SB 863 is imposing new rules on self-insured employers and self-insured groups (SIGs) that could force some of them to nearly double their security deposits as well as increase their annual collections for workers’ comp liabilities. Others may choose to simply shut down. Self-insured groups also say the new rules create a conflict that would …
The state’s alternative security program (ASP) for private employers that are self-insured for workers’ compensation liability lost nine companies from the program while three new ones were approved to participate, according to state records. Under California law, self-insured employers must post a deposit that covers their estimated future liabilities of their open workers’ comp claims …
California’s self-insured employers incurred higher costs on their workers’ compensation claims in 2011 as the ratio shifted towards more indemnity claims and attorney involvement increased once again. Overall, new data from the Office of Self Insurance Plans (OSIP) shows that incurred costs were up 4.2% – or $24.7 million – last year to $619.6 million …
Administrative Concepts, the formerly self-insured professional employer organization (PEO) that the Office of Self Insurance Plans (OSIP) says stopped paying on its California workers’ comp obligations, had ties to a Florida workers’ comp insurance company that was seized late last year by Florida regulators. Administrative Concepts’ operations were also sold off to a competing PEO – …
A Florida-based self-insured employee leasing firm is in hot water with California regulators. Office of Self Insurance Plans (OSIP) director Jon Wroten declared Administrative Concepts Corp. to be in default of its obligations as a self-insured employer in California. It is a professional employer organization (PEO), according to the Department of Industrial Relations. The move …
Los Angeles County spends more than $1 million a day on benefits, wage replacement and administrative costs for employees. The costs are funded by the county’s taxpayers. Nearly one in eight county employees has a claim each year and gets money for it. Nearly a quarter of all claims were caused by “overexertion,” 24.5% of …
Outgoing Insurance Commissioner Steve Poizner chalked up some major victories in his fight to hold workers’ comp insurance carriers and their representatives accountable. During his four-year tenure he stood fast against approving rate increases; orchestrated top-down reviews of the Workers’ Compensation Insurance Rating Bureau of California, State Compensation Insurance Fund, and the California Insurance Guarantee …
Self-insured employers are taking umbrage at proposed changes to rules governing self-insured programs, especially planned redefinition of workers’ comp indemnity and medical-only claims. Representatives from self-insured groups (SIGs), specifically the California Alliance of Self-Insured Groups (CA-SIG), also filed a request for a public hearing as one was not initially scheduled by the Office of Self-Insurance …