Honoring Human Dignity in Workers' Compensation

In accepting the Democratic nomination for presidency of the United States, Barack Obama declared that he envisioned “….an economy that honors the dignity of work.” The State legislatures had many goals in mind when they crafted a system for compensating injured workers.

One of the goals was to relieve the injured worker of the burden of paying for their own medical care. The pendulum is swinging back to the 1911 era when the majority of workers are no longer covered for medical care. Uncompensated medical care is now a $42.9 Billion burden on governmental programs.

Generally speaking workers’ compensation was to provide a summary, efficient and economical administrative system of benefits for injured workers. One of the program’s major purposes was to avoid the tedious, costly and unpredictable results of the civil justice system. State laws created a system of a certain and reliable flow of benefits which gave support and dignity to the workforce that complemented their strong work ethic.

As the workers’ compensation expanded, salaries, pensions and benefits became unstable. The process became entangled into legalities and the assertion of a growing number of defenses became more troublesome. Consequently the system became entangled in the tedium of collateral issues and escalating delay.

This progression of events impacted the system with resulting frustration and the workers with a loss of self-esteem. It is time, that on this Labor Day, we reflect on the past and follow the vision of the future and embrace the concept, that the dignity of work and workers, should be honored.

NY Lowers Premiums 25% in Two Years!

Governor Patterson announced that premiums have been lowered 25% for workers' compensation in New York over the last two years. Just how did NY do it?

They claim reduced claims, reduced administrative costs and an increase in weekly benenfits for a few. What they didn't mention is that NY is probably delivering lower benefits with slower service than before.

The ultimate consequence is that line for benefits becomes longer and the ultimate benefit is still capped at an incredibly low rate of $550. per week. Additionally, the NY State system is now cracking down on liberal impairment ratings and medical providers, modalities and drugs for injured worker.

The New York Alliance for Injured Workers declared, "The admirable goal of the 'rocket docket' regs was to speed the resolution of disputed workers' compensation claims. However, the new regs would do just the opposite, and cause further delay in the in receipt of benefits by injured workers."

Lower premiums translate to a lower performance and benefits to injured workers. A studious change evaluation of changes should be required in advance of change is warranted. NY must become more relastic of the consequence of changes.

Rate Your Workers' Compensation Doctor?

The US Department of Health and Human Services (HHS) has initiated serveral programs to improve the delivery of medical care. HHS no longer wants to pay hospitals for "medical mistakes" and has now announced a program to rate the medical facilities.

“CMS’ goal for updating and enhancing the Hospital Compare Web site is to provide usable and accurate information about hospital performance to providers and communities that will encourage hospitals to excel in the quality of care they provide,” said CMS Acting Administrator Kerry Weems. “With these new enhancements, consumers and health care providers will be able to look at individual hospital mortality scores. We hope that this new information will cement the Web site’s role as a key driver in improving the quality and reliability of care in the nation’s hospitals.”

This interesting concept is one that may interest the workers' compensation insurance companies as well as governmental agencies that regulate the programs. The opportunity to provide a comparison of services may likely lead to the delivery of better medical care for injured workers.

Cosmetic Workers Suffer Exposures at Work

Nail salon workers are now reporting an increase in symptoms frequently sought in serious occupational exposure claims. In a series of news articles appearing in West coast publications, it has been reported that nail salon workers have been exposed to hazardous chemicals in cosmetic products.

Increasing evidence has become available that reflects that cosmetic workers had been exposed to hazardous and carcinogenic substances, in an unregulated environment, for prolonged periods of time, that may result in occupational asthma conditions and even breast cancer.

"Every day, nail salon workers are exposed to a wide array of carcinogenic chemicals," said Migden, a San Francisco Democrat chair of the Senate's Labor and Industrial Relations Committee. It has been reported that some of the substances used in US salon have been banned already in Europe.

The American Public Health Association will be holding some additional seminars on this subject this fall directed their attention to increase cancers that have been reported by former cosmetic workers. The APHA reported that 15% of the salon workers that were surveyed presented with complaints similar to asthma, eczema, and hives and 30% claimed they had hay fever.

Fatal Injuries Decline to The Lowest Level in 36 Years

The US Bureau of Labor Statistics has announced that that number of fatal on the job injuries has dramatically declined dramatically. It is now at the lowest level in any year since it began reporting statistics in 1992.

“Filling the Gaps” Did Not Accelerate the Statute of Limitations

In a novel decision the NJ Appellate Division decided the custom the workers’ compensation insurance company of “filling the gaps” between periods of temporary disability with permanent disability payments was an unauthorized acceleration and did not step up the final date of payments for purposes of the statue of limitations. The petitioner was permitted to file an application to review and modify his former award for increased benefits two years from the payment of benefits that would have been paid had they not been accelerated by the insurance carrier. Pollock v. Tri State Motor Transit, Inc. , No. A-6224-06T1, NJ App. Div. Decided August 15, 2008.

http://www.judiciary.state.nj.us/opinions/a6224-06.pdf

2009 NJ Workers’ Compensation Benefit Will Amount to $19.32 Per Hour

The 2009 workers’ compensation benefit rate for 2009 has been announced and it will increase to a maximum of $19.32 per hour or the equivalent of $40,196. per year. NJ bases its rate on only 70% of the SAWW.

• NJ SAWW $1030

• NJ SAWW Hourly $25.75/hr

• 2009 Annual Benefit 75% SAWW of the 2008 SAWW $773.00

• 2009 Maximum Annual SAWW cap = $19.32/hour

• $19.32 x 40 x 52 = $40,196.00 per year

Where NJ Stands in Comparison to Other States
13 States have SAWW Caps that are higher than 100% of the SAWW. Iowa has 200%. 20 States, including close or nearly adjacent States/Federal District (Pennsylvania, Rhode Island, Connecticut, Massachusetts and District of Columbia.), have 100%.

Of the States with fixed dollar caps on benefits, 33 States have caps that are 100% or greater than New Jersey and only 6 states have dollar caps lower than NJ.

What an Increase of the “CAP” Would Cost
Some proponents have sough a legislative change in NJ to increase the benefit payment, It has been estimated that in increase in the cap from merely from 75% to 80% would cost no more that a 1% percent increase in total cost and therefore an increase to 100% would be no more than 5% or about $100 million in total premium dollars.