attack that occurred when the officer went to the dog owner's home to legally seize it. The WCB
wants compensation for a claim it paid out to the officer as a result of his alleged injuries.
Go to the full story by Jeff Keele, CJOB News (Winnipeg) [With Audio]
Go to the full story in the Winnipeg Sun
Quarter of Mountain State Employers Delinquent: BrickStreet
About one-fourth of all employers in West Virginia failed to pay workers' compensation premiums that were due last week, according to a BrickStreet Mutual Insurance Company spokesman. The agency says the delinquent
employers have until the end of month before their policies are canceled.
Go to the full story by George Hohmann, Charleston Daily Mail
Go to the full story by Fred Pace, Beckley Register-Herald
Colorado Appeals Court Countenances Horseplay
The Colorado Court of Appeals rules that a bakery worker who experienced wrist and hernia injuries after slipping while pretending to kick a coworker can collect workers' compensation. The court stated that employees who
engage in horseplay may be eligible for workers' comp even if such behavior is uncommon or forbidden in the workplace. By Howard Pankratz, Denver Post
Go to the Full Story...
W.V. Justice: Miner's Comp Denial Worst Decision in a
Decade
A West Virginia State Supreme Court justice says his colleagues made the worst ruling in his 10 years on the bench when they denied compensation to a man who claimed he suffered emotional distress after spending 90
minutes lost in a smoky coal mine. The worker initially sought workers' compensation before learning that state law does not cover "nonphysical" injuries. By Jake Stump, Charleston Daily Mail
Go to the Full Story...
Montana Workers' Comp Judge Keeps Case Alive
A Montana Workers' Compensation Court judge says he will reconsider his December ruling against four permanently disabled workers who are suing a private insurer, arguing that their workers' comp benefits should
continue into retirement. If successful, the lawsuit could increase payouts to such workers by tens of millions of dollars. By Mike Dennison, Billings Gazette
Go to the Full Story...
Former Claims Director for Oklahoma Insurer Allegedly
Pressured Doctor
In Oklahoma City, a former claims director of CompSource Oklahoma, an agency that provides workers compensation insurance for public employees, stands accused of pressuring a doctor to withdraw an unfavorable medical
report in a workers' compensation case. By AP via KTEN-TV (Denison, Texas)
Go to the Full Story...
Caught on Tape: Ohio Workers' Comp Cheats
"I think they actually start off thinking (that) they're going to slip under the radar," says an Ohio Bureau of Workers' Compensation official, about purportedly injured workers who fraudulently collect benefits but
continue to work at other jobs. Surveillance video often catches them in the act and reportedly has saved the state at least $1 billion. NBC4i-TV (Columbus) [With Video]
Go to the Full Story...
Feds Want BWC Scandal Figures to Cough Up Assets
Federal prosecutors are seeking forfeiture of more than $2.5 million and a $745,000 Florida Keys condo and boat dock from two brokers charged with bribing former Ohio Bureau of Workers' Compensation chief financial
officer Terry Gasper in exchange for state investment business. By T.C. Brown, Cleveland Plain Dealer
Go to the Full Story...
Workers' Comp PPO for Buffalo Region Formed
A preferred provider organization specifically for workers' compensation cases, Lifetime Health BusinessWorks, is being formed for the Buffalo, N.Y. region. Officials credit the managed care program with slashing
employers' medical and indemnity costs by almost half. Business First of Buffalo
Go to the Full Story...
N.Y. Group Continues Blitz Against Anti-Business Laws
Business coalition Unshackle Upstate recently succeeded in one of its efforts to rid the region of laws it contends unfairly hobble business: the Workers' Compensation Improvement Act has been introduced in the
Assembly and Senate. The bill, if passed, would reduce costs and liability for employers and increase benefits for injured workers. By Annemarie Kropf, Press & Sun Bulletin (Binghamton, N.Y.)
Go to the Full Story...
Land of Lincoln Pol to Host Seminar on Fraud Protection
Illinois State Rep. Kurt Granberg, a Democrat, will host a seminar tomorrow in the Downstate city of Salem, aimed at educating business leaders on the state's new Workers' Compensation Fraud Unit. Salem
Times-Commoner
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Former Labor Agency
Undersecretary Joins Governor's Staff
It's been almost three years since Governor Schwarzenegger took office and now some of his top staffers are moving on, but equally qualified staffers are moving in, industry experts say. Find out about the latest
change in the horseshoe by clicking here.
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Is the End of Drug Repackaging in
Sight?
