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Showing posts sorted by relevance for query recession. Sort by date Show all posts
Showing posts sorted by relevance for query recession. Sort by date Show all posts

Thursday, March 18, 2021

Bill to Overhaul National Unemployment Insurance Technology

US Senate Finance Committee Chair Ron Wyden, D-Ore., Senator Sherrod Brown, D-Ohio, Senator Mark Warner, D-Va., and Senator Catherine Cortez Masto, D-Nev., today introduced legislation that would establish one set of technology and security capabilities for state unemployment offices.

Wednesday, August 21, 2013

Workers' Compensation Benefits, Employer Costs Rise with Economic Recovery

NASI issued the following press release reflecting that workers' compensation costs are continuing to soar on the back of ever increasing medical expenses. The real question that remains unanswered is whether the Affordable Care Care will rein in costs and capture the workers' compensation delivery system in the process. Increased costs are good for workers' compensation carriers as they increase premiums to reflects those numbers. Looking down the road, a single Universal Medical Benefit program may present the only true alternative to achieve the cost savings employers need and want. Today's post was shared by WCBlog and comes from www.nasi.org


After declining in the wake of the recession, workers’ compensation benefits paid to injured workers and costs borne by employers increased in 2011 as the U.S. economy continued to recover, according to a new report by the National Academy of Social Insurance (NASI).

Total benefits rose by 3.5 percent to $60.2 billion.  The benefits include a 4.5 percent rise in medical care spending to $29.9 billion and a 2.6 percent rise in wage replacement benefits to $30.3 billion. Total costs to employers rose by 7.1 percent to $77.1 billion.

"Workers’ compensation often grows with the growth in employment and earnings,” said Marjorie Baldwin, chair of NASI’s Workers’ Compensation Data Panel and Professor of Economics in the W.P. Carey School of Business at Arizona State University.  When benefits and costs are measured relative to total covered wages, then benefits remained unchanged, and costs to employers rose very modestly (to $1.27 per $100 of wages) after declining in the previous five years.

Workers’ Compensation Benefits, Coverage, and Costs, 2011
Covered workers (in thousands)
Covered wages (in billions)
Workers' compensation benefits (in billions)
     Cash benefits$30.32.6%
Employer costs (in billions)$77.17.1%
Amounts per $100 of covered wages
    Cash payments to workers
Source: National...
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Thursday, May 29, 2014

Median CEO Pay Tops $10 Million For The First Time

Wage inequality impacts workers' compensation. Benefits are calculated upon wages earned at the time of the accident. Many workers hold two jobs and rates are calculated only upon one job. Today's post was shared by Steven Greenhouse and comes from www.npr.org


Leslie Moonves of CBS received $65.6 million in total compensation in 2013, an increase of 9 percent. CBS stock rose nearly 70 percent last year.

Are you getting rich off the rising stock market? America's CEOs are.
Median compensation for the chief executive of a Standard & Poor's 500 company was $10.8 million last year, according to a study by The Associated Press.
That represents an 8.8 percent increase over 2012 and marks the first time that median compensation crossed the eight-figure mark.
Much of the increase was due to performance cash bonuses, stock awards and options. The S&P 500 index rose 30 percent last year, while earnings per share increased by more than 5 percent, lifting CEO compensation, which is generally tied to such indicators.
Bankers got the biggest raises, with total compensation on Wall Street rising 22 percent — matching the 22 percent they'd received a year earlier. Media industry CEOs also did nicely, with the top officials of CBS, Viacom, Walt Disney and Time Warner each pulling in more than $30 million
All told, more than two-thirds of CEOs got a raise, according to the study, which AP and the executive pay research firm Equilar conducted using federal filing statements.
Women CEOs made more than men — $11.7 million, compared to $10.5 million. But that applied only to the dozen women who were included in the sample, compared to 325 male CEOs.
Last year was the fourth in a row in which CEO compensation increased, following a dip with the Great Recession. "The median CEO pay package climbed more than 50 percent over that stretch," according to the AP. "A chief...
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Wednesday, September 4, 2013

What's Your Labor Worth? For Most of Us, Less Than It Was in 2000

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

A confused man, holding a pen, sitting amidst piles of binders

A confused man, holding a pen, sitting amidst piles of binders
Historically, Labor Day is a day for celebrating America's workers -- a factor that influenced everything from its founding to the date on which it was placed. Coming roughly midway between Independence Day and Thanksgiving, it was intended to give workers a respite to break up the long holiday-free stretch in the latter half of the year.

