Home > workers compensation compliance > Workers’ Compensation Insurers May Be the Next Target for Federal Regulation.

Workers’ Compensation Insurers May Be the Next Target for Federal Regulation.

Already there have been discussions about the federal government taking over the workers’ compensation industry just like health care. The result would be the same as it is today with unsupervised bureaucrats dictating a program no one can control.

A typical example is a major national workers’ compensation company writing policies in many States. I worked for one of their energy clients who was to keep track of engineers and project managers roving around different States overseeing their wind farms. Each state has its own rules and regulations on how to use its risk classifications codes.

The underwriters used NCCI risk classifications in some states and in others they assigned State codes. But in no event did the insurer have subcategories to save the client premiums—just the four digit code. Also, there was no tracking of the personnel in different states to take advantage of Reciprocity. Premiums were paid on the same personnel working in two States at the same time. When you add the fact some personnel lived in one state and worked in others, it gets complicated.

As long as insurers have no date stamped evidence tracking times and locations for roving personnel in different risk classifications, their audits can get ugly. So, it is up to the client to track the insurer otherwise penalties will be assessed on estimated hours and locations.

Another example is a manufacturer in Utah shipping personnel and cabinets to be installed in Washington State. The company did not keep track of the installer hours and ending up paying premiums in both States.

PRJC Project Compliance Calculator

Last week we talked about of risk classification assignment data using our PRJC Project Calculator. We did not tell about different States using different codes. No worries.

You can use contract employees as long as they are licensed and/or bonded. If necessary for compliance issues, refer to our CONCalculator program to get all the information required to hire this subcontractor including their FEIN.

When an employee (or subcontractor) hires on, they must be assigned with different classifications that apply to their work per record keeping requirements dealing with multi-classifications in the different States. Reciprocity can be ‘programmed’ in to trigger  any duplicated efforts to save your clients money.

Enter the Pay Rate and any Fringe Rate assigned to this Project. This is usually provided by the Prime Contractor where you are going to work. Workers’ Compensation requires a form with the Hire Date and Release Date for compliance.

After the Employees are in the program, you can edit them from the Employee/Subcontractor Report. If you wish to remove any of these records, you can use the editing feature on Employee/Subcontractor Report by placing RELEASED in the Release Date.

My point is that the program is completely flexible to meet any compliance insurance requirements and can be integrated, too.

If national insurers started tracking this data now, there would be no need for a national workers’ compensation federal program in the future.

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