Posts Tagged ‘misclassification’

Health Wonk Review and other noteworthy news briefs

Thursday, April 1st, 2010

Rich Elmore has posted a most excellent Health Wonk Review: Special Edition on Health Care Reform, which might also be called the “when pigs fly” edition. It has a good roundup of the health policy blogosphere’s reaction to the landmark legislation and a handy, must-see one page info-graphic of the time line.
Prevention in Health Reform – at the NIOSH Science Blog, John Howard, the Director of National Institute for Occupational Safety and Health, summarizes prevention provisions in the Patient Protection and Affordable Care Act and their implications for workplace safety and health.
Frequency – At Comp Time, Roberto Ceniceros looks at the way that health care reform might impact workers comp claim frequency. He explains that the data in this area is thin, but elicits some educated opinions on the topic.
More grim news from China – In addition to the increasingly desperate search for 153 miners which we discussed earlier this week, Ken Ward reports that in a different China mine, 12 miners have been killed and another 32 are missing.
Lifesaver – HR Daily Advisor tells us that survival rates for out-of-hospital cardiac arrest are only about 5% due to the length of time it takes to get treatment to the victim. The sooner defibrillation is started, the more likely the victim will survive. A recent series of posts discuss the benefits of adding an Automated External Defibrillator (AED) as part of a corporate wellness program. “OSHA says that immediate use of an AED can result in a 90 percent survival rate. With each minute of delay, however, nearly 10 percent fewer survive.” A follow-up post discusses related legal and training issues
Food processing – At The Pump Handle, Carlos Rich makes the case for food processing companies to treat workers more like humans and less like machines. We agree. Meatpacking and poultry processing plants are some of the most notorious environments for safety today. Many also play fast and loose with employment laws.
New blog finds

  • Fair Warning – “…an online nonprofit publication that seeks to provide robust, public interest journalism on issues of health, safety and corporate conduct.” The publication promises investigative journalism, legal and regulatory news, and reports from think tanks, academics, and advocacy groups.
  • Work Safety Blog from Blog4Safety – bills itself as “Your online resource for safety information, safety tips, and safety compliance.” It’s not a new blog, posts go back to 2008, but it is a new discovery for us. The blog is sponsored by The blog content has been provided by Texas America Safety Company (T.a.s.c.o.).

9/11 suit back to bargaining table – Southern District of New York Judge Alvin K. Hellerstein surprised a lot of people when he rejected the proposed $575+ million settlement for 9/11 first responders. His complaints? The settlement paid to victims was too little. Read more from law.com: 9/11 Lawyers Return to Bargaining Table to Refine Settlement.
Quick Takes

Fresh Health Wonk Review; also – the power of pink, the bunkhouse rule, and more

Thursday, February 18th, 2010

Clear the decks – it’s Health Wonk Review day and Brady Augustine has posted Health Wonk Review: “The Relationship Rescue” edition over at medicaidfirstaid. It’s a Dr. Phil-themed issue replete with art, videos, and commentary on some of the best of the health policy blogosphere. Check it out.
The Power of Pink – Sometimes those of us who work in workers comp are so focused on the process, the insurance issues, and following the dollars that we lose sight of the fact that we are actually in the people business. Our friends at the Work Comp Complex Care blog have a refreshing post that demonstrates the difference one person can make: A little pink goes a long way.
The Bunkhouse Rule – Can an injury that occurs at home be compensable? Yes, if your home is your employer’s property, according to the South Carolina Supreme Court. Read more details on the ruling in Roberto Ceniceros’ article in Business Insurance, Migrant worker’s injury in company housing ruled compensable.
Misclassification – The L.A. Times features an article by Dave Gram on a topic that is near and dear to our heart (search for “FedEx”): how companies are slashing payrolls by calling workers independent contractors. The Internal Revenue Service and 37 states are cracking down on this practice, which resulted in an estimated underpayment of $2.72 billion in lost Social Security taxes, unemployment insurance taxes, and income taxes just in the year 2006, according to the Government Accountability Office. Many experts think that the economic downturn has exacerbated the problem of employee misclassification.
Good PT and bad PT – At Managed Care Matters, Joe Paduda asks How many dollars are wasted on physical therapy?. He suggests that while he’s a believer in the benefits of physical therapy, but advocates for clinical guidelines to separate the wheat from the chaff.
More on the Toyota mess – At Claims Magazine, Mary Anne Median writes that . Her article focuses on issues associated with claim-handling, subrogation, and litigation. It’s a fascinating read – here’s just a sampling:
“To break it down; damages, subrogation, and settlements will all be affected, not only for current, but also past and future accidents involving Toyotas.
This also leaves us with questions surrounding the diminished value of the vehicles. In determining that a vehicle is a total loss, what is the value? Can we apply this diminishing value factor when we are establishing what the insured’s or claimant’s vehicle is worth? How does this affect the resale and salvage value?”

Annals of Fraud: Trifecta for Bay Area GC

Friday, May 29th, 2009

In the world of workers comp, there is no lack of opportunity for fraud. We’ve seen doctors rip off the system by billing for services that were either never provided or not needed. We’ve seen employees fake injuries (relatively rare) or malinger on comp long after injuries have healed. We’ve seen insurance agents pocket money intended for insurance premiums. We’ve seen insurance adjusters embezzle claims funds. We’ve seen state comp bureaus (Ohio) engage in fraud. And we’ve seen employers rip of the system in a number of ingenious ways.
Which brings us to the saga of NBC Contractors (presumably no relation to the television network), a California general contractor. Three owners of the company – Monica Mui Ung, 49, of Alamo; Joey Ruan, 31, of San Leandro; and Tin Wai Wu, 28, of Millbrae – have been charged with 48 counts of insurance fraud, labor code violations and tax fraud. Bail was set at $535,000 for each of them. (You can check out their bare-bones website here.)
With Ung listed as the (minority, female) owner, NBC Contractors qualified for preferential treatment on public projects. Between 2003 and 2007 they successfully bid on 27 public works projects, including El Cerrito City Hall and Piedmont Elementary School.
Cheater’s Delight
According the indictment, NBC used a trifecta of cost cutting measures:
1. They underpaid workers comp premiums a total of $1.45 million, by misclassifying their workers into lower risk occupations and by under-stating payrolls
2. They violated fair labor standards, by failing to pay for overtime or sick leave, impacting 19 workers a total of $3.6 million
3. They underpaid payroll taxes on workers, depriving state and federal government of tax revenues
With these (criminal) “cost savings,” NBC was able to underbid their competitors. These business practices cheated a lot of people: NBC’s own workers, their insurance carrier, their competitors, and all law-abiding businesses who played by the rules. We can only hope that the quality of their work was up to standards, which would at least keep their customers off of the long list of parties directly injured by their actions.