Category Archives: Litigation Costs

Florida WC Rates to Rise

As reported Tuesday on Insurance Journal.com, the National Council on Compensation Insurance (NCCI) has proposed a nearly 20% increase in the combined average rate increase from 17.1 percent to 19.6 percent.

This rate increase is in response to the decisions in the Westphal and Castellanos cases from the Florida Supreme Court last month and in April.

The Westphal  decision has prompted NCCI to propose a 2.2 percent projected increase. The court reinstated the 260-week limitation on temporary total benefits, which was limit before the 1994 reform. The Castellanos decision has prompted NCCI to propose a 15 percent projected increase. And a 1.8 percent projected rate increase related to updates within the Florida Workers’ Compensation Health Care Provider Reimbursement Manual (HCPR Manual) per Senate Bill 1402. The manual became effective on July 1, 2016.


I am willing to work with any broker, carrier, or employer interested in saving money on expensive surgeries, and to provide the best care for their injured workers or their client’s employees.

Ask me any questions you may have on how to save money on expensive surgeries under workers’ comp.

I am also looking for a partner who shares my vision of global health care for injured workers.

I am also willing to work with any health care provider, medical tourism facilitator or facility to help you take advantage of a market segment treating workers injured on the job. Workers’ compensation is going through dramatic changes, and may one day be folded into general health care. Injured workers needing surgery for compensable injuries will need to seek alternatives that provide quality medical care at lower cost to their employers. Caribbean and Latin America region preferred.

Call me for more information, next steps, or connection strategies at (561) 738-0458 or (561) 603-1685, cell. Email me at: richard_krasner@hotmail.com.

Will accept invitations to speak or attend conferences.

Connect with me on LinkedIn, check out my website, FutureComp Consulting, and follow my blog at: richardkrasner.wordpress.com.

Transforming Workers’ Comp Blog is now viewed all over the world in over 250 countries and political entities. I have published 300 articles and counting, many of them re-published in newsletters and other blogs.

Share this article, or leave a comment below.

Advertisements

ERISA, Stop Loss and Unintended Consequences

“The problems of the world cannot possibly be solved by skeptics or cynics whose horizons are limited by the obvious realities. We need men who can dream of things that never were.”

John F. Kennedy

“Some men see things as they are and say why. I dream things that never were and say why not.”

Robert F. Kennedy

“It is not because things are difficult that we do not dare, it is because we do not dare that things are difficult.”

Seneca

Those quotes were included at the top of my June 19, 2013 post, “Clearing the Air: My Defense of Implementing Medical Tourism into Workers’ Compensation” where I defended myself against the charge that I was offering “simplistic solutions” to medical travel and workers’ comp. In that post, and in “The Faith of My Conviction: Integrating Medical Tourism into Workers’ Compensation is Possible and is not a Pipe Dream” I acknowledge that is won’t be easy, but there are ways to do it.

In my last post, “Self-Insured Employers Fail To Adopt Medical Travel“, I discussed the reasons given by Irving Stackpole for why US employers have failed to adopt medical travel into their corporate health plans.

In conversations with a noted ERISA and medical travel expert, I have been making the case that laws and regulations such as ERISA, Stop Loss, and other “barriers” erected decades ago, in order to address specific problems such as tort claims, aggregate claim losses, etc., have the unintended consequence of holding back the globalization of health care, which includes workers’ comp.

I have addressed the legal barriers in comp in my White Paper, and found that there were outdated federal and state laws and regulations, intended to protect consumers, actually increase costs and reduce convenience, restrict public providers from outsourcing certain expensive medical procedures, and that federal laws inhibit collaboration, while state licensing laws prevent certain medical tasks being performed by providers in other countries.

Let me state here that I, in no way, am advocating the removal of these laws and regulations. My chief argument is this: our best minds have split atoms, launched satellites and men into space, discovered cures for diseases plaguing humans for centuries, but to send patients to other countries for medical care is impossible, and not worth pursuing, smacks of cowardice or fear that it actually might save money and provide better care. Do we not have the best minds to figure out how to deal with these “barriers”, or are we too fearful and litiginous a society that we have given up accepting new ideas?

Every industry is being affected by two powerful forces today: globalization and automation. With globalization, jobs, plants and other forms of capital are moving across borders. With automation, jobs that were once held by humans and considered very dangerous, are being done by robots, and soon other jobs will be done by artificial intelligence.

Neither force can be stopped, and how we address the consequences of these forces is what many minds are working on right now. But to say that one industry is going to draw a line in the sand and say, “NO” and stop globalization from happening is either insanity or a deliberate attempt to profit from the maintenance of the status quo that many along the supply chain of medical care services, both within the general health care space and workers’ comp have carved out for themselves.

When I was in college, I studied International Relations, and back then, globalization was a word very few outside of academia ever heard. There was an organization created in 1973 by David Rockefeller and Zbigniew Brzezinski called the Trilateral Commission. Its purpose was to foster better cooperation between the countries in North America, Western Europe and Japan (the Trilateral countries) and their multinational corporations. In the ensuing decades, the Commission expanded the membership to the rest of the world, and globalization became a household word.

Coincidence? I think not, since the heads of major US, Western European, and Japanese companies were members, and so were many politicians, including a former peanut farmer from Georgia and most of his top administration personnel. Other politicians after him also have been members, from both sides of the political spectrum.