(Of course, since Labor Day is a national holiday, the makes the first Monday in September a prime date for merchants hoping to attract customers -- a factor that doesn't work out all that well for the estimated 11 percent of American workers employed in retail sales.)
So, as we honor America's workers, we're taking a peek at some of the factors, good and bad, affecting American labor.

Friday, December 19, 2014

Fueled by Recession, U.S. Wealth Gap Is Widest in Decades, Study Finds

Today's post was shared by Steven Greenhouse and comes from www.nytimes.com



The wealthy are getting wealthier. As for everyone else, no such luck.
A report released on Wednesday by the Pew Research Center found that the wealth gap between the country’s top 20 percent of earners and the rest of America had stretched to its widest point in at least three decades.
Last year, the median net worth of upper-income families reached $639,400, nearly seven times as much of those in the middle, and nearly 70 times the level of those at the bottom of the income ladder.
There has been growing attention to the issue of income inequality, particularly the plight of those earning the federal minimum wage of $7.25 an hour or close to it.
But while income and wealth are related (the more you make, the more you can save and invest), the wealth gap zeros in on a different aspect of financial well-being: how much money and other assets you have accumulated over time, including the value of your home and car plus any investments in stocks, bonds and the like.
Think of it as “a measure of the family ‘nest egg,’ ” as Pew calls it — a hoard that can sustain a household during an emergency, like the loss of a job, and in the long run can see someone through retirement.
The wealth gap “exposes varying degrees of vulnerability,” said Valerie Wilson, an economist at the Economic Policy Institute, a left-of-center research group in Washington, adding that it also was passed down through the generations.
While those at the top have...
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Tuesday, March 13, 2012

Workers Compensation Is Quietly Under Attack in America

Guest Blog
by Steve Cooper*


As the economy crawls out of the dumps and more people return to the job site, a strong workers compensation environment is as important as ever. Unfortunately, workers comp appears to be under quiet attack in many states.

In Virginia, a law aimed at stopping Virginia dock workers from “double-dipping” may actually leave longshoremen more vulnerable than workers doing much safer work. HB153 is making its way through assembly and has the International Longshoremen’s Association (ILA) concerned:

“Why in the world should a Virginia harbor worker be denied benefits that are provided for other Virginia citizens who work in a business across the street from the harbor?” said Deborah C. Waters, general counsel for the longshoremen’s union.

Arthur W. Moye Jr., executive vice president of the Virginia Maritime Association, which represents more than 400 member organizations employing more than 70,000 workers in port-related jobs, said the primary reason for seeking the legislation was duplication.

Harbor workers are the only employees in the state who can seek workers’ compensation coverage under both state and federal programs, he said. Most workers in Virginia are eligible for coverage only under the state program.

“We feel the federal act covers the needs of an injured worker and covers it in a far superior way than the Virginia state act does,” Moye said.

There are differing opinions about this bill, however. The sticking point is the limitation on what the federal act covers. Worker representatives feel it is hardly sufficient, especially for a worker faced with a serious injury such as a lost limb or a family incurring a costly funeral. It is difficult to classify something as “double-dipping” when the first “dip” doesn’t do enough. Moreover, “double-dipping” is prohibited, making the new law appear obsolete on arrival:

Today, injured maritime workers in Virginia, like those in some other states, are covered under the state’s workers’ compensation program as well as two federal programs: the Longshore and Harbor Workers’ Compensation Act and the Merchant Marine Act, or Jones Act, which applies only to members of crews of vessels under way.

