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Alberta
In addition to his extensive knowledge of WCB-Alberta operations, and insight into the challenges faced by the workers’ compensation system, Kerr brings 11 years senior management experience to this appointment. Since joining the WCB, Kerr has had executive responsibility for key areas of the business, including the Customer Contact Centre, Medical Services, Strategic Planning, and Communications. He was previously the Vice-President of Customer Service and Disability Management. Prior to joining the WCB, Kerr was the President and CEO of Payment Systems Corporation, an IBM subsidiary. In addition to his role at the WCB, he is currently the Chair of the Board of Directors for the Edmonton Corporate Challenge, and also serves on the University of Alberta Alumni Council. He has a Master of Business Administration from the U of A. “The WCB is a good organization, and it’s getting better thanks to the dedication and commitment of its people. I’m looking forward to leading the organization in meeting the challenges and opportunities it faces now, and in the future,” said Kerr. The WCB announced the opening in April of the Millard Health Centre near the Edmonton Airport. The new facility, which provides physical, social, psychological, vocational and other rehabilitative services to injured workers, will house 280 staff and treat an average of 5,000 Albertans annually. More than 3,000 employers shared $24.7 million in Partners in Injury Reduction (PIR) rebates for the 2001 program, the WCB reported. PIR is a voluntary premium incentive program designed to encourage injury prevention and workplace health and safety practices. About 39 percent of Alberta’s workforce was employed by PIR participants, according to Chairman LeLacheur.
ArizonaSCF of Arizona closed the books on the 2001 year servicing more than 51,000 policyholders, the largest number in its 32-year history. SCF is now handling cases for six insolvent carriers in the state. In accordance with state statute, SCF is mandated to “manage the claims of any insurance carrier or self insured employer that is unable to fully comply with the provisions of the workers’ compensation law relating to the payment of compensation, medical benefits or the final orders of the commission.”
British ColumbiaThe Workers’ Compensation Board’s Research Secretariat announced that $3.3 million had been made available for projects falling within five research themes. The recipients of the grants will be announced this summer.
CaliforniaThe Insurance Commissioner approved a 10.1 percent average increase in workers’ compensation rates effective July 1. The mid-year increase had been proposed by California’s Workers’ Compensation Insurance Rating Bureau. A repeat of the Great Earthquake of 1906 in San Francisco could cause as many as 78,000 injuries, 5,000 deaths and $7 billion in workers’ compensation losses if it occurred today, according to a report by Risk Management Solutions. That quake measured 8.3 on the Richter scale. In the wake of 9/11, insurers are increasingly gathering more detailed information on workers’ compensation exposures due to catastrophic events. A baker in Orange County received more than $500,000 in medical benefits and workers’ compensation payments after a restaurant explosion and fire left burns on 60 percent of his body two years ago. But a deputy district attorney says the fire was actually caused by a methamphetamine lab the baker was operating upstairs in the attic, and has charged the baker with workers’ comp fraud and grand theft, according to the Los Angeles Times. Seventy-four percent of personnel managers in the Sacramento area believe some workers take unfair advantage of workers’ compensation insurance, and 26 percent believe one-fourth to one-half of all workers’ comp claims involve fraud, according to a report in the Sacramento Business Journal.
HawaiiHawaii Employers’ Mutual Insurance Company (HEMIC) is releasing two web-enabled service enhancements, an account inquiry/information system and an on-line application and quoting system. Also underway is conversion to a more robust and fully integrated claim system. HEMIC has recently launched a new series of television commercials featuring key agents and policyholders. The ads also create a link to HEMIC’s widely recognized and well established print media advertising. Previously, HEMIC’s television advertising focused on name recognition. The new campaign includes specific messages about workplace safety and fraud prevention. CEO Bob Dove has recently joined the NAII Workers’ Compensation Committee. A major topic at the May 15th meeting in Des Plaines, Illinois, his first: “State Funds.” Timing is everything.
KentuckyA.M. Best affirmed its rating of A- (Excellent) to Kentucky Employers’ Mutual Insurance. The action is welcomed by KEMI officials since it comes during a time of volatile market conditions within the insurance industry, particularly for workers’ compensation carriers. Best analysts indicate the designation “reflects the company’s historically strong profitability, solid capitalization, favorable loss reserving patterns, and strong market presence.”
MaineThe state Supreme Judicial Court set off a political firestorm with a ruling in February that said the Workers’ Compensation Board could consider any prior injury in combination with a recent work injury in determining the severity of a worker’s disability and the duration of benefits, retroactive to cases brought under a 1993 reform law. After months of intense debate, the legislature passed a law in April that would limit the right of claimants to cite prior out-of-state injuries and would allow the inclusion of previous and new work-related injuries sustained in-state only in new cases, according to the Portland Press Herald. But lobbyists and officials on both sides of the debate predicted that the fight over inclusion of previous injuries is far from over.
ManitobaThe Workers’ Compensation Board observed the national Day of Mourning on April 26 by lowering its flag to half-mast and observing a moment of silence in honor of workers who were killed or seriously injured on the job.
