Missouri Fines TPA Over $100,000
According to a recent press release from the Missouri Attorney General’s, Broadspire and Specialty Risk Services, settled with their office for over $100,000 total in fines.
Missouri has taken a new tact on late reporting of injuries by referring the cases to the Attorney General’s office. Both companies had knowingly failed to report injuries to the Division of Workers Compensation. The time limit in Missouri is 30 days maximum.
Both companies admitted to violating the law, agreed to remain compliant for two years, and agreed to take necessary steps to prevent recurrence of future violations.
I do not understand the “knowingly did not report” part of the charges. Third Party Administrators handle claims for self-insureds. This means the employers did not avoid paying any premiums by the reports not being filed. It would seem to me the TPA’s may have been negligent in filing reports late by accident or possibly some type of electronic processing error.
Many years ago I was fined on a file for not sending in the first report of injury. Things like this happen in the claims industry – but they usually happen by accident, as in my example. I am left with more questions than answers when I read the press release.
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