Under the current arrangement, an injured shipyard worker can file claims under the state and federal longshore-act program, though the laws prohibit “double-dipping.”

“There’s a lot of things that the state act does that the longshore act doesn’t cover,” said Stephen Harper, a Richmond attorney and chairman of the workers’ comp section of the Virginia Trial Lawyers Association.

In the event of a fatal injury, for example, the state program offers the family of the victim a $10,000 funeral benefit plus $1,000 in transportation costs, Harper said.

Under the federal program, the maximum funeral benefit is $3,000.

Under the state and federal plans, Harper said, if a worker suffers a permanent injury, such as a crushed ankle, that prevents him from returning to his old job, he is eligible for compensation for a certain period of time, based on a doctor’s evaluation of the degree of impairment.

In most cases, once the payment is made under the federal programs, the insurer’s obligation ends. Through the state workers’ comp program, however, benefits can last as long as 500 weeks, or 9-1/2 years.

“They’re putting the longshore people in a much, much worse situation than the guy working down the street at Walmart,” Harper said. “The same injury, the guy down at Walmart may be able to get lost wages because of that ankle fusion for 9-1/2 years, potentially, but under the longshore act it could be a lot less.”

In Kansas, House Bill 2531 is poised to diminish workers comp as well. The law changes how those appointed to hear workers comp cases are selected. It is alleged that the new selection process skews anti-worker:

Such judges are now chosen by a panel consisting of one member picked by the Kansas Chamber of Commerce and one picked by the Kansas AFL-CIO. The bill would use a seven-member panel composed of the state labor secretary, a person from an employee organization chosen by the labor secretary, and representatives of the Kansas Chamber of Commerce, National Federation of Independent Businesses, Kansas AFL-CIO, Kansas State Council of the Society of Human Resource Management and Kansas Self-Insurers Association. More people at the table may be a good idea, but the proposed lineup is hardly rich with employee representation.

In Pennsylvania, employers successfully won a 5.7% decrease in workers comp funding this week:

The Pennsylvania Insurance Department (PID) recently approved a 5.7 percent overall decrease in workers’ compensation costs. The rate cuts will result in $160 million in savings for Pennsylvania employers, the department estimates.

“At a time when many are feeling a financial pinch and doing more with less, it is a very hopeful sign that the business community may now be able to pay less in workers’ compensation insurance premiums,” said Insurance Commissioner Mike Consedine.

The article makes no mention of the impact this could have on workers, but does suggest that Pennsylvania employers are given an even larger discount when they display superior safety practices:

Businesses enrolled in the Certified Workplace Safety Committee program of Pennsylvania’s Department of Labor and Industry (DOLI) receive an additional 5 percent discount. Currently 9,652 businesses have certified safety committees. Participating businesses have realized insurance premium reductions totaling $432.8 million since the program began, DOLI reports. “Pennsylvania employers are able to benefit from the outstanding job they are doing to provide safer workplaces,” said Labor Secretary Julia Hearthway.

In Wyoming, nearly $1,000,000 in workers compensation has gone unpaid, according to the WyoFile:

Did you know; of Wyoming’s 18,228 employers 1,212 of them are delinquent on their Wyoming Workers’ Compensation premiums — to the tune of $943,498.73, according to state officials? That’s 6.6 percent of Wyoming’s employers who pay into Wyoming Workers’ Compensation — delinquent. $1 million. Yet, those delinquent employers still enjoy legal immunity for their own proven negligence in a worker injury/death — because that’s part of the compromise of workers’ compensation?

Employees in Wyoming do not enjoy the same leniency when it comes to delinquency. If an injured worker files 1 day late, no case, no benefits. No matter.

To make matters worse, workers compensation legislation can often be misleading. In Missouri, workers comp was recently “expanded” to include many job-related diseases. What this means is that the state is now on the hook, rather than businesses, for harm done to employees by employers. This appears to be a win for workers on the surface, but is actually a Republican-driven move aimed at making Missouri more “business friendly”:

In a move that Republicans contend will make Missouri more attractive to businesses, the state Senate has approved legislation to expand the workers’ compensation program.

