California

California AB 1465 CAMPN State Sponsored Medical Networks Debate

CAMPN – California AB 1465 Alters Workers’ Comp Medical Treatment Networks The term CAMPN – California AB 1465 is an Assembly Bill that proposes to increase the injured workers’ access to medical treatment.   The California Workers’ Compensation Institute (CWCI) published a study this month that possibly surprised quite a few

California Prop 22 – Nationwide Effect on Workers Comp Debate

California Prop 22 – Not Just A One State Issue California Prop 22 was overwhelmingly given a thumbs up by the Golden State’s Voters. If you are saying, yes, but I do not live in California, check out the last heading in this article  – worth your time.  For many

California Workers Comp Contractor Vote – Prop 22 on Ballot

Uber or Lyft Driver – California Workers Comp Contractor vs Employee – Prop 22 One of the most heated online and in-person (before COVID-19) debates that I had witnessed in California – Is an Uber or Lyft driver a California Workers Comp Contractor or an employee? Some of the most

California Assembly Bills Try To Right The Wrongs of AB 5

Possible Corrections To AB 5 Introduced With Two New California Assembly Bills Two California Assembly Bills were introduced very quickly after the rumble caused by California AB 5 since the Bill became law on January 1, 2020.  California Assembly Bill 5 ratified the famous 2018 Dynamex court decision. Many people

California AB 5 Causes Workers Comp Conundrum For Gig Workers

New California AB 5 Legislation Causes Confusion for Gig Workers And Comp Carriers The New California AB 5 (Assembly Bill 5) has the gig worker economy up in arms.   Let us start with the Bill itself.  The Bill can be found here.  Reading it over may be a good idea.

California Dynamex Decision – Another Workers Comp Crisis Recycled?

California Dynamex Decision – Overreaction or Harsh Reality?  The California Dynamex decision hit the Workers Compensation airwaves and blogosphere over the last few weeks.  An article by WorkCompCentral noted reactions across the country.  I cannot link to the article as it is behind a paywall.  Check out this article on

California Supreme Court Decision Independent Contractors Definition

California Supreme Court Changes Definition of Independent Contractor The California Supreme Court recently decided how to distinguish a contractor from an employee for the Golden State’s employers. The decision is called Dynamex decision.  The California Supreme Court decision can be found here.  For the legal diehards, the decision is 85+

Workers Comp Loss Prevention Throughout Claim = Loss Reduction

Workers Comp Loss Prevention Should Never Stop Workers Comp loss prevention and claims loss reduction should be considered as the same function – just more defined.  When I present at safety or risk management conferences, one of the subjects I cover is the continued involvement of the safety officer or

Safety Consultant Disagreed With Me On Article – His Take

Our Safety Consultant Glen Disagrees With Using Mod As Only Bellwether Our safety consultant, Glen, sent over an article in response to a recent article by me.   I always like to hear from the Safety realm as that is where a company can save on Workers Compensation premiums on the

WCAN WCIRB California Workers Compensation – 2017

WCAN WCIRB California Workers Comp Full Analysis (Great Charts) The WCAN WCIRB California Analysis of Workers Comp  consisted of many great charts.   The WCAN  (Workers Comp Action Network) provided a great link to a very thorough breakdown of everything you want to know about California Workers Compensation in 2017. The

California Workers Comp Status Conferences – Adjuster Guest Author

Setting California Workers Comp Status Conferences This article on setting California Workers Comp Status conferences definitely applies to Workers’ Compensation claims at the WCAB level.   However, I think that the technique could be useful in other jurisdictions so use your own judgment and apply the techniques as they apply

Safety Incentive Plans – OSHA’s New Posture

OSHA’s Surprising New Posture On Safety Incentive Plans This article on safety incentive plans was written by our ept Safety Consultant Glen Dulac. Always remember that a well-crafted safety incentive plan will bring dramatic results in moving your safety program from good  to great.  Studies show as much as a

California AB 1643 Changes Apportionment For Worse

California AB 1643 Warning Memo From WCAN The new California AB 1643 House Bill has caused  quite a bit of controversy.  WCAN has produced a reminder to contact Governor Brown to veto the bill.   The bill summary is below. Apportionment is basically assigning a permanent disability rating to only the

California CWCI Independent Medical Reviews – Other Statistics

California CWCI Publishes Quarterly Report on IMR Statistics – The Other Numbers The California CWCI (California Workers Compensation Institute) recently published a spotlight report on the state’s Independent Medical Review (IMR) process.   The IMR process was initiated due to Senate Bill 863. If a UR (utilization review) physician provides an

WCIRB WCAN WCRI = Confusion on California WC Statistics

Confusion on California WC Statistics WCIRB WCAN WCRI  – Three trusted statistical providers that now have me confused on whether or not SB 863 actually had an effect on California’s Workers Comp system. Acronyms – WCIRB  – Workers Compensation Insurance Rating Bureau – The Rating Bureau for California’s WC system

