New tactic introduced to battle opioid crisis but comes with complications

The opioid crisis that exploded at the end of 2015 is making headlines again as we close out the first month of 2016. During Charlie Baker’s State of the State address on Thursday, January 21^st, he noted that the opioid crises was “terrifying” and that four people die every day in Massachusetts due to opioid overdoses.  Many of these opioid addictions are linked to the overprescribing of the drug and lackadaisical manner of follow-up to prescription taking. Governor Baker pushed for a 72 hour prescription cap that would allow doctors to closely monitor the ingestion of the drug. Similarly, a new tactic for battling the epidemic has been made public; an implant used to fight the addiction of opioids.

Federal penalties for workplace safety violations set to increase

The new bipartisan budget was passed by both the House and the Senate, and signed into law by President Obama on November 2. Provisions within the Bipartisan Budget Agreement of 2015 will increase federal penalties for workplace safety violations that are handed down from the U.S. Occupational Safety and Health Administration (OSHA). These penalties have not increased since 1990. The percentage change in Consumer Price Index (CPI) over the past 25 years will be taken into account, and penalties will continue to rise with inflation in the future. The increase from current penalty amounts will range from 70-80%. Despite this increase, OSHA fines will still remain small versus those of other regulatory agencies.

Insurance industry looks to address opioid epidemic

The opioid crisis is very present in the mainstream news these days. One can read the tragic stories of heroin addiction and the easy access to opiates, and the ensuing statistics are staggering. This is a truly an epidemic of our times.

Opioids have been the topic of conversation within the insurance industry for a long while now as well. Those within the medical claims industry have been aware of the severity of the opioid overdoses for some time, but there have been some recent events that have heightened the focus on this issue. The Massachusetts Department of Public Health’s preliminary statistics indicate that the number of deaths in the state directly linked to opioid overdose for 2015  is over 750, and is therefore  high enough for officials to regard the issue as a public health crisis. The state estimates that the number of deaths so far in 2015 appear to be higher than last year during the same time period.

Workers’ Compensation outlook for 2016

Increases in employment growth, wage growth, medical inflation, and interest rates are all expected to have a significant impact on Workers’ Compensation premiums in the upcoming year.

Employment growth will most likely result in a rise in exposure-based premiums, and generate upward pressure on claim frequency. It is already affecting the severity by the indemnity payments that are being made on Workers’ Compensation losses. The industry reaction to the severity spike is that insurance carriers will focus their attention on job training and new employee selection.

The legal issues surrounding the independent contractor business model

The on demand economy, which consists primarily of tech startups, allows consumers to conveniently purchase goods and services via an app on their computers, tablets, and smartphones. In addition to being one of the fastest growing types of commerce, delivery speeds are lightning fast due to a large pool of contract workers who are available to provide goods and services around the clock. These workers are flexible enough to numerous jobs per day as a primary source of income, or a few per week as a secondary source. They are classified under most state laws as independent contractors rather than employees, and are able to decide when and where they perform work for these online or app-based companies.

Misclassifying independent contractors could cost you

As the economy changes, we have seen an increased use of “independent contractors” in all areas of business as a way to try and reduce employer expenses.

Let’s take ride-sharing startups Uber Technologies Inc. and Lyft Inc. as an example. A job as an Uber driver has many benefits. Drivers are their own bosses with the luxury of making their own schedules. But as independent contractors, they are responsible for myriad expenses. After car maintenance, gas, insurance, and taxes, plus a 20 percent commission to Uber, the driver’s pay is cut nearly in half, according to The Washington Post. In recent lawsuits filed in San Francisco, drivers claim the ride-sharing companies have been mislabeling them as independent contractors according to California’s labor law. The National Council on Compensation Insurance (NCCI) notes that if drivers were declared employees and therefore entitled to workers comp benefits, there would be no disputing which policy – commercial or personal – would cover auto accidents. Additionally, as the employer, Uber would be responsible for covering fuel costs and other work-related benefits like paid sick leave and vacation days.

As Ebola threats continue, insurance options respond – or will they?

While the current Ebola pandemic still remains primarily isolated to West Africa, the death of Thomas Duncan earlier this month in Texas has raised many concerns relative to the potential spread of the disease globally. At this time, two nurses responsible for treating Duncan have both tested positive for the disease, raising questions about whether American hospitals and their staff are adequately prepared to contain the virus.

As TRIA expiration lingers, work comp carriers show their own “go forward” strategy

Amid growing concern over TRIA/TRIPRA’s expiration on 12/31/14 and the government’s long-term commitment to a Federal  Backstop program, many Worker’s Compensation carriers have are thinking ahead when it comes to renewals and securing new business.

When Congress extended TRIA in 2007, it also revised the definition of “acts of terrorism” to include domestic terrorism. Domestic Terrorism has three components:

• All acts of terrorism outside the scope of the Act or the Foreign Terrorism Premium with an aggregate workers compensation losses in excess of $50 million.
• Earthquake: The shaking and vibration at the surface of the earth resulting from underground movement along a fault plane or from volcanic activity where aggregate workers compensation losses from the single event are in excess of $50 million.
• Catastrophic Industrial Accident: Any single event resulting in aggregate workers compensation losses in excess of $50 million.

Independent Contractors and Workers Comp – watch out for audits

Earlier in the year, one of my WGA colleagues wrote a blog about the growing challenge employers face trying to place Workers Compensation. While many companies have been able to navigate these difficult renewals, there may be more to be concerned about. Employers must avoid becoming complacent, especially when it comes to renewal prices and policy reviews. It’s important to remember that the estimated exposures used in the development of the annual renewal premium are subject to an end of policy year audit. While most facts discovered during an audit are the result of normal business actions and are not surprises, regulations surrounding independent contractors may catch some employers off guard. Specific employment practices will determine whether a worker is considered an employee or independent contractor and whether or not the employer is responsible to insure them. Therefore, employers should review the differentiating factors to ensure they have complied

Distracted driving and your employees: policies can minimize risk

A key underlying principle of risk management is minimizing losses, particularly the potential of severe losses. As the number of business professionals who use mobile devices on the job continues to grow, an area of considerable risk is distracted driving. Motor vehicle crashes are the leading cause of occupational fatalities in the U.S. and so far this year, and there have been an estimated 757,698 crashes involving driver’s texting or calling on mobile devices. That’s about one every 30 seconds. And when these crashes occur the potential for loss is multi-faceted, the driver (Workers Compensation), the automobile and any third parties. Employee-related car accidents expose employers to tremendous risks, from huge financial burdens to property damage and loss of productivity. Whether you are a small employer with a few sales people on the road or a logistics company with a huge fleet, everyone should adopt distracted-driving policies that establish clear rules