The measure, SB572, approved with a largely party-line 28-6 vote, would cover occupational diseases under the workers’ compensation program — freeing businesses from potentially costly litigation.

But this bill tucked in some very questionable caveats, including lumping together disparate diseases and the exclusion of immigrants and prisoners:

St. Louis County Democratic Sen. Tim Green drafted — but did not offer — an amendment that would have excluded occupational diseases from the compensation program. He said curable injuries like carpal tunnel syndrome aren’t similar to lethal diseases such as mesothelioma, a type of cancer that can be caused by exposure to asbestos.

“I don’t think they should be treated the same,” Green said. “Putting it back in the workers compensation system isn’t right and that’s what this bill did.”

The legislation would also prevent illegal immigrants or people who are in prison from collecting workers’ compensation benefits.

The bill is expected to breeze through the Missouri House.

A surprising bright spot is South Carolina which is attempting to make up the decrease in workers comp responsibility that business owners have witnessed since 2009:

South Carolina employers could see their workers’ compensation premiums increase next year if state regulators go along with a proposed 7.3 percent increase in the state’s loss cost rates.

The National Council on Compensation Insurance filed for the proposed increase earlier this month, making it the first such proposed increase since 2008. Most recently, the state has seen three loss cost decreases totaling 13.4 percent.

Based on 2009 and 2008 policy year data, the rate filing calls for a 5.3 percent increase in experience, a 2.2 percent increase in trend, a 0.1 percent increase in benefits, and a slight decrease of 0.4 percent in loss adjustment expenses.

Even if the current proposed rate change is approved as filed by South Carolina Acting Insurance Commissioner Gwendolyn Fuller McGriff, employers will still have seen a cumulative decrease of 7.1 percent since 2009.

On the national level, reports are emerging of a disproportionate number of workers in need of disability compensation, especially for mental illness. Typically anti-worker source The New York Post suggests that workers are grasping at safety net straws due to the country’s economic decline:

“It could be because their health really is getting worse from the stress of being out of work,” Matthew Rutledge, a research economist at Boston College, told the paper. “Or it could just be desperation — people trying to make ends meet when other safety nets just aren’t there.”

The paper said that, according to recent research by JPMorgan Chase, the government was mailing out disability checks to about 10.5 million people, including 2 million to spouses and children of disabled workers, at a cost of about $200 billion annually.

The stagnant economy has grown those ranks. About 5.3 percent of the population between the ages of 25 and 64 are collecting federal disability payments, a jump of 4.5 percent since the recession hit in 2009.

There is no question these numbers represent a drastic leap, but how our system treats the injured and disabled is not to be taken lightly. JPMorgan and The New York Post have been champions of the austerity that has been the enemy of many a necessary program from a worker standpoint. Workers compensation can ill-afford to be next on the chopping block.


Steve Cooper (E.m. Ployd) lives in Washington, DC, and is the editor of We Party Patriots. He educates union members on the benefits of social media, offering instruction on engaging on Facebook and Twitter. When not ruining his posture and finger muscles through endless computer use, Cooper is an avid chef and musician. The We Party Patriots has an active on Facebook page that is "A bold, accessible online approach to achieving the Labor Movement's goals and defeating the powers that Tea."