California Claims Adjustment Costs Are Massive – WCAN

California Claims Adjustment Costs Very Expensive The California claims adjustment costs are massive when compared to other states.  The Workers Compensation Action Network (WCAN) published the above chart last week. A similar study was published in an article on this blog last week which covered the newest WCIRB Study (rating bureau

California WCIRB Rating Formula Major Changes

California WCIRB Rating Formula The California WCIRB rating formula changes for January 2017 stood out in one of their recent press releases.   The WCIRB (Workers Compensation Insurance Rating Bureau) is the rating organization for WC similar to NCCI. Before I start to analyze the press release, the WCIRB personnel

California Workers Comp System – What Happened To The Reform(s)?

California Workers Comp System Reforms Fizzled? The California Workers Comp System was supposed to reduce costs after SB 863 was enacted in  2013.   SB 899 was the previous cost-saving measure that seemed to hold California’s Workers Comp costs which seemed to work for five to seven years. Check out

California’s Workers Compensation Difficulties – Great Primer

California’s Workers Compensation Difficulties California’s Workers Compensation difficulties may have subsided for a few years.  However, it seems that it was only a temporary situation. Workers Compensation Action Network (WCAN) recently responded to ProPublica’s and NPR’s analysis of Workers Comp in California.   A recent responsive article was also published

Are Telephonic Payroll Audits Legitimate- Reader Question

Telephonic Payroll Audits Legitimate For Smaller Employers Payroll audits, also known as premium audits can take many forms.  Telephonic payroll audits have gained in popularity for smaller employers.  There are different audit types such as: Telephonic- yes they are legitimate but read on for more info Hybrid Physical Mail-in (Voluntary)

Buzz Around California’s AB 1897 Has Been Amazing

Big Buzz Around California’s AB 1897 and Temporary Employment Agencies   The Buzz around California’s AB 1897. Please note that this article will likely apply to other states than just California.  Senate Bill AB 1897 has caused quite a stir in California. Our California clients have begun to pay attention in

NWCDC Temp Nation – California AB 1897

California AB 1897 Changes The Temporary Employee – Employer Relationship The upcoming effects of California AB 1897 caught me slightly by surprise.  Many states had discussed laws that reinforced the ladder of insurance.   This new statute addressed it directly. I tried to blog live on many of the sessions

California SB 863 Failure Result In 6.7% WCIRB Rate Increase?

California SB 863 California SB 863 was supposed to be a cost-cutting measure for all parties involved in their WC system.  Last week, the WCIRB  (Workers Comp Insurance Rating Bureau) recommended a 6.7% increase due to a number of factors for policies effective January 1, 2015.   According to the

Live CA WCIRB Webinar On State Of California’s Work Comp System

CA WCIRB Webinar The following is a great live CA WCIRB webinar that was typed in as it happened. Please excuse any typos, weird language as I am typing this live as I hear it.   Thanks for the understanding. Check back often as this blog will keep updating, if

New Mexico Supreme Court – Bad Decision on Temporary Total Disability

New Mexico Supreme Court Turns TTD into PTD The New Mexico Supreme Court recently ruled that Temporary Total (TTD) can be a permanent disability.  These types of decisions are often not underwritten by the Workers Compensation carrier. As discussed earlier in this blog, the WC insurance process is a delayed system.  The

SB 863 Actually Increased California Medical Costs?

California’s SB 863 – Unintended Consequences? Did California’s SB 863 increase the Workers Comp medical costs for the state? Workers Compensation Research Institute WCRI recently published a study that showed that California’s medical cost growth had slowed from 8% growth per year to 3% just before SB 863 was enacted.  When

Claim Costs Effect on WC Insurance Rates – Great Graph

Claim Costs Effect on Rates Direct and Delayed The claim costs effect has a direct but delayed relationship on insurance rates. California’s Workers Comp Action Network (WCAN) has produced a few great infographics over the last few weeks.  The infographic shows how claim costs affect insurance rates.   As posted

Workers Compensation Action Network (WCAN) – Great California Chart

Workers Compensation Action Network Workers Compensation Action Network (WCAN) produced another great graphic on the Workers Comp situation in California.   Click here for the chart.   Why do I try to point out most of the happenings on WC in CA?   This is a WC system that is becoming

Workers Comp Action Network – California SB 863 – Great Infographic

Workers Comp Action Network Produces Great SB 863 Infographic The Workers Comp Action Network produces great summary charts for California work comp analysis.   They have once again made the complicated much simpler with their great work. WCAN  (Workers Comp Action Network) has created the best explanation of the implementation and

