by David Schek | Jan 27, 2015 | Professional Employer Organization (PEO), Workers Comp, Workers' Compensation Insurance
Injuries related to lifting, pushing, pulling and slips and falls are a major source of injuries and comprise many claims. Proper handling ensures that only “real” claims of injured workers receive treatment and benefits. Fraudulent workers compensation claims are reduced and eliminated. Getting your carrier or, better yet, a Professional Employer Organization (PEO) to keep track of and meet the basic requirements will prevent delays and lawsuits. Here are some tips staffing agencies should follow.
- Maintain a checklist of mandatory information to include on a claim and provide it to each claims adjuster
- Interview the employee immediately and thoroughly. Find out how and when the injury occurred. This is important if it’s a strain or sprain and the employee misses work. There may be a pre-existing injury that’s been re-aggravated.
- The staffing agency needs to make all employees aware of their rights and responsibilities under workers’ comp law. Requirements differ by state, and the burden is on the employer to follow the law.
- Keep claim loads manageable. It’s easy for claims adjusters to get overloaded, and that’s when mistakes are made.
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 | Jan 20, 2015 | Professional Employer Organization (PEO), Workers Comp, Workers' Compensation Insurance
Although it has been discussed frequently in workers’ comp circles, the cost of using off label drugs to treat workers’ comp injuries is a practice that continues to thrive, despite states attempts to draw attention to it. It’s an industry that continues to cost employers over $1 billion a year. Besides the cost it’s dangerous, especially in pain management. Some drugs intended for Stage four cancer patients are being used to treat back and joint pain with no proof that they provide any benefit. In fact because they’re powerful opioids, they may do more harm by leading to addiction.
Indemnity claims are another cause for concern. While they’re going down in most states, California being the exception, injuries that result in lost wages and permanent disability still cost employers more in higher workers’ comp premiums. In the current economy insurance experts point out that cottage industries are cropping up that get injured workers on disability, as an acceptable alternative to working.
This has serious consequences for staffing as more and more companies rely on temporary employees. Emphasizing safety and managing the costs of workers’ compensation through a traditional workers’ comp carrier, or better yet a professional employer organization (PEO), should be a top priority if these trends continue.
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 | Jan 13, 2015 | Manufacturers, Professional Employer Organization (PEO)
The good news is that manufacturers will continue to make use of temporary employees, until it makes economic sense to hire full time. As a result, staffing agencies will face increasing scrutiny from OSHA. You can expect state agencies to follow suit. There have been several recent accounts of temporary workers suffering grievous injuries on the job and having their comp rates sky rocket. One such incident included a temporary employee who had been on the job a mere 12 days when his arm was crushed in a packaging machine at a plastic bottle manufacturer. The result was a permanent disability.
In this case OSHA cited and fined the client employer, but an inspection of the staffing agency did not result in any citations. (But you can bet their work comp rates dramatically increased) You cannot be complacent regarding your obligations to provide qualified personnel or meet all the requirements for workers’ compensation and safety reporting. Back office administration requirements will fall heaviest on smaller firms as the demand for temporary workers increases.
It would be a good time to weigh your coverage options, in terms of who can provide the best service, depending on volume of employees and class codes. A Professional Employer Organization (PEO) may be your best option if your back office needs more experience and lower rates than your current carrier can provide.
Please call us for a FREE workers’ compensation quote at 202-302-1212. Or visit us as www.StaffingCompSolutions.com
Al the best
David Schek
President
StaffingCompSolutions.com
25 Years Experience Finding Workers Compensation Solutions for Small and Medium Size Staffing Companies.
by David Schek | Sep 8, 2014 | Affordable Care Act, Healthcare Insurance, News, Professional Employer Organization (PEO)
Almost every staffing owner I speak to these days wants to know how the Affordable Care Act (aka ACA –aka Obamacare) will impact their permanent and temporary employees. And of course their bottom line. Given the ongoing complexity of the law, many are considering hiring more administrative staff to educate employees or to retain an employment lawyer just to answer all the questions that will arise on a daily basis starting January 1.
While some companies are reluctantly looking to hire more permanent administrative staff these days to manage Obamacare, I recommend that many companies consider partnering with Professional Employer Organization (PEO) or Administrative Service Organization (ASO) to help them handle the implementation of this new complex law.
Finally, below is Q and A on ACA. This is a good example of an informational document, that while well meaning, seems to raise more questions than it answers. It is a good example why partnering with a PEO or ASO in 2015 – 2016 to help manage the implementation of the ACA makes a lot of sense.
If employees haven’t come to you with questions about the Affordable Care Act’s (ACA) affect on them, get ready … they’re coming. Want to know what they’re going to ask?
In a recent survey to gauge how single-employer plans are being affected by the ACA, the International Foundation of Employee Benefit Plans, a nonprofit research and education organization, asked employers to submit the most common questions their HR and benefits staff have been receiving from employees about the law.
More than 600 employers responded to the query.
Here are the top 10 questions employers were approached with — along with ways you can respond:
- How do the exchanges work? Am I eligible? Are they free? Could I qualify for a subsidy? How does exchange coverage compare to my current coverage?