MinnesotaA new state law will allow the Commerce Department to create an insurance fraud investigation unit but provides no funding for its operation, according to a report in the Minneapolis Star Tribune. But with observers estimating that fraud costs the industry in Minnesota hundreds of millions of dollars each year, political observers expect that a funding mechanism will be worked out for the new unit.
MissouriThe Missouri Division of Workers’ Compensation Fraud & Noncompliance unit recently announced that 32 employers had agreed to pay nearly $90,000 in fines for failing to provide coverage for their employees, according to a report in the St. Louis Business Journal. The report also noted that several workers had pled guilty to filing fraudulent claims.
MontanaThe Montana State Fund (MSF) Board of Directors authorized new rates effective July 1, 2002. Overall, the average price for coverage rose less than 4 percent, in sharp contrast to national trends toward much higher rates of increase. “The most recent survey data on insurance rates taken by the Council on Insurance Agents and Brokers shows that the marketplace, which had been hardening more than two years before the (9/11) attacks, is experiencing sharply higher premiums, higher deductions, lower reinsurance limits and restricted capacity from coast to coast and across the major lines of commercial insurance,” said Herbert Leuprecht, chairman of the MSF Board. “While no one likes a price increase, the reality in today's world is that the costs associated with risk are rising, and insurance premiums need to reflect that fact.” MSF President & CEO Carl Swanson added, "The good news is that in stark contrast to the significant price increases occurring nationally, our competitive financial position and surplus is really going to work for Montana businesses in providing market stability and more manageable price increases of less than 4 percent overall on our entire customer base. Some Montana businesses will face increases above this percentage based on their individual characteristics and losses, just as some, for similar reasons, will be priced below our average price increase." Since 1994 the cost of workers' compensation coverage for Montana businesses has actually decreased by 38.9 percent. There was a downward trend in the frequency of claims in the 1990s due to a strong economy and increased awareness of the importance of safety in the workplace. However, costs for medical care continue to rise, driven by inflation and advancements in medical technology and procedures. Added to this are the impacts from the 9/11 attacks.
New MexicoThe Workers’ Compensation Administration (WCA) says it will now mediate disputes between policyholders and insurance carriers over workers’ compensation premiums, according to a report in the New Mexico Business Weekly. Previously, employers would often take their complaints to both the Insurance Division of the Public Regulation Commission and the WCA.
New YorkOut of more than 1,500 workers assigned to help clear debris from the World Trade Center site, only 35 were seriously injured during the cleanup work as of April, according to the New York Times. None of the injuries among the workers was considered life-threatening. However, a spokesperson for the Occupational Safety & Health Administration conceded that OSHA did not count an injury unless it caused the worker to miss at least one full day of work. Using that standard, eight people were seriously injured in falls, three by burns, six by slips or trips and 15 were trapped or struck by falling objects as crews removed 1.5 million tons of debris. A gay man who lost his partner in the World Trade Center asked the state Workers’ Compensation Board to consider him as the man’s spouse and grant him benefits, reported the Associated Press. Workers’ compensation carriers have received some 6,500 workers’ comp claims related to the 9/11 attacks.
North DakotaNorth Dakota Workers’ Compensation (NDWC) rolled out online payroll reporting for sole proprietors and partnerships. While programmers were especially focused on reducing employers’ reporting time requirements and easing administrative workloads, they also paid particular attention to keeping the data confidential, noted NDWC CEO Brent J. Edison. NDWC has appointed Mark Armstrong as its new public relations manager. He previously performed in a variety of assignments at radio station KFYR, including hosting the popular “What’s on Your Mind” and “ProChat” talk shows aired each weekday.
Northwest Territories & NunavutAndrew Wong was appointed chairman of the Board of Directors of the Workers’ Compensation Board. Already a board member for the past two years, he brings extensive WCB experience and a strong financial background to his new role.
OhioThe Bureau of Workers’ Compensation (BWC) will keep rates at their current level for the 2002 premium year beginning in July, and will also grant a one-time 75 percent break on premium bills for the first half of the year, the Cincinnati Business Journal reported. Employers in the state will pay about $187 million less next year than they did in 1998, while the one-time dividend will save employers more than $600 million. “Our unique efforts in Ohio to improve safety in the workplace and to speed medical treatment and return-to-work efforts to injured Ohioans is truly paying off,” said BWC Administrator James Conrad. The Ohio Supreme Court ordered the Baltimore Ravens to pay a $50,000 fine for failing to pay workers’ compensation benefits to five players injured when the team was still playing in Ohio as the Cleveland Browns. The team was self-insured. In March the BWC debuted a CD-ROM training program designed to reduce workplace injuries. The Industrial Learning Alliance (ILA) will distribute the free program of five CDs to Ohio’s 23,000 manufacturers. The program is a result of a partnership of the BWC, ILA, Department of Development, Department of Education, Ohio Board of Regents and the Ohio Manufacturers Association.
