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Challenge to SCIF’s Words and Deeds In Lien Case

Providers and carriers are trading barbs in the federal court battle to determine the constitutionality of SB 863’s $100 lien activation fee. State Compensation Insurance Fund (SCIF) opened the fray with an amicus brief painting workers’ comp medical providers as opportunists seeking to make an unjust profit, but medical providers are firing back questioning State … Read More »

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Larry Mulryan Out, Sheryl Chalupa In As Chair of State Fund’s Board

The State Compensation Insurance Fund (SCIF) board of directors has a new Chairman. Governor Jerry Brown tapped longtime board member Sheryl Chalupa as its new chair. The switch is effective immediately and comes at a delicate time as the quasi-governmental carrier searches for a new president and CEO. Chalupa, president and CEO of Goodwill Industries … Read More »

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UPDATE: Workers’ Comp Lien Fee Disputes Expected To Drag On

In order to solve what it perceived as a problem – millions of liens in the system backed up and unable to settle – the Department of Industrial Relations had the legislature act to charge a fee for new filings and to keep old ones active. Whether or not this will stand is under review … Read More »

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State Fund’s Earnings Off As Investment Income Sags

The State Compensation Insurance Fund’s (SCIF) overworked investment portfolio showed signs of strain in 2013 as it failed to meet budgeted expectations and was down 10% from the prior year. The quasi-governmental workers’ comp carrier relies on its investment portfolio to support its continuing under the market pricing and underwriting losses which, last year, were … Read More »

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Court Denies Drobots’ Motions, Case Proceeds Against Father And Son

Efforts to bifurcate and/or stay the State Compensation Insurance Fund’s civil fraud cases against the the former operators of Pacific Hospital of Long Beach and related entities were rebuffed by the district court handling the case. Defense attorneys for Michael D. Drobot Sr. and Michael R. Drobot Jr. had also asked the court to allow them … Read More »

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Short-Term Disability Up 68% For State Agencies

California taxpayers are paying 42% more for treating injured state employees than they were just five years ago as the state’s workers’ comp costs have ballooned to $656 million a year. One key cost driver is the rapid increase in spending for short-term indemnity benefits that have skyrocketed 68% over this same time to $152 … Read More »

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Focus In Lien Fee Disputes Shifts To Ninth Circuit Court of Appeals

The decision by two lien holder plaintiffs to drop their federal class actions challenging SB 863’s $150 lien filing fee means the workers’ comp industry’s focus is shifting to the Ninth Circuit Court of Appeals. That’s where new arguments are being made that the lower district court never should have issued a temporary restraining order … Read More »

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Raises, Bonuses For Some State Fund Executives

It’s bonus time at the quasi-governmental State Compensation Insurance Fund (SCIF). The workers’ comp carrier’s board of directors just approved $280,050 in bonuses to be split amongst top executives and up to $6.2 million that will be distributed among staff, managers, supervisors, career executive assignments (CEAs), program managers and executives overall. The overall performance award … Read More »

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