New trend sees large settlements from major drug developers

Earlier this month, a Massachusetts court ordered one of the world’s largest manufacturers of pharmaceutical and medical devices to pay $63 million to a teenage girl and her family after a jury found the company liable for an inadequate warning label on one of its medications. The verdict stems from a 2003 case when she developed toxic epidermal necrolysis, a rare disorder resulting from dangerous side effects from the medication that left her blind and caused her to lose most of her skin, after taking the Children’s Motrin brand of ibuprofen for a fever.

Johnson & Johnson is the latest major drug developer facing patient lawsuits stemming from patients’ adverse reactions to medications. In January, Bristol-Myers Squibb Co. agreed to pay $80 million to the patients and families who were harmed during the company’s clinical

Risky business: How much is enough when it comes to excess limits?

Despite your best efforts to know and control your exposure to loss, you can be sued. The numbers of law suits filed against companies are rising. Not surprising the size of the settlements are also on the rise. Lawsuits can occur from the most surprising places; an existing contract, a marketing strategy, a company owned automobile, your business activities and your premises.

How much umbrella or excess limits should a business carry? There is no standard formula to answer this question, because the answer is different for every customer based on a number of variables of their business.

Umbrellas and Excess policies are important because they give you additional (higher) limits on multiple policies by purchasing one policy. Most cover General Liability, Automobile, and

Latest EEOC’s report highlights rise in systemic suit filings

The U.S. Equal Employment Opportunity Commission (EEOC) recently published its 2012 Performance and Accountability Report. The Report foreshadows the EEOC’s strategic objectives for 2013. The EEEOC’s proposed strategic plan has established three objectives: (1) combating employment discrimination through strategic law enforcement; (2) preventing employment discrimination through education and outreach; and (3) delivering excellent and consistent service through a skilled and diverse workforce and effective systems.

The Report recognizes the EEOC’s record recovery of $365.4 million through the administrative process in 2012, an increase of $700,000 from 2011.

Wind energy tax credit extended as advocates hope for multi-year term

Wind power and clean energy advocates breathed a sigh of relief after Congress voted to extend the tax credits for research and development of renewable energy for 2013. Workers in the wind energy had feared the tax credits, which were set to expire at the end of 2012, would not survive amid the “fiscal cliff” bargaining in Washington last month. The deal includes a one-year extension of tax credits for wind power production and offshore wind projects, a significant sign of support for the nation to foster energy independence, develop a broader energy base and reduce carbon emissions.

The U.S. Department of Energy estimates that the wind industry could supply up to 20 percent of the country’s electricity by 2030. Companies that generate wind, solar power, geothermal and “closed-loop” bioenergy are eligible for the 2.2 cent per kWh Production Tax Credit (PTC), which

New FDA ruling on manufacturing requirements could lead to more warnings

The FDA issued a final ruling last month on Current Good Manufacturing Practice (CGMP) requirements for products that combine devices, drugs and/or biologics. The ruling will go into effect July 27, 2013, and clarifies CGMP requirements for products that are a mixture of any of these products as packaged together or as a single-entity combination. While in the past, the guidelines for some combination products (such as those that are manufactured and marketed separately) were fairly straightforward, the rules for “single-entity” and co-packaged combination products had been less clear.

While it is mandatory for all pharmaceutical companies to comply with CGMP regulations, they are not meant to be prescriptive instructions, since the regulations apply to so many types of drugs and devices. Instead, the rules are meant to offer a general framework which all

Getting non-profit employers ready for health reform play or pay rules

At WGA, we have found ourselves playing a key role in assisting our non-profit clients in taking advantage of the assistance they might be qualified for under the Patient Protections and Affordable Care Act (PPACA).  For one thing, the law includes a tax credit for small non-profit employers (25 or fewer employees) as well as for-profit businesses to maintain health insurance coverage for their employees. This was seen as a fairly big victory for non-profit employers that were wondering where they fit into the puzzle. But now the really hard work starts in trying to figure out how non-profits will comply with the Affordable Care Act and how will they manage to avoid penalties associated with the “play or pay” provision that goes into effect on January 1, 2014.

Although the PPACA picture is still evolving, non-profit employers need to start looking at their health insurance strategy and assess whether what they currently offer will fit the requirements

Confronting the challenges of the workers comp market

The placement of Workers’ Compensation risks has grown more challenging for employers over the past year with the shrinking of the overall market and expected double-digit rate increases in 2013. Nationwide rates were up 2-5% in 2012 and , for 2013, carriers are citing the need for rates to increase an additional 12-18% in most states. Also, the Experience Modification system is being revised by the National Council on Compensation Insurance (NCCI) for the first time in 25 years. The new formula will switch the emphasis from Loss Frequency to a more even balance between Loss Frequency and Loss Severity. This change will produce both winners, and losers.

In preparation for these challenges, we have established a multilevel solution for employers to gain greater control over the overall cost of their Workers’ Compensation programs. By combining the

Obamageddon

On Thursday, a Health and Human Services Executive joked that anyone who refers to the newly named State Marketplace as “an Exchange” as we now know them, needs to put a quarter in the jar. A new revenue source for HHS? Perhaps. The comment and loose change penalty would be cute if it didn’t come on the heels of several recent announcements and clarifications of additional fees and taxes being layered on employers to help pay for Obamacare. Please keep in mind these are the employers who already bear the financial burden of providing healthcare to their employees.

Recently, HHS clarified the Obamacare requirement for current health plans to pay a “fee” assessment of $63 for every employee and dependent covered under their medical program. This Transitional Reinsurance Program Tax is designed to help cover new high risks coming

Why a harder market is expected for healthcare risks in 2013

“There is hardly anything in the world that someone cannot make a little worse and sell a little cheaper, and the people who consider price alone are that person’s lawful prey.”                   – John Ruskin

As we enter 2013, there will be a great deal written about what to expect in the coming year with respects to Property & Casualty (P&C), Professional Liability and other crucial insurance coverage premiums for the healthcare industry. Brokers, insurance carriers, lawyers and consultants will all weigh in on their expectations for the coming year. These opinions can be valuable, however they often begin to sound the same. While I risk simply becoming another “voice” in this plethora of opinions, I do have some idea as to what 2013 has in store for healthcare risks.