Bankruptcy for Self-Insured Health Care District

The board of directors for the San Benito Health Care District declared a fiscal emergency. It gave district officials the authority to file a Chapter 9 bankruptcy petition with the U.S. Bankruptcy Court for the Northern District of California. The District operates the 25-bed Hazel Hawkins Memorial Hospital in Hollister and is self-insured for its … Read More »

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Private Self-Insureds’ 2021 Experience

include $2.8 billion for future medical expenses and $1.1 billion for future indemnity benefits. Self-insured employers’ workers’ comp liabilities are at their lowest level in roughly 20 years. In 2001, private self-insured employers had liabilities of $3.8 billion, but this soon topped $5 billion before topping out at $5.6 billion in 2013. The annual report … Read More »

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Self-Insured Group Industry’s Latest Numbers

According to the latest data from the state’s Office of Self-Insurance Plans, California workers’ comp self-insured groups (SIGs) are covering more payroll but fewer employers. The number of active SIGs is unchanged, but the number of active affiliates is down by nearly 10% from the prior year’s total. Covered payroll increased by over $225 million, … Read More »

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Budget Committee to Investigate DIR’s Vacancy Rate

The Assembly and Senate Budget subcommittees charged with reviewing the Department of Industrial Relations’ budget changes have reviewed the Department’s requests with limited comment, questioning, or pushback. However, one issue did catch the subcommittees’ attention: the 25% vacancy rate at DIR. Senate subcommittee chair Sen. Maria Elena Durazo (D-Los Angeles) announced that the panel would … Read More »

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Self-Insured Pursues Subrogation for Comp Claims

The City of Fresno is subrogating against two California contractors for a set of workers’ comp claims it contends were caused by the contractors’ negligence. The contractors allegedly mishandled the construction of a water treatment plant, which the City says resulted in two city workers becoming sick and filing workers’ comp claims. The City is … Read More »

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Workers’ Comp Costs Up for Some California Taxpayers

California’s self-insured cities, counties, special districts, and other public agencies saw an increase in workers’ comp costs during 2021 despite an overall decline in the number of newly reported workers’ comp claims. Overall, taxpayers paid $2.56 billion to provide indemnity and medical benefits to injured public employees – an increase of $81.9 million or 3.3% … Read More »

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Workers’ Comp Assessments Go Sky High

The Department of Industrial Relations demands on employers (insurers) and self-insured again sets new records. The agency says it needs nearly $1.4 billion to fund 2021 operations. It expects employers to pay an extra 5.9% of workers’ comp premium next year.  It is a 50% increase over the 4% surcharge they paid in 2020. The … Read More »

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