A Conservative Re-Envisioning Of The Health Care Overhaul

Today's post was shared by Kaiser Health News and comes from capsules.kaiserhealthnews.org

Tired of hearing policy experts and politicians debate the 2010 health care law?  What if you took the Affordable Care Act out of the conversation?  If you could scrap the nation’s current health care system and build a new one, what would it look like?

A group of health care experts from Stanford University, the Harvard Kennedy School of Government and the University of Southern California, among other institutions, has compiled a report with their answer to that question.  Funded by the conservative-leaning American Enterprise Institute’s National Research Initiative, the document offers a variety of ideas that its authors say would achieve universal coverage, protect the poor and the sick and restrain health care cost growth, among other priorities.

“In many ways, the ACA has been a distraction, because people think that all of the health care debate boils down to ‘do you support the ACA or do you oppose it?’ ” said Darius Lakdawalla, one of the authors and a visiting scholar at the American Enterprise Institute, as well as a  professor of pharmaceutical economics in the University of Southern California School of Pharmacy. “To us, that is really a very narrow and misleading question.”

The report’s proposals include allowing health insurers to charge premiums that reflect consumers’ health care costs and providing generous subsidies to help the poor obtain...

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Texas Pointing Way to Healthy Market

Today's post was shared by WorkCompCentral and comes from daviddepaolo.blogspot.com

The health of the workers' compensation industry has direct ties to the health of the economy.

This makes absolute sense - an employer's premium is calculated in large part by the size of an employer's payroll, modified by the type of jobs that are being performed by the employees represented by that payroll.

Texas' had not been as hard hit by the recession as the other large states, and now it appears that the state is really taking off, economically, if the adage that workers' compensation reflects the economy is to be believed.

Here's the good stats:

Written premiums increased 13.1% from 2011 to 2012 according to the Independent Insurance Agents of Texas.

The state's dominant carrier, Texas Mutual, saw its share of the market increase by 3.3% over the same period, from 33.8% in 2011 to 37.1% in 2012.

The even better news for Texas is that, based on Texas Department of Insurance statistics, Texas Mutual wrote $244 million in premium during the fourth quarter of 2012, with the residual market accounting for only $1.4 million in premium. According to the same report, Texas Mutual's residual market premiums have stayed relatively stable since 2007, the first year in the report.

Texas is an optional state. I take this information two ways: either more employers are opting in and qualifying outside of the risky, residual market underwriting standards, or those with high risk and, ergo, high potential premium, are going bare and never entering the work comp market.

But the kicker is...

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Chevron pleads no contest to criminal charges stemming from Richmond refinery fire

Today's post was shared by FairWarning and comes from www.contracostatimes.com

Click photo to enlarge

MARTINEZ -- Chevron will pay $2 million in fines and restitution after pleading no contest Monday to six misdemeanor criminal charges stemming from a fire at its Richmond refinery last year.

Chevron attorneys accepted the terms, including 3 1/2 years of probation, $1.28 million in fines, and more than $720,000 in restitution payments to three different agencies.

The penalties resulted from joint charges filed Monday in Contra Costa Superior Court by state Attorney General Kamala Harris and Contra Costa County District Attorney Mark Peterson. The terms of the plea had been agreed to by both sides before Monday's hearing.

"This criminal case achieves our goals of holding Chevron accountable for their

conduct, protecting the public, and ensuring a safer work environment at the refinery," Peterson said in a news release. Peterson also praised Chevron for its "commitment to do more than what is required by law" to prevent future accidents.

Chevron committed six violations of labor, health and safety standards, according to the complaint. The violations included failure to "correct deficiencies" in equipment, negligent emissions and failure to prevent employees' exposure to hazardous conditions.

The Aug. 6 fire knocked out the refinery's No. 4 crude unit and sent more than 15,000 people to area hospitals complaining of respiratory discomfort and other symptoms. Subsequent investigations have revealed that the fire was caused by a corroded pipe that failed,...

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Claimants’ expert in Garlock trial suggests $1.3 billion settlement figure

Today's post was shared by Legal Newsline and comes from legalnewsline.com

Bates

CHARLOTTE, N.C. (Legal Newsline) – A consultant tapped by attorneys representing claimants suing Garlock Sealing Technologies for asbestos exposure estimated the gasket manufacturer would need to devote more than $1.365 billion to a trust to settle pending and future claims against the company during testimony given Thursday.

Mark Peterson, a lawyer with a Ph.D. in social psychology who does estimations for trusts, said based on litigation trends from the past five years, the company would need to devote at least that much money to cover liability Garlock would likely face from people who will develop cases of mesothelioma in the coming years.

