Workers' Compensation

Thursday, February 10, 2011

AIG Reaches For Its Wallet to Cover $4.1 Billion in Work Comp Claims and Asbestos Liabilities

The American International Group (AIG), the huge insurance company that the US Government bailed out financially, is still hard pressed to raise funds to cover on going claims. AIG has announced that it will need to raise another $4.1 Billion dollars to cover such costs as primary and excess workers' compensation claims and asbestos liability claims.

AIG's long and troubled history was the subject of investigative reporting in the Academy Award nominated film, Inside Job. The Many factors have impact on an insurance company's solvency including the ability to collect premiums in a down economic cycle, the investment of the premiums collected and colateral bad investments the have a massive economic impact of the financial worth of the company in general.

Workers' compensation claims continue despite a low employment cycle. Latent diseases, such as asbestos related lung cancer, asbestosis and mesothelioma, may be dormant for decades before manifesting into a chronic and terminal medical condition.

The industry continues to struggle on how workers' compensation should be employed to insure industries and employers from these condition. Originally the workers' compensation acts did not cover occupational conditions such as silicosis or asbestosis. In the 1950s acts were amended, at industries insistence to bring these occupational conditions under the umbrella of coverage and shield employers from civil lawsuits. With the expansion of products liability claims, based on the intentional concealment of information of the hazards of these conditions, as well as low economic recoveries from struggling workers' compensation systems put the boat back into the bottle, "the longest running tort", asbestos litigation, was born.

Industry continues to try to put the genie back into the bottle, which is reflected in the latest attempt in Missouri to bar liability claims against employers and co-workers. One of the incentives of a workers' compensation program is to prevent industrial accidents, but the system continues to struggle both economically and procedurally in achieving that objective.

The need for AIG to raise additional cash to pay claims raises a concern as to whether premium dollars to pay claims are being adequately protected in the first place, and whether those premiums ared being directed to injured workers and victims of occupational illness. Instead of trying to figure how to further restrict the payment of benefits, perhaps more attention should be paid to making a safer workplace by banning asbestos use, and providing more convenience access through universal medical care.

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Public Meeting on Implementation of the Zadroga 9/11 Health and Compensation Act

The National Institute for Occupational Safety and Health (NIOSH) will host a public meeting on March 3 in New York City to receive comments from the public on implementing the provisions of the James Zadroga 9/11 Health and Compensation Act of 2010 (Public Law 111-347).

NIOSH will convene the public meeting in response to a request by Reps. Carolyn B. Maloney (D-NY), Jerrold Nadler (D-NY), and Peter T. King (R-NY), the primary sponsors of the James Zadroga 9/11 Health and Compensation Act of 2010 in the U.S. House of Representatives. The meeting will be held from 9:00 a.m. to 4:45 p.m., Eastern Time, at the Jacob K. Javits Federal Building, 26 Federal Plaza, Broadway entrance, 6th Floor, Conference Room A/B, New York, N.Y. 10278.

The meeting is open to the public, limited by the space available. The meeting space accommodates approximately 300 people, and will be available on a first-come-first-served basis. In addition, there will be an audio conference setup for those who cannot attend in person. The toll-free call-in number is 1-800-619-8873; pass code 8693287.

The James Zadroga 9/11 Health and Compensation Act of 2010 established the World Trade Center Health Program within the U.S. Department of Health and Human Services, of which NIOSH is part. Comments from the public will help the Federal government in developing a plan to implement the Act by gaining perspectives from interested parties on ways to meet the Act's requirements.

The Act's requirements include:

Medical monitoring for responders who were likely to have been exposed to airborne toxins that were released, or to other hazards, as a result of the September 11, 2001, terrorist attacks.
Initial health evaluation for survivors.
Follow-up monitoring and treatment for responders and survivors related to World Trade Center-related health conditions.
Education and outreach to potentially eligible individuals.
Clinical data collection and analysis.
Research on health conditions.