California’s Rating Bureau (WCIRB) Great E-Mod X-Mod Explanation

California’s Rating Bureau (WCIRB) The WCRIB – California’s Workers Compensation Rating Bureau (similar to NCCI) has written quite a few great plain-language documents on explaining how X-Mods (E-Mods, EMR’s, Mods,etc.)  affect employers.  One of those can be found by clicking here. Their X-Mod formula is slightly different from most of

California’s WC Reform(?) Produces Startling Numbers

California’s WC Reform Not Yet A Cost Saver A few startling numbers from California’s WC Reform are listed below.  One wonders if the reform is working or if not enough time has elapsed to the differences.   Workers Compensation Action Network (WCAN) recently published a press release and email on

Statistical Madness – Another Shining Example From Internet

Statistical Madness – Eating While Driving  More statistical madness was created with another shining example this month. Over time, a few Workers Comp statistics articles are published that basically have no basis in fact.  For example, many pundits said that California SB 863 was going to save employers large amount

Pay ACA Penalty File Workers Comp Claim For Medical Treatment

ACA Penalty May Not Deter Workers Comp Claims  What if a worker decided to pay the ACA penalty and file a WC claims for medical treatment?  The Affordable Care Act (ACA) may cause an unintended spike in Workers Compensation claims.   One of the concerns over the years in claims

WCIRB ‘s New Mod Formula Hefty Effects Small California Employers

WCIRB ‘s New Mod Formula – Small Employers Must Enact Safety Programs Now WCRIB’s new mod formula will heavy affect small employers with a less than stellar safety record. Last Friday, I briefly covered California’s WCIRB and the change in the X-Mod Calculation effective 1/1/2013.   I thought I would

Californias WCIRB New X-Mod Formula Penalizes Unsafe Employers

Californias WCIRB X-Mod Formula Heavily Penalizes Small Unsafe Companies This month Californias WCIRB produced a new small employer X-Mod formula. Yesterday, I attended the WCIRB Conference in Burbank, CA.  The WCIRB makes one work in their workshops.   They always put on great workshops. One of the things I noticed

California’s Great Insurance Database Of Construction Contractors

California’s Great Insurance Database > CLSB Californians have a great insurance database for construction contractors.  The Contractors State License Board  (CSLB) maintains a great database to see if a contractor has liability insurance.   A homeowner can immediately see if the company working on their home has liability insurance. I have recommended

Workers Comp Program At Bankrupt City of Stockton California

The Bankrupt City of Stockton California The largest bankrupt city in the nation – Stockton, CA is self insured with CorVel as the Third Party Administrator (TPA).  Stockton’s Workers Comp program seems to still be a fully funded self insured program. One of the Five Keys To Saving Workers Comp

Workers Comp Audit Materials Needed For Full Review

Workers Comp Audit Materials Needed The materials needed for Workers Comp Audit are communications, data, information and contracts. We receive this question quite often when customers or potential clients inquire about our services.   We usually do not disclose this information until a contract is signed as we use a

California – WCIRB Upcoming Meeting Will Affect Certain Employers

WCIRB Upcoming Meeting Will Affect Certain Employers Heavily The upcoming meeting of WCIRB in California may be one to mark on your calendar if you own one of the below listed companies.  The WCIRB may change some classification  codes depending on a meeting on March 5th.  The WCIRB is California’s rating agency for

California Employer Question On Experience Modification Factor (XMod)

California Employer Question A California employer emailed in this question last weekend.  “We are a medium-sized employer (dry cleaner) in central California.   Our Experience Modification Factor increased significantly over the last few years.  The increase seems to have resulted in our Workers Comp premiums rising  significantly.   What is

California Loss Cost Multipliers Say No To Reform Measures

California Loss Cost Multipliers Do Not Reflect Any Reform Measures The California Loss Cost Multipliers has said no to reforms. Loss Cost Multipliers (LCM’s) are one of the concepts in Workers Comp that I have been covering for many years.  LCM’s are the carriers’ own assessments of risk in the marketplace.

Who Is The WCIRB And What Do They Regulate?

Who Is The WCIRB ? What do they regulate and who is the WCIRB ? I received this question on the WCIRB last night from a California employer that had grown large enough to receive an X-Mod.  Congratulations on your company’s growth in a tough economy.  Sometimes, it is best

California SB 863 Webinar – Thumbs Up To Presenters

Thumbs Up – California SB 863 Webinar According to sponsors, the SB 863 Webinar turnout was massive.  That is to be expected with such a confusing subject.  The reforms were extensive.  They presenters had to cover a large amount of info in 75 minutes. The three sponsoring organization were: ·         WCAN

California’s WCIRB Has New Policy Ombudsman in Place

New Policy Ombudsman – Addie Wong The new policy ombudsman for CA’s WCIRB is Addie Wong.   She was recently named the new ombudsman for the California Workers Compensation Insurance Rating Board (WCIRB). I thought I would add in her introduction letter and the functions of the Ombudsman position. Introduction

