News Digest 8/28/2008

By: Rick Waldinger

Quote of the day

"Last year's historic agreement set the framework for workers compensation reform, but the savings are actually produced through the difficult work of developing and implementing the proposals."

New York Gov. David Paterson, in a news release

Go to the full story in the Daily Journal

New York Gov: Rates Will Go Down Again Next Year
Workers’ compensation insurance rates will decline again in 2009, according to N.Y. Gov. David Paterson. The rates will drop 5 percent from this year’s level while the maximum weekly benefit for workers rises from its current level of $550 a week.
Go to the full story by Jason Subik, Daily Journal (Schenectady)
Go to the full story in the Business Review (Albany)
Go to the full story in Business First of Buffalo
Go to the full story in EmpireStateNews.net

Good News for Sunshine State Employers
Florida workers’ compensation insurance rates may drop for a sixth year in a row. The National Council on Compensation Insurance has filed a request with the Florida Office of Insurance Regulation to reduce rates by an average 14.1 percent throughout the state, which could save Florida employers $465 million. Go to the full story By Anika Myers Palm, Orlando Sentinel
Go to the full story in the South Florida Business Journal

Former WSI Director Denies Charges
Former North Dakota workers’ compensation director Sandy Blunt pleads not guilty to two felony charges of misspending agency funds. Blunt is accused of giving $7,200 in illegal bonuses to three Workforce Safety and Insurance executives, and misspending $11,384 on meals and trips for state legislators, as well as restaurant meal cards, gifts and trinkets for agency employees.
Go to the full story by Dale Wetzel, AP via Fargo Forum [may require registration] Go to the full story in KXNet.com (Bismarck)

Company Won’t Renew as Third-Party Admin for Ohio Group
GatesMcDonald plans major staff cuts by next April, when a contract with the National Federation of Independent Business-Ohio runs out. The company withdrew its bid late last week to serve as a third-party administrator, having managed workers’ compensation and unemployment claims for the 10,000-employee group rating program the trade group sponsors for the past 17 years. By Matt Burns, Columbus Business First
Go to the Full Story…

NASI: Workers’ Comp, Medical Indemnity Payment Fell in 2006
The National Academy of Social Insurance releases a report showing that U.S. workers’ compensation medical and indemnity benefit payments declined 1.5% to $54.7 billion during 2006. By Roberto Ceniceros, Business Insurance
Go to the Full Story…

Commentary: Bay State Taxpayers Footing Bill for Nonsense
Andrea Traficanti, the Lawrence Department of Public Works employee who has collected workers’ compensation for nearly 20 months and claims she cannot work due to stress, a hostile work environment and harassment, needs to return to work at whatever job the city has available for her. Eagle-Tribune (North Andover, Mass.)
Go to the Full Story…

Connecticut Town Worker Arrested for Suspected Fraud
An employee with the town of Waterford, Conn., is arrested on charges he collected $7,500 in worker’s compensation benefits on a false claim, according to the Office of the Chief State’s Attorney. By Greg Smith, Norwich Bulletin
Go to the Full Story…

Waitress Charged with Illegally Selling Meds
A New York waitress is charged with workers’ compensation fraud for allegedly selling painkillers that she had been prescribed for work-related neck and back injuries. By Michael Zeigler, Rochester Democrat and Chronicle
Go to the Full Story…

Commentary: Show Me State Corrects Costly Error
In June, the Missouri legislature made a wise amendment and avoided a financial crisis in its workers’ compensation system. The crux of the potential crisis was a Missouri Supreme Court ruling that the workers’ compensation act’s Second Injury Fund served as a life insurance policy for a deceased employee’s dependents. By John D. Copeland, Springfield Business Journal
Go to the Full Story…