Quote of the day
"We conclude that fee schedules by themselves have a very limited ability to bring workers' comp utilization closer to group health levels."
NCCI Holdings Inc. study
Arizona High Court Rules Against State Farm in Underinsured Motorist Case
A ruling last week by the Arizona Supreme Court will block insurance companies from lowering underinsured motorist payments to injured individuals who have received workers’ compensation. The court ruled that State Farm improperly cut a sheriff deputy’s award for her on-duty vehicle crash, because workers’ comp is not liability insurance and the underinsured motorist law expressly forbade it even if the insurance policy allowed it. By AP via Arizona Daily Sun (Tucson)
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South Dakota Panel Rejects Drugs and Alcohol Presumption Shift
The South Dakota House Judiciary Committee rejects an attempt to revise the state’s workers’ compensation law to put the burden on injured employees who drink or use illegal drugs to prove that such substances were not substantial factors in causing their injuries. Currently, employers have the burden of showing that workers’ injuries stem from drug or alcohol use. By AP via KXMB-TV
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N.D. Legislator: Panel Will Oversee WSI Consultants
North Dakota’s House majority leader—Rick Berg, a Fargo Republican—says a legislative committee will review the work of two consultants who have been hired to investigate management and claims-handling problems at the state workers’ compensation agency Workforce Safety and Insurance.
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Go to the full story by Dave Kolpack, AP via Dickinson Press
Pennsylvania Employers Expect Significant Rate Cut
Workers’ compensation rates in Pennsylvania are expected to drop an average of more than 10 percent starting April 1, with some industry sectors potentially seeing decreases of more than 20 percent, according to new recommendations by the Pennsylvania Compensation Rating Bureau. Pittsburgh Business Times
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Study: State Fee Schedules Have Limited Effect on Utilization Levels
State workers’ compensation fee schedules are effective in controlling medical costs, but have a limited ability to bring workers’ comp utilization levels for similar injuries closer to group health levels, according to a study released last week by NCCI Holdings Inc. Introducing fee schedules can play a significant role in reforming workers’ comp systems, NCCI reports. By Roberto Ceniceros, Business Insurance
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Yukon WCB Urges Employers to Join Incentive Program
Yukon employers who are concerned about rising workers’ compensation rates should consider a new incentive program that encourages workplace safety, says the chief of the Yukon Workers’ Compensation Health and Safety Board. CBC
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Kansas County Sees Fewer Injuries, Higher Costs
Harvey County, Kansas commissioners learn that the county will be paying more for workers’ compensation insurance in 2008, mostly due to a 3-percent salary increase, and despite fewer injuries in the road and bridge department. A county administrator says the death of a sheriff’s deputy in 2005 continues to affect the county’s experience rating. By Chad Frey, Newton Kansan
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Fast Growing FirstComp Enters Sunshine State Market
FirstComp Insurance opens a Tampa office, marking its entry into Florida as the state’s workers’ compensation insurance rates drop for the fifth consecutive year. By Janet Leiser, Tampa Bay Business Journal
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