by David Schek | Mar 24, 2015 | Professional Employer Organization (PEO), Workers Comp, Workers' Compensation Insurance
It has been an inescapable topic ever since the investigative outfit, Pro Publica, published its piece on workers’ compensation “The Demolition of Workers’ Comp.” Pro Publica concludes that states’ workers’ comp systems have slashed benefits and medical care to injured workers, while increasing insurance carrier profits. The piece has received praise and criticism from all quarters. Does it portend a change in workers’ comp —perhaps to a federal system?
A federal system is a bad idea for a number of reasons, not least of which is a cumbersome bureaucracy. States also have different industries and populations. For example, farm labor is huge in California, but in other states, it’s oil and gas. Costs related to safety and treatment will vary depending on these factors. These affect the premiums of staffing firms and their client employers. The no fault system, or “grand bargain”–is between employers and workers. It’s not between workers and lawyers or employers and insurance companies. It doesn’t need federalization, it needs enforcement. Preventing profiteering and re-defining the scope of injuries to address the ever growing list of health and workplace conditions is a start.
But for now, safety and adherence to workers’ comp rules and regulations will ensure staffing firms are paying adequate premiums and what’s medically necessary to get injured workers back on their feet. A program such as a Professional Employer Organization (PEO) can help.
Please call us for a FREE workers’ compensation quote at 202-302-1212. Or visit us as www.StaffingCompSolutions.com.
All the best
David Schek
President-Work Comp Staffing Solutions
Over 25 Years of Staffing Workers Compensation Experience
by David Schek | Mar 17, 2015 | Affordable Care Act, Healthcare Insurance, Professional Employer Organization (PEO), Workers Comp, Workers' Compensation Insurance
There may more unintended consequences of the Affordable Care Act on employers, including staffing companies, if workers’ comp experts are to be believed. According to recent research by the Massachusetts-based Workers’ Compensation Research Institute (WCRI), the Accountable Care Organizations (ACO) created by the ACA are driving a lot of group health care cases into the workers’ comp system. As is usually the case, money is the primary incentive. Workers’ comp pays higher rates than group health, so why wouldn’t a provider want to shift non-work related injuries to workers’ comp?
WCRI studies show this is happening, especially with soft tissue injuries such as sprains. It’s also more likely to happen in states with a greater number of capitated health plans. ACOs use the capitated pay model. If ACOs gain popularity and these cost shifts continue to happen, staffing companies could see an increase in their workers’ comp rates.
Even though it will be hard to control how physicians classify injuries, staffing companies should pay close attention to their work injury reporting and claims handling, so they can rebut any doctor’s finding that says an injury is work-related when it was not. This latest development makes it all the more important to have an experienced well-staffed back office. A Professional Employer Organization (PEO) can help.
Please call us for a FREE workers’ compensation quote at 202-302-1212. Or visit us as www.StaffingCompSolutions.com.
All the best
David Schek
President-Work Comp Staffing Solutions
Over 25 Years of Staffing Workers Compensation Experience.
by David Schek | Mar 10, 2015 | Professional Employer Organization (PEO)
Even though it hasn’t been much in the news, the U.S. Congress re-introduced the Payroll Fraud Prevention Act of 2014. Since re-introduction in May, there have been several high profile criminal cases of misclassification by staffing firms to avoid paying workers’ comp and legislative attempts by states to regulate the use of independent contractors. If the legislation passes, staffing firms and employers that use temporary workers will face scrutiny and fines at the federal level for misclassification.
Should federal regulations be put in place, Professional Employer Organizations (PEO) are equipped to handle the changes. With the use of temporary employees expected to rise by 13% in the next five years, it behooves staffing firms to take the following the steps.
- Go back over and update policies related to the classifications of all workers’ you supply. The proper risks determine your workers’ comp exposure.
- Properly define temporary employees and independent contractors and keep the two separate, especially if you’re the employer of record.
- Make sure you’re allowed by state laws to provide independent contractors. You are jointly responsible for providing workers’ compensation in some states, regardless.
Please call us for a FREE workers’ compensation quote at 202-302-1212. Or visit us at www.StaffingCompSolutions.com.
All the best
David Schek
President-Work Comp Staffing Solutions
Over 25 Years of Staffing Workers Compensation Experience
by David Schek | Mar 3, 2015 | Workers Comp, Workers' Compensation Insurance
Staffing firms may have to adjust to several changes in state workers’ comp systems. If a bill passes in Tennessee, it would be the third state along with Texas and Oklahoma to allow employers to set up their own workers’ comp programs. Attorneys are challenging Oklahoma’s opt-out law, which only took effect last year. Tennessee’s law would allow an employee to file a lawsuit. Both Connecticut and Arizona are debating bills that would cover emotional and mental distress and post-traumatic stress disorder.
If these bills pass, staffing firms will need to pay careful attention to how they will affect the cost of their workers’ comp coverage and the kinds of risks they take on. Arizona’s PTSD bill only applies to police and firefighters, but it could set a precedent for other types PTSD in the workplace. Connecticut’s bill targets employees with emotional fallout from “extreme workplace violence.” It will not only increase costs for staffing firms, temporary employees who suffer from this distress will likely require special accommodations.
Should these laws come to fruition, a Professional Employer Organization (PEO), can sort out the tangled web of workers’ comp rules and regulations. Please call us for a FREE workers’ compensation quote at 202-302-1212. Or visit us as www.StaffingCompSolutions.com.
All the best
David Schek
President-Work Comp Staffing Solutions
Over 25 Years of Staffing Workers Compensation Experience.
by David Schek | Feb 24, 2015 | Professional Employer Organization (PEO), Workers Comp, Workers' Compensation Insurance
Staffing firms have many options for their workers’ comp insurance including direct carriers, state funds large deductible policies, and professional employer organizations (PEOs). It’s been noted in the industry that a large deductible policy or guaranteed loss program is preferable, but that is frequently not the case.
If you don’t have a “mature” staffing company with a dedicated risk management program and a chief financial officer in the back office to determine how much risk you can take, a PEO is a much better option. Workers’ comp insurance is one of the biggest expenses a staffing company has, and claims can be costly in time and money. PEOs have low deductibles and are affordable.
As more employers use temporary employees, there are small staffing firms popping up to pick of the slack in key areas. And a dedicated back office to ascertain risk and a strong balance sheet is usually not something they have. PEOs can handle all the staffing firm back office functions associated with workers’ comp requirements, until they can wrap their arms around the business. Once they’re in a stronger financial situation, they can consider other options.
Please call us for a FREE workers’ compensation quote at 202-302-1212. Or visit us as www.StaffingCompSolutions.com.
All the best
David Schek
President-Work Comp Staffing Solutions
Over 25 Years of Staffing Workers Compensation Experience.
Page 1,345 of 1,378« First«...102030...1,3431,3441,3451,3461,347...1,3501,3601,370...»Last »
