JL_risklogo.png

Workers Comp Audit Stress Reducer
Use It For Your Next Premium Audit

Federalization – Is Workers Comp Next Line of Insurance?

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

Is Workers Comp Next For Federalization?

The Federalization of malpractice  makes one think that Workers Comp is the next step.  Federal medical malpractice reform hit the insurance airwaves very heavily last week. The bill is named HR5 – “Help Efficient, Accessible, Low-Cost, Timely Healthcare (HEALTH) Act of 2011.”

Picture of Stethoscope and Gavel Federalization malpractice
123RF

The bill sharply limits all civil suits against health care providers, including nursing homes, hospitals, and insurance companies. If this is not the federalization of insurance, I must have missed something. It even says insurance companies would have a limit on the amount of the lawsuit.

I have written often about the high probability of at least a partial federalization of Workers Comp insurance. HR5 seems to be another step in that direction. The nonpartisan National Conference of State Legislators (NCSL) has informed Congress of its “strong, bipartisan opposition” to the enactment of H.R. 5″. A letter was written to the House subcommittee to voice strong bi-partisan opposition to enacting the bill. You can see the letter here.

The excerpts are:

Picture of Gavel and Money Federalization Medical Malpractice
123RF

Medical malpractice, product liability and other areas of tort reform are areas of law that have been traditionally and successfully regulated by the states. Since the country’s inception, states have addressed the myriad of substantive and regulatory issues regarding licensure, insurance, court procedures, victim compensation, civil liability, medical records and related matters. In the past two decades, all states have explored various aspects of medical malpractice and products liability and chosen various means for remedying identified problems. Over the past several years, states have continued to revise and refine their medical malpractice laws and procedures

Federal medical malpractice legislation inappropriately seeks to preempt various areas of state law. All 50 states have statutes of limitations for medical malpractice suits. All 50 states have rules of civil procedure governing the admissibility of evidence and the use of expert witnesses. Many states have caps on noneconomic damages and limitations on attorney’s fees in medical malpractice cases

Picture Of Money Federalization In Money Clip
123RF

NCSL’s opposition will extend to any bill or amendment that directly or indirectly preempts any state law governing the awarding of damages by mandatory, uniform amounts or the awarding of attorney’s fees. Our opposition also extends to any provision affecting the drafting of pleadings, the introduction of evidence and statutes of limitations. Furthermore, NCSL opposes any federal legislation that would undermine the capacity of aggrieved parties to seek full and fair redress in state courts for physical harm done to them due to the negligence of others.”

I think the NCSL is saying what we will be commenting on in reference to Workers Compensation in the future. I have underlined what sounds very similar to Workers Compensation. Even the State Legislators are concerned on a bi-partisan basis about the reach of Federal legislation.

I will keep posting articles when I see one that seems to be a step towards insurance Federalization. Thanks to 7th Amendment Advocate for their assistance.

©J&L Risk Management Inc Copyright Notice

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

Table of Contents

Related...

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

Subscribe

Get the latest workers' comp news FREE!

Name
This field is for validation purposes and should be left unchanged.