Oklahoma
CompSource Oklahoma’s newly implemented agent plan may be just what the doctor ordered to boost Oklahoma’s ailing workers’ compensation insurance market. As more national carriers continue to exit the Oklahoma market, many independent insurance agents have been scrambling to find a viable market to write coverage for their clients. The plan opened the door for both independent and direct agents to write coverage through the state’s only assured market for workers’ compensation. CompSource has written in excess of $7.5 million in premium through the new plan to date. “We’re receiving an average of 20 submissions daily from agents,” said David Fain, CompSource’s underwriting manager. Gov. Keating signed into law a bill that will regulate professional employment organizations (PEOs). According to the Oklahoman newspaper, the law will ensure that PEOs are in compliance with state insurance laws and will settle the question of whether workers are employees of the business client or the out-sourcing co-employer. The law becomes effective in November.
OntarioThe Workplace Safety & Insurance Board (WSIB) recently awarded prizes to high school students who participated in the first Ontario Workplace Safety Student Video Contest. The $1,000 first prize went to students of Ancaster High; the $750 second prize was won by Banting Memorial High in Alliston; and Ottawa’s Canterbury High won the third prize of $500.
PennsylvaniaMitch Lyons, a former player for the Pittsburgh Steelers whose football career was ended by an injury in December 1999, lost his appeal of a section of Pennsylvania’s workers’ compensation law that limits workers’ compensation benefits for professional athletes. According to the Associated Press, Lyons now works at a financial management company making about one-eighth what he earned in football. In addition, he gets $117 a week in workers’ compensation benefits. A recent article in the Philadelphia Inquirer indicated that an increasing number of construction laborers in this area are undocumented aliens who work for low wages paid in cash, receive no workers’ compensation coverage and fear deportation if they complain. The lower labor costs enjoyed by subcontractors who employ illegal aliens create an unfair competitive edge over construction companies that follow the rules; for instance, an undocumented carpenter might work for as low as $8 an hour compared to the usual wage of $18 to $24 plus benefits. But the events of 9/11 have forced the Immigration & Naturalization Service to devote its enforcement activities toward investigating possible terrorists. “Our number-one priority now is national security and counter-terrorism. Drywall and construction are pretty far down the line,” an INS official told the paper.
Prince Edward IslandThe Workers’ Compensation Board released a report on “Estimating Earnings Capacity,” commonly known as “deeming.” The report recommends, among other things, the creation of medical review panels and that benefits for workers be extended beyond the date of deeming. Committee members representing both employers and workers voiced disagreements with various parts of the report.
TexasDallas County has reached its first plea agreement with a corporation accused of health care insurance fraud. Recovery Analysis Inc. entered into a plea agreement to the second-degree felony charge of aggravated theft of over $100,000. Recovery Analysis will pay a $10,000 fine and $168,346 in restitution to Texas Mutual Insurance Co. and 16 other participants in the federal and state workers' comp systems. A 1998 Texas Mutual investigation led to a March 1999 audit of Recovery Analysis by the Texas Workers' Compensation Commission (TWCC). Investigation revealed that between September 1, 1994 and May 31, 1998, Recovery Analysis billed for 60 minutes of treatment for state and federal workers' compensation cases when, in fact, the patients were eating lunch at various restaurants. Recovery Analysis paid for lunches, provided transportation, and billed $64 per hour, per patient for treatment and/or training it never rendered. Additionally, Recovery Analysis provided group aquatic therapy for patients, but billed for the more expensive individual aquatic therapy.
WashingtonThe Department of Labor & Industries (L&I) announced it would return nearly $78 million in workers’ compensation premiums to employers and associations enrolled in retrospective rating plans that encourage reduction of workplace injuries and improved management of injured workers’ claims. L&I and the Washington Restaurant Association launched a summertime program of workshops designed to prevent injuries to teenaged restaurant workers. The restaurant industry employs up to half of teen workers in the state. Slips and falls, cuts, burns and sprains comprise 85 percent of the injuries to teens in restaurants. “With aggressive support from employers and the Washington Restaurant Association, we’re convinced we can continue to see a significant reduction in teen injuries,” said L&I Director Gary Moore. L&I announced in April it would step up its campaign to sign up residential wood framers in the state workers’ compensation program. The department reported that increased participation in the program has resulted in 17 percent fewer injuries caused by falls from ladders and 32 percent fewer eye injuries.
West VirginiaThe Bureau of Employment Programs recently filed a lawsuit against a construction firm in Mercer County whose account with the Workers’ Compensation Division was nearly $6,000 in arrears. Download complete newsletter in PDF format
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The
Board of Directors of the Workers’ Compensation Board-Alberta named
Guy Kerr President and CEO, effective July 1, 2002. “After
an extensive search process, we are confident that we have hired the best
candidate to lead the WCB-Alberta forward in our continued commitment
to be fair, open and accountable to all our stakeholders,” said
WCB Chairman Rick LeLacheur.
Governor
Frank Keating approved House Bill 2370 which provides
for the renaming of the managing executive of CompSource. Pursuant to
HB2370, Commissioner Terry McCullar’s title is
changed to President and Chief Executive Officer.