In an advisory rate-finding decision sure to please California employers, Insurance Commissioner Steve Poizner yesterday rejected the Workers' Compensation Insurance Rating Bureau's recommendation that insurers increase comp rates.

You can see the decision here:
http://www.insurance.ca.gov/0400-news/0 ... /Decision_

The WCIRB's forecasts have often been way off the mark. They're a gang that can't shoot straight. Once again, Poizner takes them to the woodshed. It's a script that will play well in his 2010 gubernatorial run.

But there are stories within stories.

Poizner notes the exceptional profitability of California's comp insurers at this time. He urges further premium reductions to pass along more savings to employers.

But Poizner makes no mention of the pitiful percentage of premium dollars paid for worker benefits. Here are some stats and charts to remind you about the scope of the problem:
http://www.workerscompzone.com/index.ph ... 518-115548

Stay tuned.

Julius Young
www.boxerlaw.com
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SCIF's Monday announcement that it will not be increasing its comp rates at this time puts added focus and pressure on Steve Poizner.

The State Compensation Insurance Fund announcement follows rate filings by a number of insurers (including Chubb) who plan to reduce comp insurance rates even further.

The Workers' Compensation Insurance Rating Bureau has called for a 5.2% average rate increase.

Take your pick. Increase or decrease.

Within the next couple of days, Insurance Commissioner Steve Poizner will issue a recommendation on the "pure premium rate" for California workers' comp insurance. Poizner's findings aren't binding on insurers, but they do set the tone. The Commissioner's findings often are cited by the business press as a sign of the system's health.

Poizner, a near-certain 2010 candidate for governor, would be sending a strange signal if he recommends rate increases at a time that the state's largest insurer (SCIF) has recommended holding the line.

And that's without even considering that the system now delivers a pitiful percentage of premiums to disabled worker benefits.

For more information on all of this, see my blog posts:
"WCIRB Recommends Rate Hike"
http://www.workerscompzone.com/index.ph ... 024-095337
"California Workers' Compensation Fixed So That Insurer Profits Are
Greater Than Benefits Paid To Workers"
http://www.workerscompzone.com/index.ph ... 518-115548

Stay tuned. I'll be posting on the Poizner announcement.

Julius Young
http://www.workerscompzone.com/index.ph ... 518-115548
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It's Thanksgiving. Being a lawyer has been good to me and most of my colleagues in the workers' comp field.

But perks?

The workers' comp industry doesn't have many perks. Yes, the occasional A's game ticket. And periodic educational junkets and forums. Not much else. You can only use so many pens and hi-liters from the logo merchandisers.

Silicon Valley paved the perk highway in the 90s.

Before the dot-com bust, Silicon Valley firms had on-site catered meals and Friday beer busts. A well-fed worker may work longer hours. In the tech world, it's part of the start-up culture. And some of that may be coming back with Web 2.0.

But leave it to the sharks to figure out major league perks.

Personal valet services to pick up the dry cleaning and fetch items from the hardware store or chase down concert tickets. On-site tailoring services. In-house psychologists and "personal coaches" to help you figure out your life.

Lunches featuring Spanish wines and sushi. Emergency nanny services. In house yoga classes. A nap room.

These are some of the tricks being used to "retain" top talent at some of the nation's large corporate law firms (NOT your workers' compensation lawyer, for sure). Apparently Gen X and Gen Next lawyers are having trouble committing to careers which pay big bucks in exchange for crushing billable hour requirements. They want a family, friends and a life.

It's hard to enjoy Thanksgiving stuck in the office working on the big merger and acquisitions deal. Thus, the focus on lavishing perks to keep these young sharks happy.

Think I'm making this up? Check out today's New York Times piece by Lynnley Browning:
http://www.nytimes.com/2007/11/22/busin ... mp;ex=1195

Meanwhile, I wish my readers a Happy Thanksgiving. I hope you'll be able to spend some time with family and friends.

Here in the Bay Area, I'm looking at the azure-colored San Francisco Bay and a sliver of the Pacific beyond the Golden Gate.

It all looks pristine. From looking at it, you'd never know it had recently been befouled by a recent oil spill.

