Will New Jersey’s Injured Workers Continue to Silently Wait in Pain?

The NJ legislature is bogged down in controversy over what direction to take in order to respond to the State’s injured workers. While proposed administration legislation has passed through the Senate Labor Committee, the actual voices of the injured remain silent. No injured workers have yet testified before the legislature.

Without a master plan to address the issues raised in the Star Ledger series, the NJ Legislature is attempting to address specific issues and not considering some other thoughtful legislative proposals that have been pending for sometime. These include not only those outlined in my prior article introduced by Senator Sweeney and Assemblyman Cohen, but also A2846 and S785 which permits a COLA increase to benefits.

As the employers and insurance carriers continue to raise their voices, the silence of the injured workers is both eerie and foreboding.

CDC in Reviewing WCMSA Limits Review to One Life Expectancy Table

Effective July 1, 2008 the Centers for Medicare and Medicad (CMS) will exclusively use the Centers for Disease Control (CDC) Table 1 (Life Table for Total Population) when determining life expectancy in Workers’ Compensation Medicare Set-Asides (WCMSA) proposals. The directive was issued in a memo dated May 20, 2008.

Public Heath Advocates Form Committee to Ban Asbestos in America

"The most efficient way to eliminate asbestos- related diseases is to stop using all types of asbestos." The World Health Organization

Public health advocates, led by the Asbestos Disease Awareness Organization (ADAO) and The John McNamara Foundation, today announced the formation of the Committee to Ban Asbestos in America (CBAA). Asbestos kills more than 10,000 men, women and children every year. The National Center for Health Statistics (NCHS) of the Centers for Disease Control and Prevention (CDC) reported mesothelioma deaths increased from 2004 to 2005 in "Health, United States, 2007." Since first tracked in 1980, mesothelioma deaths have increased every year. "As recommended by the National Institute for Occupational Safety and Health (NIOSH) in 1976 the only way to prevent asbestos-related diseases is to ban its use, the CBAA supports language in a Committee Print before the House Energy & Commerce Subcommittee on Environment & Hazardous Materials," said Linda Reinstein, Chairperson of the Committee to Ban Asbestos in America. "We are calling on the U.S. Congress and the President to do the right thing and ban asbestos in America and fund critical medical programs. Doctors and scientists agree: asbestos is a carcinogen and that there is no safe level of exposure. Preventing asbestos exposure is the only way to eliminate asbestos caused diseases. Recent ADAO product testing confirmed asbestos is still found in consumer products including toys."

"Asbestos and the manufacturers of asbestos are responsible for creating the largest man made health crisis in this country," said TC McNamara, Founder of The John McNamara Foundation. "Asbestos went from being a miracle product to a serial killer which makes this legislation long overdue, but now is the time to ban asbestos in America."

http://www.banasbestos.us/

5TH ANNUAL THIS YEAR IN WORKERS’ COMP – THE TOP ISSUES & CASES

5TH ANNUAL THIS YEAR IN WORKERS’ COMP – THE TOP ISSUES & CASES
http://www.njicle.com/seminar.aspx?sid=558

Hear an expert analysis of key cases decided during the past year

Presented in cooperation with the NJSBA Workers’ Compensation Section

Tuesday, July 08, 2008 4:00 PM to 8:00 PMNew Jersey Law Center, New Brunswick / S1485d-14533

This fifth annual program features a panel of some of the most respected Workers' Conmpensation Judges and attorneys, who will review and provide insight on the top issues and cases that have emerged during the past year.

This fast-paced program will be packed with practical pointers that have proven successful in matters ranging from jurisdictional issues through coverage of employment. The program will expand your horizons and broaden your practice potential into expanding in developing areas of the law such as the Longshore Act, Defense Base Act claims, and actions involving New York jurisdiction, including 9/11 claims. Make plans to register today!

PROVEN STRATEGIES FOR DEALING WITH THE TOP ISSUES CONFRONTING TODAY’S WORKERS’ COMPENSATION ATTORNEYS, INCLUDING…
• Proving that a claim arose out of, and occurred in, the course of the employment: Mojica v. The Valley Hospital
• Interpreting the "Going and Coming Rule" to prove your case: Scott v. Foodarama Supermarkets • Determing jurisdiction of the court: Morella v. Grand Union/New Jersey Self-Insurers Guaranty Association 193 N.J. 350 (2008), Kibler v. Roxbury Bd. of Educ. 392 N.J. Super. 45 App. Div. 2007) , Flick v. PMA Ins. Co. and Kathleen Reed, 394 N.J. Super. 605 (App. Div. 2007)• What you need to know about counsel fees: Alvarado v. J & J Snack Foods Corp.
• How to handle a Longshore and/or Defense Base Act Claim
• What you need to know about NJ 911 exposure filing and proof requirements
...and more

http://www.njicle.com/seminar.aspx?sid=558
Moderator:JON L. GELMAN, ESQ.

