Sunday, February 23, 2014

Pros and Cons of Using a PEO for Workers Comp

I've seen a couple of online items recently on using PEOs for Workers Comp coverage. They reminded me that I addressed this issue a little while back, and some readers might not have seen that.

The bottom line remains that there can be advantages, but lax (more like non-existent) regulation of the industry also creates potential problems for employers. Take a look, and let me know your thoughts and experiences.

Tuesday, February 18, 2014

Delaware Lt. Gov No Fan of Rating Bureau

Delaware's Lieutenant Governor, Matt Denn, has criticized Delaware's Workers Comp Rating Bureau for treating the rate making process "as the equivalent of a rug bazaar", proposing excessive rate increases with the expectation that it will be negotiated down.

Treating Workers Comp rates as something of a political football is hardly confined to Delaware, of course. But one would hope that rating bureaus would take something more of a factual, actuarial approach to Workers Comp rates. Of course, Lt. Gov. Denn probably isn't a disinterested observer of the process. He is, of course, part of the political process. And he was speaking to his state's Bar Association, themselves not impartial observers to a considerable extent. And so it goes.

Change in AZ Bad Faith?

A new bill introduced in Arizona would move bad faith actions against insurers for denying Workers Comp claims from the courts (and thus away from juries) to the state's Industrial Commission.

Not sure how good or bad this idea might be. Anything that makes it more difficult for injured workers to get justice would be bad, but there are also a lot of fraudulent or exaggerated claims in the Workers Comp world. Comments from readers always welcomed.

Wednesday, February 12, 2014

Good News For An Alaska Client

Got a nice email today from a client in Alaska. We had helped them appeal a recent change in Workers Comp classification code that had been made by NCCI. The change in classification resulted in a a tend-fold increase in rates and premium, an increase so severe that it threatened the continued viability of the business.

Our review found that the classification assigned by NCCI was incorrect and excessive, given the actual nature of the work done by the client's workers, and so we wrote a detailed report explaining why a much less expensive class was really the correct and appropriate one. We also provided testimony via phone at the appeal hearing. And ultimately the appeal board in Alaska agreed and overruled NCCI, assigning the much less expensive classification we had advocated for.

It's always gratifying when our efforts can make a difference and help a business avoid being crushed by excessive Workers Compensation insurance premiums.