In many ways, that's much like workers' comp these days. Reforms were a success if the measure results in reduced costs for some employers. But the reforms have many darker aspects. I'll continue to explore the nooks and crannys of the system.

Julius Young
www.boxerlaw.com
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Veterans Day 2007.

The Iraq War continues, unstopped by a Democratic Congress that lacks the votes to override the Bush-Cheney team.

It's odd how you can live your life forgetting about the conflict thousands of miles away. The Bachelor is still agonizing about who he'll pick for the rose ceremony. The stars are still dancing. Dan Rather is still on TV. The Iron Chefs are still doing battle.

I'm sure some of my readers are concerned about whether we're in the run-up to an attack on Iran and how we can end waterboarding and close Gitmo. Others are more concerned about Islamofascism, the vulnerability of U.S. ports, and linkage of Iran, Syria, Hezbollah and Hamas.

And, unfortunately many of us don't know the kurds from Kurds from Curds and Whey. Blackwater and Blackhawks. It's hard to keep it straight.

And finding Bin Laden is proving harder than a blind person successfully finding Where's Waldo.

But this is a workers' comp blog. Let's don't forget that the Pentagon is doing this war (and the Afghan one) by renting armies of outside contractors. Wackenhut. Blackwater. Halliburton. DynCorp. L-3/Titan. And other names you've never heard of.

There are over 100,000 of these contractors in Iraq.

Contractors that do hauling and logistics work. Convoy and embassy security guards. Laundry. Translators. Infrastructure workers. The list goes on and on. And those are the workers we know about. Undoubtedly there are "off the books workers" doing unnamed missions that officially don't exist.

Some are probably professional soldiers of fortune. doing the work for thrills and ideology. Others may just be workers hoping to make some
extra cash.

With little or no oversight, these workers have become the backbone of U.S. operations in Iraq. And when things go bad-as they did recently with news that Blackwater contractors were involved in killings-they can go very bad. DynCorp's employees were involved in a nasty incident in the last few days:
http://www.nytimes.com/2007/11/12/world ... nted=print

These workers are getting maimed and killed at alarming rates. Whatever your position on the war, veterans day is a day to stop and think about these folks.

Here's a link to a piece in the San Diego Union about these workers:
http://www.signonsandiego.com/uniontrib ... tract.html

In many cases, they're covered under the War Hazards Act, a Federal law.

From time to time, I'll be looking further at that act and these workers. They're veterans. Civilian veterans. The new face of war.

Julius Young
http://www.boxerlaw.com/attorney_bios/julius_young.html
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If you thought the insurance industry couldn't stoop lower, think again.

Health Net (based out of Woodland Hills near L.A.) has been paying bonuses to employees based on how many sick policyholders they can drop from coverage.

In doing so, Health Net rescinded over 1,500 policies, saving itself over $35 million in medical treatment payouts. This practice was revealed in litigation over Health Net's cancellation of a cancer patient's coverage. Without coverage, Gardena hairdresser Patsy Bates had over $200,000 in unpaid treatment bills.

Folks, I'm not making this up.

It's part of an industry-wide trend among health insurers. Cherry pick for healthy people, refuse to cover people with conditions that might lead to illness, and rescind policies of people who do have coverage.

Other health insurers are rushing to deny that they have bonus structures tied to rescissions. That may or may not be true.

Bates has not been able to complete all her treatments due to Health Net's action.

Check out today's Los Angeles Times article by Lisa Giron. You can see it by clicking here:
http://www.latimes.com/business/la-fi-i ... ome-center

A comprehensive healthcare reform this year looks increasingly unlikely. Therefore, incremental work needs to be done with the system.

So the ball bounces to the Insurance Commissioner.

Steve Poizner, the incumbent Republican, needs to address insurer cherry picking and rescission practices. As a presumed 2010 candidate for governor, many eyes will be on Poizner as we see whether he is willing to be tough with the industry.

Stay tuned. Over the weekend, I'll be doing a piece on the top 10 developments in California workers' comp for the 3rd quarter of this year. And in the coming week, I'll be doing more about the recommendation by the WCIRB that insurance rates be increased.

You can subscribe to the blog by using the RSS reader buttons on the lower part of the right side menu.

Julius Young
http://www.boxerlaw.com/practices.html
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