This makes a ton of sense. Staffing and, especially, PEO’s could essentially be insurance companies with little of no capital by putting a small deposit with the state and avoid regulation by the insurance department. One PEO had written 300 mil in business at super low rates and set aside reserves for less than 100 mil while having essentially zero tangible net worth. Any insurance company would have been taken over by the state, but self insured employers have a much looser regulatory environment and these PEO’s can quickly go out of business and start over clean.
When you have a high mod, sometimes PEOs are the only Workers’ Comp alternative. This sounds more like political gamesmanship from the traditional Workers’ Comp industry, as they are losing business to PEOs. Witness what happened to poor John Mabee and Golden Eagle. State Fund was his target. He took a lot of business away from State Fund. The traditional market and State Fund didn’t like it. They sicced their regulatory dogs on him and took over his company, which Liberty Mutual now owns. This court ruling vs. PEOs sounds similarly like the traditional WC market once again calling in their attack dogs. The traditional market is failing CA businesses. Workers’ Compensation is too expensive. Many companies go under the radar and claim that they are exempt, just to stay in business. State Fund is taking on too much business that the traditional market won’t take. Stste Fund was never designed for this; they were designed to be the market of last resort, not of first or only resort. PEOs are a solution. Now PEOs are being attacked. In my thirty years in the industry, I have yet to see true, real, actual, bonafide, legitimate Workers’ Compensation reform in CA. Those who say the free market can fix problems better than government need only look at CA’s Workers’ Comp failures to see how wrong they are.
Legitimate Workers’ Compensation reform in CA is possible as the Social Security Advisory Board long-range projections are by nature difficult & carry a larger degree of uncertainty,
The Congressional Budget Office (CBO) makes projections of total health 2 care expenditures over the next 20 years. Extrapolating the historical rate of health care spending growth relative to GDP growth into the future, however, produces projections that are growing 5% faster than GDP over 75 years, spending on health care will consume virtually the entirety of the national income.
For these reasons & more, it is essential that policymakers take action to restrain the rising cost of health care in ways that also lead to better quality of care. This health issue is at the very heart of the long-term economic security of the American public. It is urgent that action be taken & the time for action is now.
I wonder how this case went, I hope this case should be well taken care of as another staffing agency is making our best to provide health care solution to employees.
This makes a ton of sense. Staffing and, especially, PEO’s could essentially be insurance companies with little of no capital by putting a small deposit with the state and avoid regulation by the insurance department. One PEO had written 300 mil in business at super low rates and set aside reserves for less than 100 mil while having essentially zero tangible net worth. Any insurance company would have been taken over by the state, but self insured employers have a much looser regulatory environment and these PEO’s can quickly go out of business and start over clean.
When you have a high mod, sometimes PEOs are the only Workers’ Comp alternative. This sounds more like political gamesmanship from the traditional Workers’ Comp industry, as they are losing business to PEOs. Witness what happened to poor John Mabee and Golden Eagle. State Fund was his target. He took a lot of business away from State Fund. The traditional market and State Fund didn’t like it. They sicced their regulatory dogs on him and took over his company, which Liberty Mutual now owns. This court ruling vs. PEOs sounds similarly like the traditional WC market once again calling in their attack dogs. The traditional market is failing CA businesses. Workers’ Compensation is too expensive. Many companies go under the radar and claim that they are exempt, just to stay in business. State Fund is taking on too much business that the traditional market won’t take. Stste Fund was never designed for this; they were designed to be the market of last resort, not of first or only resort. PEOs are a solution. Now PEOs are being attacked. In my thirty years in the industry, I have yet to see true, real, actual, bonafide, legitimate Workers’ Compensation reform in CA. Those who say the free market can fix problems better than government need only look at CA’s Workers’ Comp failures to see how wrong they are.
Legitimate Workers’ Compensation reform in CA is possible as the Social Security Advisory Board long-range projections are by nature difficult & carry a larger degree of uncertainty,
The Congressional Budget Office (CBO) makes projections of total health 2 care expenditures over the next 20 years. Extrapolating the historical rate of health care spending growth relative to GDP growth into the future, however, produces projections that are growing 5% faster than GDP over 75 years, spending on health care will consume virtually the entirety of the national income.
For these reasons & more, it is essential that policymakers take action to restrain the rising cost of health care in ways that also lead to better quality of care. This health issue is at the very heart of the long-term economic security of the American public. It is urgent that action be taken & the time for action is now.
I wonder how this case went, I hope this case should be well taken care of as another staffing agency is making our best to provide health care solution to employees.