The writer forgot to mention that Texas is the only state that does not require employers to purchase workers comp coverage.
So, how is that working out?. Approximately 35% of employers do not carry comp. Instead, the wise ones purchase an occupational accident/liability policy. This policy provides coverage for medical, disability and legal claims from injured workers. The employer implements an ERISA governed benefit plan that clearly explains to employees what they have to do in order to receive benefits. The basic requirements are: immediate claims reporting (don’t leave work without saying “ouch”), immediate drug test and treatment by an approved doctor. No doctor shopping.
And the results are? Premium savings of 50-80% as compared to workers comp (that is not a typo)and claims that cost 25-30% of what a comp claim would cost.
Actually I read his book and he does talk about Texas being the only compulsory state left. As far as the Employers Indemnity policy you mention, I really don’t think it’s a very good option.
1) It is an indemnity policy rather than a “pay on behalf” policy so the insured has to wait to be paid by the carrier. Though this can be endorsed out.
2) Employers’ liability coverage as provded in the standard Work Comp policy is not provided.
3) There are exclusions not present in WC policies: injury to those illegally employeed (Not in the WC policy); injury caused by asbestos; and others.
4) One major exclusion in the form is the work comp exclusion. If an employee goes to a state where WC is required due to lack of reciprocity – there is NO coverage from this form.
5) Don’t these policies generally have some level of SIR?
If the Supreme Court upheld the constitutionality of compulsory work comp insurance… What makes us think that OBAMA CARE won’t be similarly upheld. Apparently, back in the early part of the 20th century, PRIVATE INDUSTRY could not solve the “injured employee” problem without governmental intervention. Today, in the early part of the 21st century, again… PRIVATE INDUSTRY has offered no solution to the problem of UNINSURED/UNDER INSURED American’s regarding HEALTH INSURANCE/affordable medical care for OFF THE JOB injuries and illnesses. Looks like HISTORY has had to repeat itself again. If only PRIVATE INDUSTRY could have come up with SOMETHING reasonable to prevent the Government from intervening. Eventually, the STATUS QUO becomes the STATUS NO.
There is a difference between Work Comp and Obamacare in that Work Comp is regulated at the STATE level – not the federal level. The 1917 decision gave STATES the right to require compulsory coverage, not the feds.
An issue is how the WC law is implemented in a particular state. In CA it is implemented piss-poor. In my experience (I’m an insurance adjuster and attorney), it takes between 3 and 5 years for a average WC litigated case to resolve. Defense rather than payment is the rule. At the adjuster level the administrative brush-off is the rule–can’t find the file, etc.
I had a case which involved a neighboring state (Oregon) and I called the insurance co. in Oregon. To my amazement I spoke with a civil, informed, helpful adjuster who had her the file at her fingertips. Totally unknown in CA.
The writer forgot to mention that Texas is the only state that does not require employers to purchase workers comp coverage.
So, how is that working out?. Approximately 35% of employers do not carry comp. Instead, the wise ones purchase an occupational accident/liability policy. This policy provides coverage for medical, disability and legal claims from injured workers. The employer implements an ERISA governed benefit plan that clearly explains to employees what they have to do in order to receive benefits. The basic requirements are: immediate claims reporting (don’t leave work without saying “ouch”), immediate drug test and treatment by an approved doctor. No doctor shopping.
And the results are? Premium savings of 50-80% as compared to workers comp (that is not a typo)and claims that cost 25-30% of what a comp claim would cost.
One reason employers relocate to Texas.
Actually I read his book and he does talk about Texas being the only compulsory state left. As far as the Employers Indemnity policy you mention, I really don’t think it’s a very good option.
1) It is an indemnity policy rather than a “pay on behalf” policy so the insured has to wait to be paid by the carrier. Though this can be endorsed out.
2) Employers’ liability coverage as provded in the standard Work Comp policy is not provided.
3) There are exclusions not present in WC policies: injury to those illegally employeed (Not in the WC policy); injury caused by asbestos; and others.
4) One major exclusion in the form is the work comp exclusion. If an employee goes to a state where WC is required due to lack of reciprocity – there is NO coverage from this form.
5) Don’t these policies generally have some level of SIR?
Just some thoughts.
If the Supreme Court upheld the constitutionality of compulsory work comp insurance… What makes us think that OBAMA CARE won’t be similarly upheld. Apparently, back in the early part of the 20th century, PRIVATE INDUSTRY could not solve the “injured employee” problem without governmental intervention. Today, in the early part of the 21st century, again… PRIVATE INDUSTRY has offered no solution to the problem of UNINSURED/UNDER INSURED American’s regarding HEALTH INSURANCE/affordable medical care for OFF THE JOB injuries and illnesses. Looks like HISTORY has had to repeat itself again. If only PRIVATE INDUSTRY could have come up with SOMETHING reasonable to prevent the Government from intervening. Eventually, the STATUS QUO becomes the STATUS NO.
There is a difference between Work Comp and Obamacare in that Work Comp is regulated at the STATE level – not the federal level. The 1917 decision gave STATES the right to require compulsory coverage, not the feds.
An issue is how the WC law is implemented in a particular state. In CA it is implemented piss-poor. In my experience (I’m an insurance adjuster and attorney), it takes between 3 and 5 years for a average WC litigated case to resolve. Defense rather than payment is the rule. At the adjuster level the administrative brush-off is the rule–can’t find the file, etc.
I had a case which involved a neighboring state (Oregon) and I called the insurance co. in Oregon. To my amazement I spoke with a civil, informed, helpful adjuster who had her the file at her fingertips. Totally unknown in CA.