News Digest 12/18/2006

By: Rick Waldinger

Quote of the day

"It's a sad day for the injured workers and employers. This means that we're going to have to ratchet back our services."

George Smith, executive director of the MCO League of Ohio, in response to the announcement by the Ohio Bureau of Workers' Compensation that it is cutting basic compensation to 25 medical management companies

Go to the full story in the Akron Beacon Journal

San Diego-Area Roofers Face $3 Million Restitution Tab
A San Diego Superior Court judge orders the owners of an Escondido roofing firm to fork over $3 million in restitution to the State Compensation Insurance Fund for underpaying workers’ compensation premiums from 2001 to 2003. By Michael Kinsman, San Diego Union-Tribune
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New York City May Compensate Ground Zero Recovery Workers
New York City Mayor Michael Bloomberg’s administration is considering a plan backed by former master of the Sept. 11 Victim Compensation Fund Kenneth Feinberg to compensate thousands of sick World Trade Center rescue workers who can prove they became ill after working at Ground Zero following the terrorist attacks. By Carl Campanile, New York Post
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Computer Crash Collars Carolina Comp Claims
A computer malfunction two weeks ago that froze records at the North Carolina Industrial Commission may delay thousands of workers’ compensation claims. Officials, while downplaying the problem, say it is too early to state how many records, if any, were permanently lost after an aging computer system overheated. By Dudley Price, News & Observer (Raleigh – Durham, N.C.)
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Pa. Workers’ Comp Act Bars Emotional Distress Claims: Lawyers
Attorneys for York County, Pa., contend that under the Pennsylvania Workers’ Compensation Act, a former shift supervisor at the York County Youth Development Center cannot collect damages for intentional infliction of emotional distress related to her sexual harassment lawsuit. By Carl Lindquist, York Dispatch
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Arkansas Appeals Court Overturns PD Time Limit
The Arkansas Court of Appeals unanimously rules to overturn a state law that limits permanent disability payments to five years for people whose injury occurred after they turn 60. By AP via KTHV-TV (Little Rock)
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Ohio BWC Cuts Payments to Managed Care Companies
The Ohio Bureau of Workers’ Compensation is reducing the basic compensation it pays to 25 medical management companies from eight percent of the premiums paid by employers to 7.25 percent. The Ohio BWC says it expects to save $17 million annually as a result. By Andrew Welsh-Huggins, AP via Akron Beacon Journal
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No Rebates in Ohio Employers’ Stockings This Year
Ohio BWC administrator William Mabe says the agency should hold onto its surpluses as it looks ahead to phasing in its new investment strategy, lowering rates for managed care organizations and changing how pooled employers pay premiums. Ohio employers last received rebates in 2004. By Paul Wilson, Columbus Dispatch
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Nova Scotia WCB Goes Paperless
Employers now can calculate the cost of injuries and submit injury reports to the Workers’ Compensation Board of Nova Scotia online, as part of a “milestone” new paperless system. Additionally in the province, the 1,768 Workers Compensation injury claims resulting from violent acts since 2002 disclose a serious problem. Chronicle Herald (Halifax)
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