Saturday, April 5, 2014

Out of Work, Out of Benefits, and Running Out of Options

Today's post was shared by The New York Times and comes from www.nytimes.com

Abe Gorelick has decades of marketing experience, an extensive contact list, an Ivy League undergraduate degree, a master’s in business from the University of Chicago, ideas about how to reach consumers young and old, experience working with businesses from start-ups to huge financial firms and an upbeat, effervescent way about him. What he does not have — and has not had for the last year — is a full-time job.
Five years since the recession ended, it is a story still shared by millions. Mr. Gorelick, 57, lost his position at a large marketing firm last March. As he searched, taking on freelance and consulting work, his family’s finances slowly frayed. He is now working three jobs, driving a cab and picking up shifts at Lord & Taylor and Whole Foods.
“I’m not in my basement, unshaven, unshowered, drinking a bottle of Scotch a day,” Mr. Gorelick said. “I’m out there working these jobs, meeting people and trying to make something happen. But it is exhausting. It is stressful. It is difficult.”
For people experiencing such long spells without appropriate work, it is a crisis. Often, it is also a conundrum: What should a worker who finds himself out of a job for six months or more do?
“There is this very pressing issue,” said Ofer Sharone, a sociologist at the Massachusetts Institute of Technology, “and there is this great gap in knowledge about what to do about it, both for policy...
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….
Jon L. Gelman of Wayne NJ is the author NJ Workers’ Compensation Law (West-Thompson) and co-author of the national treatise, Modern Workers’ Compensation Law (West-Thompson). For over 4 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 occupational accidents and illnesses.

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Monday, July 28, 2014

Inequality Is Not Inevitable

Today's post was shared by Steven Greenhouse and comes from opinionator.blogs.nytimes.com
AN insidious trend has developed over this past third of a century. A country that experienced shared growth after World War II began to tear apart, so much so that when the Great Recession hit in late 2007, one could no longer ignore the fissures that had come to define the American economic landscape. How did this “shining city on a hill” become the advanced country with the greatest level of inequality?
One stream of the extraordinary discussion set in motion by Thomas Piketty’s timely, important book, “Capital in the Twenty-First Century,” has settled on the idea that violent extremes of wealth and income are inherent to capitalism. In this scheme, we should view the decades after World War II — a period of rapidly falling inequality — as an aberration.
This is actually a superficial reading of Mr. Piketty’s work, which provides an institutional context for understanding the deepening of inequality over time. Unfortunately, that part of his analysis received somewhat less attention than the more fatalistic-seeming aspects.
Javier Jaén
Over the past year and a half, The Great Divide, a series in The New York Times for which I have served as moderator, has also presented a wide range of examples that undermine the notion that there are any truly fundamental laws of capitalism. The dynamics of the imperial capitalism of the 19th century needn’t apply in the democracies of the 21st. We don’t need to have this...
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Thursday, October 24, 2013

Why The Republicans Should Not Cut Food Stamps

Facts about food stamps. Click on this image to see it full size.
Today's post comes from guest author Paul J. McAndrew, Jr., from Paul McAndrew Law Firm.

I write about a debate now occurring in Congress in which the GOP is threatening millions of American families, including 200,000 Iowa households.  The debate is over food stamps, now known as the Supplemental Nutrition Assistance Program (“SNAP”).

To understand the problem, we need only review the survey-report issued by the Department of Agriculture on September 4.  (Alisha Coleman-JensenMark Nord, Anita Singh, “Household Food Security in the United States in 2012”).  The report shows that nearly 49 million Americans lived in “food insecure” households last year.  This means family members lack consistent access to adequate food throughout the year.  In short, 49 million Americans (over 16 times the Iowa population) went hungry for long periods in 2012.  Worse, children were found to be hungry in 10% of all U.S. families with children.  The agency found that hunger rates since the 2007 recession are much higher than before.

Wednesday, August 28, 2013

Jobs are coming back, but they don't pay enough

Workers' Compensation benefits are usually based on an individual's wages and limited by the State Average Weekly Wage (SAWW). Likewise, premiums paid by employers are also determined by payroll costs. As medical costs soar, wage are not keeping up with wages, therefore premiums must rise. The result is a push by employers to limit workers' compensation claims through regulation and statutory reforms. Today's post was shared by Steven Greenhouse and comes from www.baltimoresun.com


The good news as Labor Day approaches: Jobs are returning. The bad news: Most of them pay lousy wages and provide low, if not nonexistent, benefits.

The trend toward lousy wages began before the Great Recession. According to a new report from the Economic Policy Institute, weak wage growth between 2000 and 2007, combined with wage losses for most workers since then, means that the bottom 60 percent of working Americans are earning less now than 13 years ago.