Are dispensing docs running out of time? Is a regulation closing a fee schedule loophole on medications dispensed out of doctors' offices getting closer to reality or is it all smoke and no fire? Find out
exactly where things stand, now in the current print edition of Workers' Comp Executive.
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Steve Poizner--the Candidate Is
Candid In An Exclusive Interview
Republican nominee for insurance commissioner Steve Poizner has a vision and a definite idea of what that office should do. What does he think is the biggest challenge the Department faces regarding workers'
compensation? Where does he stand on State Fund? Should rates be lower? What does he think about his opponent and does he have the grassroots support to win? Find out in this exclusive interview in the current print
edition of Workers' Comp Executive.
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Employers Insurance Group Focuses on
Small to Grow
Employers Compensation Insurance Company counts on the business that other carriers are not so interested in, even in a soft market, and it seems to work. Find out all about its strategy and if it's appointing
producers, now in the current print edition of Workers' Comp Executive.
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Majestic Builds Toward A- Rating
Majestic Insurance Company is proving both its worth and the profitability of the California workers' compensation market. Find out what the rating agencies say about this niche player, all in the current print
edition of Workers' Comp Executive.
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July Rate Decreases
The Commissioner has made his announcement and rate filings are pouring in. This article, available to premium subscribers, lists which carriers filed for what. Find out which factors contribute to what's in
store for January, all in the current print edition of Workers' Comp Executive.
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Publius on the Elections
Publius brings reality to the face of what happened in the Senate and Assembly primaries. Read in this insightful piece how the applicants' attorneys fared and what it means for the future of California
workers' comp. Click here to read this free article.
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Delaware Compromise Bill Said to
Satisfy No One
A 70-plus-page bill in the Delaware Senate that would overhaul the state's embattled workers' compensation system may be a compromise that will satisfy neither cost-conscious business interests nor advocates
for injured workers. By Patrick Jackson, News Journal (Wilmington, Del.) [With Photos]
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Manchin Urges Businesses to Reinvest
Savings
West Virginia Gov. Joe Manchin urges employers to invest the $55 million they are expected to save from a workers' compensation rate cut back into the state. He estimated that employers have seen costs drop a
total of $130 million since the state began privatizing its workers' comp system, which BrickStreet Mutual Insurance Co. now runs. By Lawrence Messina, AP via Huntington Herald-Dispatch
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Commentary: Rate Cut Is Good News for
All
The announcement Monday of a workers' compensation rate cut by West Virginia Insurance Commissioner Jane Cline is good news not only for state businesses, but also for all West Virginians as the climate of
economic development continues to improve. Bluefield (W.V.) Daily Telegraph
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Injured Worker Alleges Retaliatory
Discharge in Notorious County
An Illinois forklift operator files a wrongful termination in St. Clair County, claiming he was fired for filing a workers' compensation claim and that the company president told him that, as a result of his
injury claim, he would have to lift at least 50 pounds before returning to work. By Ann Knef, St. Clair Record
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Sunshine State Hurricane Fund Planning Bond Sale
The Florida Hurricane Catastrophe Fund will sell up to $1.5 billion in bonds after having to cover losses from the eight hurricanes that hit the Sunshine State in the past two years. They will be repaid through
a ten-year, 1-percent assessment on all property and casualty insurance policies held by Floridians; workers' compensation and medical malpractice policies are exempt. By Beatrice E. Garcia, Miami Herald
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Medical Expenses Milk Higher Comp Costs in Dairy State
Rising medical costs are driving an increase in workers' compensation costs in Wisconsin, according to a new study by the Massachusetts-based Workers Compensation Research Institute. Average costs per comp
claim grew 13 percent for claims evaluated in mid-2004 with 12 months' maturity, although the average cost per claim in Wisconsin was among the lowest of the 13 states in the study. Business Journal of Milwaukee
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Rhody Supremes to Decide on Removal of Beacon Board Members
The Rhode Island Supreme Court will consider next week whether Gov. Donald Carcieri can remove two members of the board of Beacon Mutual Insurance Company, the state's dominant workers' compensation insurer.