Their chief goal is to allow capital, goods and jobs to cross national borders, or to eliminate them altogether, and I doubt they expected the health care industry to stand in their way. These are men who generally get what they want, and damn the consequences. We see this in the breakup of the European Union, which many of them advocated for years, just like they advocated for NAFTA, CAFTA, the TPP, and other trade deals, and don’t give a fig about the impact they have.

So, it is important to realize that the only real thing preventing medical travel is what unintended consequences have on the growth and development of the industry. This is where the industry needs to focus its attention, not on slick advertising, but on hard work and cooperation to overcome these “barriers”.


I am willing to work with any broker, carrier, or employer interested in saving money on expensive surgeries, and to provide the best care for their injured workers or their client’s employees.

Ask me any questions you may have on how to save money on expensive surgeries under workers’ comp.

I am also looking for a partner who shares my vision of global health care for injured workers.

I am also willing to work with any health care provider, medical tourism facilitator or facility to help you take advantage of a market segment treating workers injured on the job. Workers’ compensation is going through dramatic changes, and may one day be folded into general health care. Injured workers needing surgery for compensable injuries will need to seek alternatives that provide quality medical care at lower cost to their employers. Caribbean and Latin America region preferred.

Call me for more information, next steps, or connection strategies at (561) 738-0458 or (561) 603-1685, cell. Email me at: richard_krasner@hotmail.com.

Will accept invitations to speak or attend conferences.

Connect with me on LinkedIn, check out my website, FutureComp Consulting, and follow my blog at: richardkrasner.wordpress.com.

Transforming Workers’ Comp Blog is now viewed all over the world in over 250 countries and political entities. I have published nearly 300 articles, many of them re-published in newsletters and other blogs.

Share this article, or leave a comment below.

Tomorrow Is Today: Medical Travel Must Include Workers’ Comp

My fellow blogger, James Moore, has written a short, but to the point article about what might happen if workers’ comp disappeared tomorrow.

The outcome of such an occurrence would not only throw the workers’ comp industry into disarray, but clog up the courts with lawsuits from one end of the country to the other.

Without going into any great detail, I will let you the reader, decide for yourself if this is as dire as he predicts, by letting you read his article here.

What does this mean for the medical travel industry?

It means you need to get your act together, start marketing your services to insurance carriers, employers, insurance brokers so that they are aware that should workers’ comp disappear, there is an alternative to long delays in getting medical care for work-related injuries.

Plastic surgery, reconstructive surgery, dental care, and all the other medical services that medical travel currently provides will need to be supplemented by offering orthopedic and occupational injury and illness services that will save employers and carriers money, and provide the injured worker with the best medical care at the lowest cost, with a better outcome.

But none of this will matter if the industry does not seize the day, or as the Romans would say, “Carpe Diem”. This market will not come to you; you must go to it. And right now.

———————————————————————————————————————————-

I am willing to work with any broker, carrier, or employer interested in saving money on expensive surgeries, and to provide the best care for their injured workers or their client’s employees.

Call me for more information, next steps, or connection strategies at (561) 738-0458 or (561) 603-1685, cell. Email me at: richard_krasner@hotmail.com.

Ask me any questions you may have on how to save money on expensive surgeries under workers’ comp.

Connect with me on LinkedIn, check out my website, FutureComp Consulting, and follow my blog at: richardkrasner.wordpress.com. Share this article, or leave a comment below.

Want to Cut Your Litigation Costs and Lower Your Ex Mod?

Now that this year’s RIMS conference is over, and while we are all waiting for NCCI’S Annual Issues Symposium where they will present this year’s “State of the Line Report”, I thought I’d discuss two conversations I had today and yesterday with two individuals in CA, both of whom work for an insurance services company.

This company was mentioned in a video that was included in an article I wrote in December 2013. This video discussed how the company partnered with an insurance carrier to offer injured Mexican workers to get treatment in Mexico for injuries sustained on the job in CA.

From my conversations with these two individuals, I learned that not only are the employers covered by this insurance carrier saving money on medical care by having workers get treated in Mexico, but that it is also having the effect of lowering the litigation costs, as well as lowering the ex mod rates, because of the lower severity of claims due to the lower cost of total medical care spend.

With regard to lower litigation costs, one individual told me that 85% of all litigated cases in CA are from Latino workers. This is not due to their propensity to sue, but rather from the linguistic and cultural barriers they face working in Southern California.

I’ve mentioned the absence of linguistic and cultural barriers before with regard to the advantages of medical travel in work comp, but now I have outside proof that these barriers are responsible for higher litigation rates and costs.

On the other hand, having injured workers treated in Mexico at lower cost, and with better outcomes in facilities that are equal to or better than those across the border, especially the public facilities that may be impacted by budget cuts at the state level, and it is clear to see that employer severity (i.e., the overall cost of the claim) will have a tremendous effect on that employer’s ex mod.

In a past life, I worked on WC Statistical Reporting, so I know how important severity and frequency is to an employer. Frequency is the purview of safety people; severity can be dealt with, in part, by seeking lower cost, higher quality care outside the US.

The choice is yours.

————————————————————————————————————————————-

I am willing to work with any broker, carrier, or employer interested in saving money on expensive surgeries, and to provide the best care for their injured workers or their client’s employees.

Call me for more information, next steps, or connection strategies at (561) 738-0458 or (561) 603-1685, cell. Email me at: richard_krasner@hotmail.com. Ask me any questions you may have on how to save money on expensive surgeries under workers’ comp. Connect with me on LinkedIn and follow my blog at: richardkrasner.wordpress.com. Share this article, or leave a comment below.