This is also part of the explanation for why the percentage of Americans living below the poverty line has been increasing even as the economy has started to recover — from 12.3 percent in 2006 to around 14 percent this year. More than 35 million Americans now live below the poverty line.
Many of them have jobs. The problem is that these jobs just don't pay enough to lift their families out of poverty.

Sunday, October 8, 2017

NASI Study: Employers & Employees Lose With Workers' Compensation

WASHINGTON, D.C. – Workers’ compensation employer costs as a share of payroll declined in 2015, reversing a four-year trend, and benefits as a share of payroll fell for the fourth straight year, according to a new report from the National Academy of Social Insurance (the Academy).

Saturday, January 17, 2015

California: WCIRB Report Shows Continued Increase in Claim Frequency

The WCIRB has released an update to its Analysis of Changes in Indemnity Claim Frequency report which was originally published in 2012 and last updated in December 2013. In prior reports, WCIRB researchers explored potential causes for the increases in claim frequency in California that have persisted since 2010 and that differ from the claim frequency experience of other states.

Prior frequency reports have identified a number of factors influencing claim frequency including increases in cumulative injury claims, increases in smaller non-cumulative injury claims that may have been reported as medical-only in the past, increases in the proportion of indemnity claims relative to total claims, and increases in late-reported indemnity claims and the proportion of medical-only claims that later transition to indemnity.

In this latest update, WCIRB researchers studied the influencing factors driving recent claim frequency based on the most up-to-date data available. The WCIRB’s principal findings include:

  • Unlike in most other states over the last several years, California indemnity claim frequency has continued to increase as WCIRB data currently indicates increases of 3.2%, 3.9% and 0.9% in 2012, 2013, and 2014, respectively. 
  • The number of late reported indemnity claims continues to increase, whereas the percentage of medical only claims reported after 18 months has generally remained stable since 2007. 
  • The level of cumulative injury claims has continued to increase. Approximately 13% of indemnity claims are estimated to involve a cumulative injury in 2013 compared to approximately 8% in the 2005 to 2007 period. 
  • The growth in cumulative injury claims beginning in 2009 has been concentrated in claims involving more serious injuries and multiple injured body parts. Both the proportion of cumulative injury claims involving indemnity benefits and the proportion involving injuries to multiple body parts have increased significantly since 2010. 
Based on WCIRB surveys of cumulative injury claims, both the proportion of cumulative injury claims involving multiple insurers and the proportion involving attorney representation has increased in recent years. In addition, approximately two-thirds of surveyed claims were initially denied in part or in whole by the insurer and approximately 40% of claims, despite long-standing statutory limitation on the compensability of post-termination claims, were reported post-termination.

Shifts to a less hazardous composition of industries in California (“industrial mix”) have historically driven claim frequency downward. The recent economic recovery in higher hazard industries such as construction and manufacturing has had the opposite impact. In 2013, rather than dampening claim frequency, shifting industrial mix is increasing claim frequency by approximately 1%.

The 2010 increase in frequency was greatest in industries that were most impacted by the recession (e.g. construction and real estate). Since 2010, relativities for higher-frequency industries such as agriculture, construction, and entertainment have increased while those for the lower-frequency industries such as real estate, professional services, and finance have declined.

The 2010 indemnity claim frequency increase was generally experienced across all California regions. Since that time, the increases have been concentrated in the Los Angeles area. Indemnity claim frequency increased an estimated 9% in the Los Angeles Basin region from 2010 to 2013 while, similar to the pattern shown in many other states, other California regions showed modest declines. By comparison, indemnity claim frequency in the Bay Area declined by 7% over the same period. The Los Angeles area also has experienced significantly higher numbers of cumulative injury claims and claims involving multiple body parts than other regions of California.

As the economy recovers, newer workers enter the system and are often more likely to be injured on the job than more experienced workers. The proportion of injured workers with less than 2 years of experience at their current job has grown by 8% from 2010 to 2014, suggesting the economic recovery is a significant driver of recent claim frequency increases.