Answer: The exchanges act as an insurance agent of sorts, allowing employees to shop for plans that meet their needs. And yes, everyone can to use them. But whether or not employees get a subsidy depends upon a number of things — like whether or not you offer them coverage, the level of that coverage and their income.
- How does the law affect me? Do I need to do anything?
Answer: The biggest effect is that individuals are now forced to have insurance or pay a penalty. And if you’re offering them coverage that meets the law’s minimum requirements, they don’t have to do anything.
- What will this cost me? Why are my costs going up?
Answer: Just about the only cost figures you could reasonably present them with are your health plan’s premiums and cost-sharing information. As for why costs are increasing, it’s because the cost to treat people in general is increasing, and insurers are accounting for that.
- Is the company planning to drop coverage?
Answer: Only you can say for sure.
- How will our benefits change? Are the changes because of health reform?
Answer: Chances are your plan underwent some changes over the past year — or you’re planning changes for 2015. Be prepared to explain what they are and the reasons behind them.
- Can my child stay on the plan longer?
Answer: Starting in 2010, the health reform law mandated that plans’ coverage to dependent children be extended until they turn 26. But beyond that, nothing has changed in this area as far as federal law is concerned.
- Do I have to get coverage if I don’t have it now? When will there be an open enrollment opportunity?
Answer: Again, individuals are required by law to obtain health coverage or pay a penalty. The exchanges will open again this November. You’ll also want to be prepared to share your plan’s next open enrollment period begins.
- Will I have an average of 30 hours per week and qualify for benefits in 2015?
Answer: If they don’t qualify for your company-sponsored plan, they can always obtain health coverage on the exchanges in November.
- Are we dropping spousal/dependent coverage?
Answer: Again, by law, dependent children must be allowed to remain on a parent’s plan until age 26. However, employer plans are not required to cover spouses. But be prepared to share whether you will or not.
- How does the law impact the future of the company?
Answer: This is a broad question, and one only you can answer. But if you don’t plan to make any drastic changes as a result of the law, share that with employees. It’ll help put them at ease.
Please feel free to contact me at david@StaffingCompSolutions.com and visit our web site at www.StaffingCompSolutions.com. I will be glad to discuss how a PEO or ASO can help you manage the implementation of this program in a very cost effective manner.
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
ASA Exhibitor 2014 Conference Booth 1123
California Staffing Association Member
StaffingCompSolutions.com—- Workers Compensation Specialists and Staffing Business Consultants For Over 25 Years.
by David Schek | Jun 24, 2014 | Professional Employer Organization (PEO), Workers' Compensation Insurance
I recently quoted a 10M Light Industrial staffing company that had been without workers compensation for about 90 days when they called Work Comp Staffing Solutions. They had been cancelled by Travelers Insurance company in March, and had been shopping for a new policy with their P & C Agent since then. Their losses were about 250K a year on a 500K annual premium. Many claims were still open.
After 7 days, Work Comp Staffing Solutions found a Professional Employer Organization (PEO) quote for the company. The owner felt that, despite the PEO’s rates/terms being favorable (pay as you go and no deductible) , they would eventually find a direct-cheaper policy– so they were told by their P & C Agent who had originally secured the Travelers policy. Even though they had been shopping for the last 90 days.
The owner had incredible difficulty accepting the fact that direct carriers do not want most staffing risks these days. She could not understand that the staffing work comp market had changed greatly since they got their original policy about 2 years earlier.
Now the owner is clearly putting her company at risk each day on wishful (and I would say very unrealistic) thinking.
If you find yourself without compensation, or your traditional Insurance Agent unresponsive about today’s market conditions, call me and hopefully I can help. You can reach me at david@StaffingCompSolutions.com and www.StaffingCompSolutions.com
All the best
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
ASA Exhibitor for Annual 2014 Conference
California Staffing Association Member
StaffingCompSolutions.com—- Workers Compensation Specialists and Staffing Business Consultants For Over 25 Years.
by David Schek | May 19, 2014 | Professional Employer Organization (PEO), Workers Comp, Workers' Compensation Insurance
When a staffing company partners with a Professional Employer Organization (PEO) making the right call about new class codes is headache free. PEO’s have experts on staff that will help you define the position accurately, in order to select the optimum code. Also by using a PEO, the staffing company does not have anymore audits because now they occur between the PEO and the carrier.
Staffing companies that use their State Funds for workers compensation, know that picking the wrong code, can raise red flags during an audit– costing the staffing company tens of thousands of dollars in extra fees and penalties. PEO’s help you avoid these costly and aggravating mis coding mistakes that frequently occur during a workers compensation audit..
Here is a wonderful article by Mari Kautzman of Temp Works about this very subject.
http://staffingtalk.com/workers-comp-insurance-headaches/
Please feel free to contact me at david@StaffingCompSolutions.com for a FREE workers compensation quote. Also visit us at www.StaffingCompSolutions.com to review other workers compensation solutions for your staffing company that Work Comp Staffing Solutions can help you with.
All the best
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
ASA Exhibitor for Annual 2014 Conference
California Staffing Association Member
StaffingCompSolutions.com —- Workers Compensation Specialists and Staffing Business Consultants For Over 20 Years.
