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Follow on Google News | Is the U.S. Worker’s Compensation System Being Dismantled?After a disabling accident, a worker at a Costco store in Texas could be paid $75K for losing the use of his or her hand. At Albertson’s food stores, in the same state, the price of that hand would be about $125,000. In states across the country
By: heather mccloskey What is happening to what we know as the Workers Compensation System? Governed by state guidelines, workers’ compensation is an insurance program funded by employers to provide rapid medical and financial benefits for workers injured on the job. Developing out of the rise in workplace injuries during the early Industrial Revolution, the grand bargain of workers’ comp programs developed to speed benefits to workers in exchange for their agreement not to sue employers for negligence. Today, workers’ compensation opt-out laws, in some states, give employers the chance to write their own rules. Opting out of workers’ compensation usually reduces workers’ compensation insurance premium rates, and allows employers to save money by taking control of the medical care of injured workers. What does workers’compensation reform look like for employers? Until 2004, the federal Department of Labor (DOL) monitored compliance of state workers’ compensation programs. According to ProPublica (https://www.propublica.org/ A recent segment on National Public Radio (NPR) (http://www.npr.org/ At the forefront of the movement is a Texas company called PartnerSource. CEO and lawyer Bill Minick believes states should be able to replace state workers’ compensation programs with their own policies—written in large part, by PartnerSource. Notes Mr. Minick, “We’re talking about reengineering one of the pillars of social justice that has not seen significant innovation in 100 years.” What are the advantages to Employers to use Opt-Out Programs? Besides cost savings on insurance premiums, the advantages to employers using opt-out (https://projects.propublica.org/ · Ability to define eligibility for injury benefits, designate available treatments, and dictate the duration of benefits · Freedom to choose the healthcare providers, or offer a restricted network · Ability to set limits on the type and use of medications · Easy ability to terminate, or simply not offer, certain disability benefits · Lower risk of litigation by enforcing mandatory arbitration How does opting out affect injured workers? The benefits of opting-out apply mostly to employers. In a fox guarding the henhouse scenario, companies that opt-out of workers’ compensation decide who gets what and for how long. With opt-out, employees face: · Limited medical care defined by the employer. Workers’ · Opt-out plans give employers the authority to dictate settlement—and settlement terms. Employees who do not agree lose their benefits. · Instead of a structured appeals process, employees can appeal to a committee set up, and run, by their employer. If an injured employee decides to sue, mandatory arbitration clauses may take effect. · Restrictive requirements mean injured employees must often report their injury by the end of their shift—instead of the usual 30 days allowed under traditional workers’ comp. For the public, the cost of long-term care of injured and disabled workers is being shifted to social programs like Social Security Disability Insurance (SSDI). A report from the Center for Economic and Policy Research (http://cepr.net/ On October 20, 2015, ten ranking members of the House of Representatives and Senate sent a letter (https://www.documentcloud.org/ We will be monitoring the federal investigation and update you as more information is released. For additional information or if you have questions contact McCloskey Partners, LLC. McCloskey Partners, LLC O: 215-716- W: http://www.mccloskeypartners.com/ End
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