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 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.
by David Schek | Feb 17, 2015 | Professional Employer Organization (PEO), Workers Comp, Workers' Compensation Insurance
Once an employer has confirmed that an injury arose out of employment, the workers’ comp carrier is supposed to pay the claim and work with employer and claimant to get the worker back to work quickly. Unfortunately this doesn’t always happen, if the injured workers don’t think they’re being treated fairly.
When injured workers think they are not getting the care they need or the benefits to which they are entitled, they call a lawyer. Lawyers can double and triple the cost of any claim and possibly increase the premiums your staffing firm pays. In some states, such as California, the law itself can be so byzantine that a lawyer is almost required. That doesn’t have to be the case with all or even most injuries. Here are some tips to avoid litigation.
- Maintain communication at all times. These are your employees and they are valuable. Check in with them on their case and care, and respond to their concerns and questions.
- Make sure benefits are being paid in a timely fashion and that the worker is getting all approved care including prescriptions paid for.
- Assure the injured worker that he will return to work and discuss how and when that will happen.
The laws regarding medical treatment, benefits and return to work requirements can differ by state. Professional Employer Organizations (PEOs) can keep track of the workers’ comp requirements helping provide a valuable source of information to your injured workers. 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 | Feb 10, 2015 | Professional Employer Organization (PEO), Workers Comp, Workers' Compensation Insurance
Recently in New Jersey, a family owned staffing company was busted for allegedly misreporting the number of employees in their staffing firm. In this case they underreported to the tune of $30 million. By doing this they failed to pay adequate workers’ comp premiums, leaving their most important asset, their employees, vulnerable. Here is how you can avoid this problem of misclassification.
- At the outset when you add new employees, make sure your employees are properly classified for workers’ comp.
- Monitor those classifications on a regular basis. They can change, which means you may need to pay more premiums.
- If you have multiple offices, keep track of the number of employees each one has. If they’re in multiple states, there may state laws with which you must comply.
Professional Employer Organizations (PEO) can help you keep track of all the legal requirements associated with your employees. Mistakes, even if unintentional, can cost you dearly. 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 | Feb 2, 2015 | Professional Employer Organization (PEO), Workers Comp, Workers' Compensation Insurance
Workers’ compensation insurance has a long tail. In other words, if one of your employees gets injured, the insurance company must set aside or “reserve” a certain amount of money to cover a workers’ comp claim until it is closed. How an insurance company reserves is a question staffing companies frequently asks me. It matters because a serious injury to one of your employees will require a higher reserve and will probably increase your rates or cause you to be cancelled by the company. Remember it may take a couple of years to settle the claim so while the claim in “open” your rates will be negatively impacted. Here are some factors carriers consider when evaluating claim reserves:
- Fee schedules and ceilings on care. Some states have fee schedules and limits on types of care, such as chiropractic. This tends to make the cost more predictable. Other states do not.
- Permanent and temporary disability and lifetime medical. These are expensive items for which to reserve. Some states are more generous than others for disability and formulas vary. Future medical is affected by a number of factors including age.
- Vocational rehabilitation. Depending on the severity of the injury, some kind of rehabilitation may be required, so an injured worker can return back to work. This requires expenses associated with accommodating the employee in the workplace or assistance in finding new employment.
- By knowing these factors, a professional employer organization (PEO) can give you an estimate on how much an injury will affect your experience modification.
Since Professional Employer Organizations (PEO) tend to work with you as a business partner (versus simply as an account on a profit loss statement) they will work hard with you to keep reserves to a minimum, and get your claims closed as soon as possible.
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.