The full Analysis of Changes in Indemnity Claim Frequency—January 2015 Update Report is available in the Research and Analysis section of the WCIRB website.

Friday, August 9, 2013

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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Monday, October 7, 2013

Is Workers' Compensation Just a Promise That Can't Be Kept?

Over a century ago, Labor and Industry made a promise to each other called Workers' Compensation. It was summary, remedial, inexpensive administrative process that provided benefits to injured workers through a social insurance program for work-related accidents and diseases. The shifting of wealth in the US has now made the workers' compensation program a target for reform and elmination. Today's post is shared from the opinion pages of the NYTimes.com.

As bad as things in Washington are — the federal government shutdown since Tuesday, the slim but real potential for a debt default, a political system that seems increasingly ungovernable — they are going to get much worse, for the United States and other advanced economies, in the years ahead.

From the end of World War II to the brief interlude of prosperity after the cold war, politicians could console themselves with the thought that rapid economic growth would eventually rescue them from short-term fiscal transgressions.

The miracle of rising living standards encouraged rich countries increasingly to live beyond their means, happy in the belief that healthy returns on their real estate and investment portfolios would let them pay off debts, educate their children and pay for their medical care and retirement. This was, it seemed, the postwar generations’ collective destiny.

But the numbers no longer add up. Even before the Great Recession, rich countries were seeing their tax revenues weaken,...
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Friday, February 20, 2015

This Chart Shows What Walmart's Pay Raises Mean for the Minimum Wage

Today's post was shared by Steven Greenhouse and comes from time.com

In a move set to reignite the debate over increasing the federal minimum wage, Walmart said Thursday it’s giving half a million of its employees a raise.

Here’s what’s in store for the 500,000 employees who are paid the company’s baseline wages (which are highly contested numbers), according to a statement:

What do Walmart’s raises really mean in context of the minimum wage debate?

As the world’s largest retailer, Walmart’s actions will likely provide a boost to those who want to bump up the federal minimum wage from $7.25 per hour to $10. Those efforts have repeatedly been blocked by some lawmakers in Congress, leading many states to pass their own laws establishing minimum wages above the federal level.

But supporters of a higher federal minimum wage have also called for the rate to be tied to inflation. Why? As inflation increases, the same amount of money buys less stuff — so that $7.25 could feel more like $6.50 or $5.75.

Take a look at the chart above: The federal minimum wage, shown in blue, has been increasing since 1938. But the purchasing power of that wage, shown in orange, has mostly been falling since 1968.

You might notice a slight uptick in the minimum wage’s purchasing power in recent years. That’s because inflation rates were unusually low in the wake of the Great Recession. But as the economy continues returning to normal, expect the minimum wage to lose purchasing power once again.

To bring it back to...


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Friday, December 5, 2014

Growth In U.S. Health Spending In 2013 Is Lowest Since 1960

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

National health spending grew 3.6 percent in 2013, the lowest annual increase since the Centers for Medicare and Medicaid Services (CMS) began tracking the statistic in 1960, officials said Wednesday.

Spending slowed for private health insurance, Medicare, hospitals, physicians and clinical services and out-of-pocket spending by consumers.  However, it accelerated for Medicaid and for prescription drugs, according to the report, published online by the journal Health Affairs.

Health care spending has grown at historically low rates for the past five years, which is consistent with declines generally seen during economic downturns, such as the Great Recession that crippled the U.S. economy at the end of 2007.  Looking ahead, “the key question is whether health spending growth will accelerate once economic conditions improve significantly; historical evidence suggest that it will,” noted the authors, who are from the CMS Office of the Actuary.

health spending 570
health spending 570

They also pointed out, however, that in the near term, the health sector will “undergo major changes that will have a substantial impact” on consumers, providers, insurers and sponsors of health care. These are the result of the health law’s creation of online marketplaces, its expansion of Medicaid, a shared federal-state health care program for the poor and disabled, and restraints the law made to the Medicare program, the analysts found.

“The balance of these and many...

