Unless a company is a subscriber under the Texas Labor Code, they loose the common law defenses in court. This applies to ‘going bare’ and to the ERISA plans.
There are numerous common law defenses that can be presented. Testing positive for drugs / alcohol, intentional injury,employee actions were “sole proximate cause” and, as the Tx Supreme Court has ruled, if the injury is due to an “open and obvious” hazard are examples.
ERISA has no impact on a liability issue. It applies to the medical / disability elements of the injury. The rules adopted by the employer strictly govern the management of the claim.
As a risk manager, I managed three nonsubscriber programs. All were very successful. The cost savings, while still providing quality benefits, were substantial. Cost of program (premium, deductible fund, etc.)totaled less than 30% of what comp would have cost.
Nice little promo for nonsubscription. I’ve had my hat handed to me big time on nonsubscriber losses. There’s no telling what will happen when the jury is deciding on the financial future of a severly injured worker.
Every nonsubscriber policy now requires binding arbitration to settle liability issues. Properly written, the arbitration requirement also applies to any ERISA issues.
Well written article, should be considered a primer for those considering non subscription. Roy Powell referred to the Great American insurance Company as a “general agency”, that is not correct, they are direct writer, fact check
References to the benefits of ERISA were overly generic, clarity can be obtained from Mr. Mike Dodge, the preeminent author of ERISA plans in Texas and Oklahoma.
Unless a company is a subscriber under the Texas Labor Code, they loose the common law defenses in court. This applies to ‘going bare’ and to the ERISA plans.
Your comment is inaccurate.
There are numerous common law defenses that can be presented. Testing positive for drugs / alcohol, intentional injury,employee actions were “sole proximate cause” and, as the Tx Supreme Court has ruled, if the injury is due to an “open and obvious” hazard are examples.
ERISA has no impact on a liability issue. It applies to the medical / disability elements of the injury. The rules adopted by the employer strictly govern the management of the claim.
As a risk manager, I managed three nonsubscriber programs. All were very successful. The cost savings, while still providing quality benefits, were substantial. Cost of program (premium, deductible fund, etc.)totaled less than 30% of what comp would have cost.
Nice little promo for nonsubscription. I’ve had my hat handed to me big time on nonsubscriber losses. There’s no telling what will happen when the jury is deciding on the financial future of a severly injured worker.
Every nonsubscriber policy now requires binding arbitration to settle liability issues. Properly written, the arbitration requirement also applies to any ERISA issues.
Well written article, should be considered a primer for those considering non subscription. Roy Powell referred to the Great American insurance Company as a “general agency”, that is not correct, they are direct writer, fact check
References to the benefits of ERISA were overly generic, clarity can be obtained from Mr. Mike Dodge, the preeminent author of ERISA plans in Texas and Oklahoma.