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Death of Workers Comp – CMS Now Runs FIO

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CMS Now Runs FIO

The CMS runs FIO – should this be death of Workers Comp?   OK, so the title is meant to catch your attention. The second part is actually a reality as of last week. The federalization of Workers Comp remains an issue.

Picture of hand holding small board insurance drawing CMS Runs FIO
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Yes, the CMS – the government organization that will be warehousing all the Workers Comp data in 2011 now is over the office that can make rules that affect Workers Comp overnight. I warned about this development early in 2010 in this article and this article.

The Federalization of Workers Comp is yet becoming more of a reality. Will the Federal Insurance Office (FIO) use the Workers Compensation data they will be warehousing to make Federal rules on how Workers Comp functions along with other lines of insurance?

Picture Of CMS Grave
Wikipedia – Lvklock

What does this mean for any one that is involved with Workers Compensation? I think the rules are changing slowly but surely. The changes will then accelerate over time. There was a great article recently written on Workers Comp becoming irrelevant. Check it out here.

In this context, one would have to think being extremely flexible is the key to remaining successful where there are changes to the Workers Compensation landscape. Areas such as general liability, subrogation, and other lines of insurance would be great to explore for expanding beyond Workers Comp.

The AIC, ARM, CPCU and other professional designations all provide great education into areas beyond Workers Comp. One area that is so misunderstood is subrogation. In our file and reserve reviews we often see Workers Compensation adjusters struggling with pursuing benefits from liable third parties. The claim adjusters, underwriters, and other insurance personnel were just not trained in this area.

Subrogation is not something you can teach in an in-house three hour conference. Pursuing funds from third parties requires a new diary system to track the recoveries of funds. I have seen very few Workers Comp insurance systems that aided in this area.

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James Moore

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Mgmt Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications

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