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Thursday, December 26, 2013

Bloomberg Public Health Legacy Lauded In NYC

Today's post was shared by RWJF PublicHealth and comes from www.huffingtonpost.com


Michael Bloomberg steered New York City through economic recession, a catastrophic hurricane and the aftermath of 9/11, but he may always be remembered, accurately or not, as the mayor who wanted to ban the Big Gulp.
After 12 years, Bloomberg leaves office Dec. 31 with a unique record as a public health crusader who attacked cigarettes, artery-clogging fats and big sugary drinks with as much zeal as most mayors go after crack dens and graffiti.
And while Bloomberg's audacious initiatives weren't uniformly successful, often leading to court challenges and criticisms he was turning New York into a "nanny state," experts say they helped reshape just how far a city government can go to protect people from an unhealthy lifestyle.
"He has been a transformative leader," said Dr. Linda Fried, dean of Columbia University's school of public health. "He has created a model for how to improve a city's health."
Coming into office as a billionaire businessman who made his fortune selling data to Wall Street, Bloomberg was accustomed to using hard, cold research to drive decisions, and it was an approach he used effectively on matters of public health.
Bloomberg pushed to ban smoking in indoor public spaces and prohibit cigarette sales to anyone under 21. He got artificial trans-fat banned from restaurant food — an action that led fast food giants like McDonald's and Dunkin Donuts to change their recipes rather than lose access to the...
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Monday, December 17, 2012

Slow Recovery Affects Workers' Compensation Benefits and Costs

Today's post comes from guest author Kit Case from Causey Law Firm.
A Press Release by the National Academy of Social Insurance

WASHINGTON, DC - Workers' compensation benefits declined to $57.5 billion in 2010 according to a report released today by the National Academy of Social Insurance (NASI). The drop in workers' compensation benefits was largely due to a 2.1 percent drop in medical benefits for injured workers. Employers' costs for workers' compensation also fell by 2.7 percent in 2010. As a share of covered wages, employers' costs in 2010 were the lowest in the last three decades.

"As a share of covered wages, employers' costs in 2010 were the lowest in the last three decades."

"Employers' costs as a percent of payroll declined in 43 jurisdictions," said John F. Burton, Jr., chair of the study panel that oversees the report. "This decline is probably due to the slow pace of the recovery, with many jurisdictions still experiencing relatively high unemployment rates."

Workers' Compensation Benefits, Coverage, and Costs, 2010
Total
2010
Change   Since 2009 (%)
Covered workers (in thousands)
124,454
-0.3%
Covered wages (in billions)
$5,820
2.6%
Benefits paid (in billions)
$57.5
-0.7%
Medical benefits
$28.1
-2.1%
Cash benefits
$29.5
0.7%
Employer costs (in billions)
$71.3
-2.7%
Per $100 of Covered Wages
2010
Change   Since 2009 ($)
Benefits paid
$0.99
-$0.03
Medical benefits
$0.48
-$0.03
Cash benefits
$0.51
-$0.01
Employers' costs
$1.23
-$0.06
Source: National Academy of Social Insurance, 2012.

The new report, Workers' Compensation: Benefits, Coverage and Costs, 2010, is the fifteenth in the series that provides the only comprehensive data on workers' compensation benefits for the nation, the states, the District of Columbia, and federal programs. 

"This report represents the first time the Academy has released employers' costs by state."

This report represents the first time the Academy has released employers' costs by state. For a table showing employers' costs for all fifty states and the District of Columbia, refer to Table 12 (page 34).

Most states reported a decrease in the number of workers covered but an increase in covered wages between 2009 and 2010. During the same period, the total amount of benefits paid to injured workers declined in 26 jurisdictions and increased in 25. As a share of payroll, benefits paid to injured workers fell by three cents to $0.99 per $100 of payroll in the nation.

The share of medical benefits for workers' compensation has increased substantially over the last 40 years. During the 1970s medical benefits nationally accounted for 30 percent of total benefits, whereas in 2010 the share of benefits paid for medical care was almost 50 percent. Experts attribute this trend to the rising cost of health care.