Judge George Hodges will ultimately decide how much money the company will need to devote to escape bankruptcy. The bankruptcy trial, which began two weeks ago at the U.S. Bankruptcy Court for the Western District of North Carolina and is expected to end on Tuesday, will determine the estimated liability of the company for current and future asbestos claims.

Peterson’s estimation is in stark contrast with that of a Garlock consultant who came up with a figure of about $270 million in his own estimation. Charles Bates, chairman of the economic consulting firm Bates White LLC and former assistant professor in the economics department at Johns Hopkins University testified about an estimation report his firm created to assess how much Garlock should put in the trust to compensate valid claimants.

Bates estimated $25 million...

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Fitch report: Workers comp will be hit hard if TRIA not extended

Today's post was shared by WCBlog and comes from ifawebnews.com

Fitch Ratings has issued a report on what it believes will be the impact on different aspects of business should the Terrorism Risk Insurance Act not be renewed. Present legislation, the Terrorist Risk Insurance Program Reauthorization Act, doesn’t expire until Dec. 31, 2014, but renewals of current policies will begin in January.

TRIA was passed after the 9/11 terrorism attacks to act as a backstop of sorts in the event a future event yielded similar financial losses.

The report finds that the most critical impact will be on workers compensation. Reduced workers’ compensation coverage availability would have broad economic consequences for employers, according to the report. Workers’ compensation insurers could be especially susceptible to large losses if a major terrorist event takes place without TRIPRA coverage. “Recognition of this vulnerability may lead to a withdrawal of insurer’s underwriting capacity from the workers’ compensation market, particularly in industries and geographic areas with greater perceived risk of terrorism-related losses,” Fitch said in its report.

Impact will also be felt in commercial property and business interruption lines of insurance, in addition to insurer credit ratings and the commercial mortgage-backed securities market.

The report cautions that if TRIA is not renewed, “demand for private market terrorism insurance protection will inevitably increase and premium rates will significantly...

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BP ordered to pay $130 million to oil spill claims administrator

Today's post was shared by JURIST and comes from jurist.org

[JURIST] Judge Sally Shushan of the US District Court for the Eastern District of Louisiana [official website] on Wednesday ordered British Petroleum (BP) [corporate website] to pay the third quarter and some fourth quarter expenses for the gulf oil spill claim administration program [official website website]. The budget and fees for the program totaled over $130 million. This order comes as the FBI esearches allegations by BP that the disbursement process has been corrupted. Although Shushan acknowledged that BP raised legitimate concerns about claims administrators approving false filings for a percentage of the payouts, she concluded that the program could not be halted on short notice based on the allegations alone. Although BP appealed immediately, US District Judge Carl Barbier, who is overseeing the spill litigation, upheld the decision within hours. The claim administration program is expected to continue operations while the court-appointed administrator and several former employees are investigated for fraud [FBI summary].

The 2010 Deepwater Horizon oil spill [JURIST news archive] in the Gulf of Mexico is one of the largest commercial disasters in modern history, and was responsible for the destruction of protected wildlife habitats that are still under reconstruction to this day. Two weeks ago, the US Department of Justice (DOJ) [official website] announced that Halliburton Energy Services [corporate website; JURIST news archive] agreed to plead guilty to...

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Debtors’ in asbestos bankruptcy case appeal estimation decision to Third Circuit

Today's post was shared by Legal Newsline and comes from legalnewsline.com

Fitzgerald

But then came Fitzgerald’s 50-page May 20 memorandum opinion in which the Delaware-based jurist estimated the liabilities of Specialty Products Holding Corp. and Bondex International to be in the neighborhood of $1.1 billion, many millions of dollars higher than what the debtors contended the true figure to be.

An expert working for the bankrupt companies – they are referred to as ‘debtors’ in bankruptcy proceedings as opposed to ‘defendants’ in the tort system – had estimated total future liabilities at between $465 million to $700 million nominal or $300 million to $575 million net present value.

In the end, Fitzgerald, who retired from the bench shortly after rendering her decision in the case, estimated the liabilities to be closer to the figures thrown out by attorneys representing the Official Committee of Asbestos Personal Injury Claimants and the Future Claimants’ Representative, numbers that were in the billion-dollar range.

Appropriate estimate

In her May decision, Fitzgerald wrote that after considering all of the evidence in the case, exhibits and arguments presented to the court during a weeklong estimation hearing in Pittsburgh earlier this year and during subsequent briefs and other legal filings, she considered an appropriate estimate for mesothelioma claims, pending and future, to be $1.1 billion net present value.

The judge also determined that an additional six percent, or $66 million, would have to be...

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