Speakers include:
STEPHEN C. EMBRY, ESQ.
NANCY J. JOHNSON, ESQ.
EDGAR N. ROMANO, ESQ.

Click here to print paper registration form http://www.njicle.com/ICLEOrderForm.pdf

Medicare Recovery Made Simple

Navigating the Medicare recovery system just became a whole lot easier with the deployment of the new website launched by the new national MSP Recovery Contractor (MSPRC). The Centers for Medicare & Medicaid Services (CMS) has consolidated all of the functions and workloads related to Medicare Secondary Payer (MSP) post-payment recoveries into one MSP recovery contract.

The contract for the new national MSP Recovery Contractor (MSPRC) was implemented on October 2, 2006. The MSPRC has taken over new MSP recovery cases and most existing cases. Chickasaw Nation Industries, Inc. (CNI) is the national contractor. CNI has received several prestigious national awards including: Top Small Businesses, ranked #23 by Federal Times 2006; U.S. Department of Commerce Minority Business Development Agency National Minority Small Business of the Year SBA Administrator’s “Award for Excellence” 2005; and American Indian-Owned Businesses, ranked #2 by New Mexico Business Weekly 2004.

The website explains in detail the procedures and forms utilized by CNI to contact the parties and implement the procedures that it utilizes for recovery in: Workers’ Compensation, Liability, Med-Pay, PIP and Group Health Plan recoveries.

The new website site is a major step forward in assisting all parties in the recovery process.

Are Second Injury Funds Going to be History Soon?

Second Injury Funds [SIF] are now undergoing a critical evaluation as the economy continues to deteriorate. Originally created post World War II, the SIFs encouraged the employers to hire handicapped employees who were hired and had pre-existing disability. The concept afforded a shared responsibility through pooled insurance and insulated the employer from the burden of on apportioning liability in total and permanent disability cases.

Recently, however, the SIF had become raided by State politicians in an effort to balance their State budgets. New Jersey highlights such a concern, and within the last decade funds have been raided three times in order to satisfy debt in the general treasury. Not only does it renege on the promise of providing benefits to injured workers, it slows down the bureaucracy of administrating a workers’ compensation program by inadequately funding staff. At recent hearings before the New Jersey State Senate there were a multitude of complaints concerning inadequate staffing of the SIF, including the need for more attorneys to represent SIF. As a result of this outrage there is pending before the state legislature a resolution to amend the New Jersey’s constitution to prohibit such raiding in the future of funds directed to employee benefits.

SIFs had been challenged by the insurance industry over the last 10 years and they have attempted to disband them and wind down their benefit distribution contributions. Such a challenge was recently opposed in the State of Missouri where an attempt to eliminate the SIF by 2011 was defeated.

Opponents the SIF’s indicate that the Americans with Disabilities Act insulates the employee from retaliatory claims, and the SIFs are no longer necessary. Additionally, insurance carriers would like more control over the distribution of the benefit dollars and the SIF appears as an additional obstacle to employers in crafting settlements in total and permanent disability cases.

It is likely that this debate will continue and that the trend towards elimination of SIFs will also continue.

Cost of Medical Benefits Continue to Soar in Workers Compensation

Medical benefits continue to soar in the workers compensation arena. They constitute the largest and most significant factor in the payment of workers' compensation claims. At a recent meeting of NCCI Holdings Inc. it was announced that data reflects a huge increase in the medical component.

What is significant is that medical now comprises 59% of the benefit dollar reflected in 2007 projections. The total indemnity in 2007 amounts to only 41% of the benefit dollar. In 1997 medical comprise 53% of the benefit dollar and in 1987. It comprised only 46% of the benefit dollar. This is a significant increase in a critical trend in the payment of workers' compensation benefits.

Workers compensation medical cost trends reflect a 6% increase in 2007. While this change is lower than the increase of 2006 which was 8.6%. The overall expenditures are increasing. Medical severity remains growing at a faster rate than the medical cost per loss-time claim. In 2007 while growth was at 6%., the medical CPI was only 4.4%.

Employer costs in workers' compensation have decreased to a projected 1.8% of the total cost in 2007 significantly down from the 2.2% reported in 1997. However, when combined, both the health insurance and workers' compensation programs, the employer' s costs continue to rise very significantly. Health insurance in 2007 amounted to 7.1% of the cost to employers for employee compensation while. In 1997 there were only 5.5%.

“Given the positive 2007 results, our short-term view of the market is optimistic,” added NCCI Chief Actuary Dennis Mealy. “However, our long-term outlook is cautionary due to the myriad of uncertainties that continue to face the business.”

Looking at an overview, when both benefit programs are combine, the statistics reflect a significant rise from the 7.7% in 1997 to the 8.9% in 2007. This trend, if continued, will probably result in consolidation of both benefit programs, and elimination of administrative and litigation costs, through use of a single-payer system.