A copy of the full Act is available at www.cdc.gov/niosh/topics/wtc/hr847.html. A notice of the public meeting with further information on attendance and registration is scheduled to be posted in the Federal Register on Feb. 10.

For over 3 decades the Law Offices of Jon L. Gelman 1.973.696.7900 jon@gelmans.com have been representing injured workers and their families who have suffered asbestos related disease. Please contact our office if you require assistance in filing a claim under the newly enacted James Zadroga 9/11 Health and Compensation Act.

Tuesday, February 8, 2011

Facebook Becomes a Questionable Friend of Workers Compensation

Social networking’s popularity has become a two-edged sword as a tool in the management, investigation, and disposition of workers’ compensation claims. Over the last several years there has been an exponential explosion in the use of this technology on the Internet. The challenge to properly access and effectively utilize the electronically stored information [ESI] is resulting in procedural and ethical ramifications for the workers’ compensation community.

Complete article appears as a guest blog on: PropertyCasualty360

Proposal to Eliminate Participation of Lawyers

A proposal has been made by the Commission of Labor in Oklahoma, Mark Costello, to eliminate the participation of lawyers at the hearing level in workers' compensation matters. The reform has been suggested to save money and put more money on the hands of the injured workers.

Costello, a local businessman, was elected last November on the Republican ticket. He founded American Computer & Telephone (AMCAT) that he sold in 1991.

McCullough’s 279-page measure, House Bill 1224, would create a workers’ compensation commission with three members: a physician, an attorney and an industry professional. Administrative law judges would preside over claims hearings.

Wednesday, February 2, 2011

The Lingering Consequences of Smoke in the Workplace

Countless studies have confirmed the health risks associated with smoking and secondhand smoke exposure. Now, new research is bringing attention to potential health risks associated with so-called thirdhand smoke, the mixture of tobacco smoke toxicants that lingers in the air and on surfaces after the smoke itself dissipates.

An article in the current issue of Environmental Health Perspectives takes a look at the state of the science on thirdhand smoke and discusses why some researchers believe it is a cause for concern.

California Report Makes Recommendations To Curtail Lien Claimants

A California workers' compensation report has made sweeping recommendations to reduce and manage the filling of liens in pending cases. One recommendation is to charge a $100 filing fee to be paid by a lien claimant.

The California workers compensation court has become a collection agency for unpaid bills. This issue is mirrored throughout the US as medical costs have soared and a single payer system has not yet been enacted as in European countries.

The study commission concluded that the volume of liens alone amounts to "coercion to settle." The report reveals that 35% of the present court calendar now involves liens. The cost to employers amounts to an estimated $200 Million annually. Over 450,000 liens are predicted to be filed this yea alone. Medical liens represent the vast majority of the liens filed in compensation cases.

Excluded from consideration in he report are Federal medical programs such a Medicare (Medicare Secondary Benefit claims), VA Medical claims and TRICARE (Military Health Plans.). Those claims can only be resolved only by a tribunal cloaked with Federal jurisdiction.

Tuesday, February 1, 2011

WR Grace Asbestos Bankruptcy Plan Receives Initial Approval

A Delaware Bankruptcy Judge has approved a reorganization plan for the former asbestos manufacturer, WR Grace. The company sought bankruptcy protection in 2001 from asbestos liabilities. The reorganization plan provides for the payment of benefits to victims of asbestos related disease.The proposed plan now must be reviewed by a US District Court Judge for final approval.

Asbestos exposure results in progressive and latent diseases including: asbestosis, lung cancer and mesothelioma. There is no known cure for mesothelioma, a rare and fatal disease. The use of asbestos is not yet banned in the US.

WR Grace manufactured asbestos insulation, Zonolite, and other asbestos containing products . For many years it mined asbestos in Libby, Montana, and left behind a legacy of disease to its former employees and residence of the mining community. Last year, the US Congress passed and the President signed, a national health care bill that provided medical coverage under Medicare for those who worked and/or resided in Libby, Montana.

Once the US District Court finalizes approval of the plan, the present and futures asbestos victims trusts will begin processing claims for payment.

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