California Workers Comp Costs Growing Quickly

CA Workers Comp Costs The quickly growing Workers Comp costs in California places it as the most expensive state.  I was perusing an article from the Workers Compensation Action Network that contained a few astounding statistics. If you are in CA or want to see what your Workers Comp situation may

California Changes Landscape On Premium Audits And Other Disputes

California Changes Disputes With Bill Signed By Governor Brown The State of California changes landscape of premium audits and others disputes.   Last night, I was reading over a short article that covered a new area for insureds in California Workers Comp disputes. I will actually cover more on CA

State Funds – Are They Really Worth It As Insurers Of Last Resort?

State Funds – Are They Losing Viability? The State Funds that cover just their headquarters state have begun to look elsewhere.  I read today where SCIF (State of California Insurance Fund) has requested legislation where they can expand their coverage into non-California states for their insureds. I was wondering if

Two Workers Comp Bills Vetoed By California Governor Schwarzenegger

Two Workers Comp Bills Vetoed by Governor Schwarzenegger The Governator has two Workers Comp bills Vetoed,that opponents said would have had dire effects on the current Workers Comp system in California. Instead of explaining the bills, I included the veto memos from the Governor to the California Senate and State Assembly.

Governator Says NO To WCIRB 30% Increase On Workers Comp Rates

Governator Says No To WCIRB 30% Increase The governator says no to WCIRB 30% increase in pure premium rates.   I was surprised to see this one. I understand that Governor Schwarzenegger has always been as pro-business as possible. I cannot remember when he has offered any input into a recommended

Lookback Period California Workers Comp System Is Shorting Employers

Shorting Employers – California Workers Comp System Lookback Period  According to the California Workers Comp System rules,  the employers are being shorted.  We have been very fortunate to have a large amount of our premium and reserve review services in California. I feel the employers in the state are not necessarily

Most Expensive Workers Compensation Classification Codes California

Most Expensive Workers Compensation Classification Codes California Version For the most expensive Workers Compensation classification codes California seems to be the highest in the US.   In performing recent premium audits for California employers, I decided to check out which type of employers paid the most for workers compensation coverage

Insurance Commissioner @ California Says 27 Ways To Cut Comp Costs

CA Insurance Commissioner  – 27 Recommendations For Cutting Comp Costs CA Insurance Commissioner issues recommendations to cut WC costs. After rejecting any increase in the pure premium rates for California this week, Commissioner Steve Poizner issued a proclamation citing 27 ways to cut Workers Comp Costs in CA. A summary of

California’s Complex Workers Comp Situation Deepens With Rate Increase

California’s Complex Workers Comp Situation Deepens California’s complex Workers Comp situation deepens with a recommendation by  the WCIRB.I had posted a few week ago regarding the 24%+ rate increase that was recommended by California’s WCIRB (Workers Compensation Insurance Rating Bureau). There has been a large amount of discussion in the

California Workers Comp System – Possible Changes Coming Soon

California Workers Comp System Upcoming Changes California has performed well in finding ways to control their runaway Workers Compensation system.  As I predicted a few years ago, the California Workers Comp system would see the return of insurers once the environment stabilized enough that carriers would be able to underwrite Workers

California Workers Comp Policies Have Disadvantage

California Workers Comp Policies Have Built in Disadvantage California Workers Comp policies have a built-in disadvantage when compared to other states. California has changed their rating rules quite often over the last few years. After attending many of the WCIRB conferences, I noticed that the CA rules for rating Workers

Can California’s WC Judicial System Go Paperless Without Crashing System

CA Workers Comp Judicial System = Paperless  Will California’s Workers Comp judicial system go paperless?  Is the update/upgrade going to be the funds and time invested?  One of the goals of many Workers Comp carriers and TPA’s is to be totally paperless.  Being totally paperless may not solve as many

California Workers Comp Reform Blog Reader Question

California Workers Comp Reform What do you see for the future of the California Workers Comp Reform System? I think the applicants’ attorneys are going to try to penetrate some of the new laws enacted with Senate Bill 899 by numerous appeals. I am not sure they will be successful.

California Workers Compensation Crisis Question

Question – The California Workers Compensation Crisis Our blog readers sent in this question on the California Workers Compensation Crisis.   This is a timely question.  I thought I would answer the question now. Workers Comp Crisis – What happened to it and what settled everything down in the state with

J&L Premium Review Services – California Reader Question

California Reader Question – Can J&L Premium Review Services Work Here? A California reader had a great question.  Is California a tougher state than other states for  J&L premium review services? We have heard this question often over the past five years. Fortunately, we have aided employers in recovering premiums

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