The State Compensation Insurance Fund, a government-controlled insurer which is the largest workers’ compensation insurance company in California, has announced that one of its efforts to cut expenses and streamline its operations will be to lay off approximately one quarter of its total 6,800 employees. Chief executive of State Compensation Insurance Fund, Tom Rowe, said that as many as 1,800 civic service workers will be eliminated by the end of June 2012, as the company has been determined to be overstaffed by about 30 percent. This is the first time…
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New report shows cost of workers’ compensation dropped during global economic crisis
In 2009, at the start of the global economic crisis, there was a decrease of 4.4 percent in the number of employees who had workers’ compensation coverage. According to a National Academy of Social Insurance report, this drop was the largest in twenty years. The result was that the cost to employers for providing the benefits decreased by 7.6 percent, reaching $73.9 billion that year; which is the most recent year with complete data. This drop closely mirrors the overall decline in employment in the country. According to the chair…
Read MoreDoctors criticize California worker’s compensation fund contract
Doctors and attorneys for injured employees have targeted the largest workers’ compensation fund carriers in California over a controversial change in the provider contract that has occurred within that state. State Compensation Insurance Fund is a nonprofit organization that provides the last resort worker’s compensation insurance. Its most recent revisions to its new contract for the medical provider network (MPN) has received significant criticism since its implementation. State Fund continues to stand by the alterations that it has made, claiming that patients will find an advantage in the changes, which…
Read MoreNFL lawsuit brings controversy to California workers’ compensation laws
A California labor law that has been drawing an extreme number of former pro football player workers’ compensation claims has been targeted by a Republican member within the California State Legislature, who seeks a complete overhaul. The leading Republican member in question, Curt Hagman (R-Chino Hills), is on the Assembly Committee on Insurance, and stated that the current framework for worker’s compensation within California is “outrageous”, in that it permits former professional athletes without any real tie to the state to make long-term injury claims within it. The reason for…
Read MoreWorkers’ compensation takes a step backward in California
Worker’s compensation in the state of California has been handed another notable struggle after the Fifth District Court of Appeal (DCA) in that state chose not to review the decision of the Worker’s Compensation Appeals Board (WCAB) with regards to the June 16, 2011 case of State Compensation Insurance Fund (SCIF) v. WCAB. This appears to be a potentially detrimental blow to the efforts of the Schwarzenegger administration to bring some health back into the permanent disability system of workers’ compensation in California. Though it is possible for the SCIF…
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