Carcieri attempted to fire the men in the wake of an audit that revealed mismanagement and favoritism in pricing. By AP via WPRI (Providence)
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Commentary: Beacon Wants It Both Ways
The troubles at Beacon Mutual Beacon's blowup are the result of a fight it picked with the Rhode Island Governor's Office: Beacon wants to retain its special status as a state fund, but also to be free to
operate like any multi-state property and casualty insurer. By Peter Rousmaniere, Risk & Insurance
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Former Ohio BWC Finance Boss Charged with Racketeering, Ethics Violations
Federal and state prosecutors indict Terrence W. Gasper, the 59-year-old former chief financial officer for the Ohio Bureau of Worker' Compensation, on charges of trading investment opportunities for money,
college tuition and stays at a Florida condominium. By Mark Niquette, Columbus Dispatch [With Photo]
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Empire State Legislators Urged to Pass WTC-Worker Benefits Law
In New York, proponents of a bill that would provide workers' compensation benefits for people who helped in World Trade Center site cleanup efforts are urging support from their colleagues. NY1 (New York
City) [With Photo]
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Delays, Denials Frustrate Ailing Ground Zero Comp Claimants
According to Jon Sullivan, spokesman for the New York State Workers' Compensation Board, Ground Zero-related claims have been denied at higher rates than other claims, with 28 percent of nearly 11,000 World
Trade Center injury claims controverted, compared with 17 percent of all other claims. "I don't understand why they are torturing me," says one worker who has endured nine hearings and two appeals by insurers, but has
received nothing. By Ridgley Ochs, Newsday
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BrickStreet to Offer Safety Training
BrickStreet Insurance Co., West Virginia's private workers' compensation insurer that took over for the state-run system on January 1 as the state's sole carrier, plans to offer a series of free safety training
sessions to policyholders this summer. Charleston Daily Mail
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Virginia Birth Injury Program Appeals Paraplegic Boy's Benefits
A Virginia state program for children injured at birth is asking the state Supreme Court to overturn decisions during the past two years that awarded a paraplegic four-year-old boy lifelong medical care. The
program and attorney general's office argue that the Workers' Compensation Commission and state appeals court repeatedly erred in ruling that he qualifies for benefits. By Bill McKelway, Richmond Times-Dispatch
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CRM Writes 6 Self Insured Programs
Workers' Comp Executive ran a story in its May 24 print edition in which a regrettable and unfortunate error appeared. A story entitled "Low Rates Slow Self-Insured Groups," quoted Jamie
Meyers, interim manager of the Office of Self Insured Plans, as saying that Preferred Auto Dealers Self Insurance Program had its license to group self-insure revoked for not releasing its coverage. We got it wrong.
In fact, she said it was Auto Dealers Access, and the wrong name was published. Workers' Comp Executive apologizes to it readers for getting a fact wrong, and to both the subject of the story and Ms. Meyers.
Preferred Auto Dealers is an active self-insured group licensed to do business in California. It is managed by Compensation Risk Managers, LLC (CRM), a publicly traded company. It trades on NASDAQ under
the symbol CRMH. It manages six workers' compensation group self insurance programs in California representing over 334 clients and $68,000,000 in member contributions. It specializes in individual account
underwriting and risk management.
Besides auto dealers, its California programs inlcude vintners, banks, artisan contractors, plastic manufacturers, and healthcare facilities. All CRM programs are covered by "A" rated excess insurance
carriers that provide statutory coverage. Aggregate coverage is also available.
Its website www.trustcrm.com has more information.
Eligibility requirements inlcude five years of currently valued loss and payroll data and state required financial statements. Each program has specific underwriting guidelines which dictate maximum
allowable X-Mods and minimum premium thresholds.
CRM also tracks the financials of the programs on a monthly basis. Quarterly, the financials are presented to a member based Board of trustees for each program. All programs are audited annually by
independent certified accountants and actuaries. State regulations only require this every two years. CRM says it exceeds the standard.
The company also provides personalized loss control services with its own staff of full time professionals. As California regulations require, claims services are provided by a network of Third Party
Administrators. And, it says, its full time in-house claims professionals liaise between client, broker and the TPA. It is aggressive about rooting out fraud and protecting its member employers.
CRM writes through its 95 brokers in California and is accepting new brokers. Interested brokers may contact Susan Chea at 877-276-4747.
Garamendi Proposes 16.4 Percent Decrease
California Insurance Commissioner Garamendi is recommending a 16.4 percent decrease in pure premium rates for California workers' comp policies renewing and incepting on July 1. In making this decision, the
Commissioner is accepting the Workers' Compensation Insurance Rating Bureau's recommendation as opposed to his own actuaries who recommended a higher decrease.
The Bureau recommended a 16.4 percent decrease in April. The Department's actuaries recommended an 18.5 percent decrease. The Commissioner's recommendation is advisory only.
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