http://www.mychsi.com/index.php/news/read CHSI NEWS en-us http://www.mychsi.com/index.php/news/read/147/companies-band-together-to-cut-workers-comp-costs http://www.mychsi.com/index.php/news/read/147/companies-band-together-to-cut-workers-comp-costs In the six years that hes owned Steves Plumbing and Hardware in Ventura, Dennis Stanley has not had to file a single workers compensation insurance claim to cover an employee injury. Still, the cost of the required coverage inched up often, Stanley said, usually without explanation. Fed up, Stanley opted for a change late last year, dropping his large insurance companys policy to join a self-insured group of small, independent retailers like himself. Hes already paying a little less, and in a year or two he should be saving even more. Im not saving a huge amount, but like I say, what I hope to recoup is the benefit of getting something back, Stanley said. Part of your premiums are repaid to you over time if you stay in it (the insurance fund) and it continues to grow. Ojai Lumber made the same change at the start of 2008. Richard McArthur, the stores manager, estimated hes paying nearly 20 percent less than what the giant State Compensation Fund charged to cover his 12 employees. More important to him, however, is that the self-insured group does a better job of handling claims and getting injured workers back to work more quickly, he said. We sometimes had to wait months to get someone cleared to go back on the job, McArthur said. The two Ventura County retailers are among 110 members statewide of the Home Improvement Self-Insured Group, an organization of small- to medium-sized lumber yards and hardware retailers working to provide more efficient, less costly workers comp coverage to members. California has 26 self-insured business groups so far, and membership is growing rapidly. Nearly 400 businesses opted for self-insurance last year, a trend noted for five years, said James Ware, chief of the states Office of Self Insurance Plans, which regulates the groups for the Department of Industrial Relations. Like traditional insurance companies, self-insured groups must comply with myriad state regulations that include underwriting, which sets annual premiums and standards based on closely monitored actuarial studies, said Jim Scanlon, CEO of Scanlon Guerra Burke Insurance Brokers. The Woodland Hills-based company is senior broker for the Home Improvement Self-Insured Group. Injury claims are processed by independent claims administrators. Click here to read the full story. Source: Ventura County Star By: Jim McLain http://www.mychsi.com/index.php/news/read/145/strong-defense-encouraged-in-stress-claims http://www.mychsi.com/index.php/news/read/145/strong-defense-encouraged-in-stress-claims California -- Strong Defense Encouraged in Stress Claims By Greg Griggs, Editor Reprinted courtesy of WorkCompCentral Inc The key to defending against stress add-ons in disability cases is good claims handling and comprehensive depositions, suggests the guy who handles comp for The Happiest Place on Earth. Such cases can add thousands if not tens of thousands of dollars to a claim, said Tim East, director of risk management for Walt Disney Co. The veteran workers comp executive is set to moderate a panel on the subject next week at the eighth annual Workers Compensation Policy Conference held by the California Coalition for Workers Compensation in Newport Beach. Stress claims have always been a problem in California. Now theyre more challenging, because theres a higher threshold for direct claims, so they come in on indirect claims, East said. Under California statute, an injured worker must prove any psychological problems are primarily caused by industrial factors. So stress complaints often come linked to a physical condition, such as a back or shoulder injury, where the worker also complains of having problems sleeping or the onset of sexual difficulties following an accident, East said. East is quick to say its not a fraudulent attempt to game the system, but usually a result of a worker having trouble coping with life after an injury. Its not that people are trying to get something they dont think they deserve, its just, These bad things happened to me and I think work caused it, he said. For example, East said after someone experiences a serious injury on the job he is likely at home full time, taking medication, not exercising and spending his days watching television or otherwise lounging. Consequently, he doesnt sleep at night because his routine is thrown off. And being off work on temporary disability means a reduced income, which can lead to economic pressures, friction with a spouse and family and other stressful circumstances. Its a very difficult area where you have the injury and the resulting stress, sleep disruption and various changes that create legal and medical issues about compensability, East said. They focus on the work problems, because its external to them. To defend against such claims, East said its important to properly investigate and, when necessary, to thoroughly depose the applicant and the applicants treating physician and mental health examiner. What you do in the deposition is you have to know how to get into the other areas of stress, such as family-life issues. Maybe theres a child custody issue or divorce contributing to the stress, he said. You need to learn what other things are going on to see if the applicant has satisfied that 51% threshold. An injured worker also may be asked about other painful situations in his life, such as being a victim of crime, filing for bankruptcy, having experienced the death of a close relative, or being the victim of sexual molestation or domestic violence. Psychologist David C. Hall, a qualified medical evaluator who will speak on the panel, said an employer must ensure the mental health professional providing treatment has important related information available for consideration. That treater needs to have all the medical records, investigative reports, statements from coworkers, personnel files. Anything thats going to help you as an employer to explain this case and defend it, you need to get to that first doctor, said Hall. By not including the information in the original report, which becomes part of the official medical file, the applicant and his or her attorney has the right to exclude that information later in the process, according to Hall. You need all the stuff you can find because you dont know if youre going to have another chance to defend yourself, he said. California Labor Code Section 3208.3, which deals with psychiatric injuries, states that employers need not pay compensation if if the injury was substantially caused by a lawful, nondiscriminatory, good-faith personnel action. And Hall said the good-faith defense is strong if an employer can show that the worker was not subjected to any unreasonable work conditions or treated differently than other employees. Any change on the job can be stressful, new coworkers, having your hours cut, disciplinary actions, about to be laid off, Hall said. There are millions of reasons that people can get upset at work, and its critical to the equation to document those things. Attorney Theodore A. Penny, a Sherman Oaks defense attorney, will be the third panelist for the 90-minute session, which is set to start at 3:15 p.m. July 21. Earlier that afternoon, there will be concurrent sessions on controlling rising pharmacy costs in workers comp cases and new trends and tactics in permanent disability cases. The conference runs Wednesday through Friday, July 23 at the Hyatt Regency Newport Beach, 1107 Jamboree Road. http://www.mychsi.com/index.php/news/read/144/the-ca-recess-update-from-workers-compensation-action-network http://www.mychsi.com/index.php/news/read/144/the-ca-recess-update-from-workers-compensation-action-network Last week, California lawmakers began their summer recess, despite the fact that July 1 marked the start of a new fiscal year and California does not have an approved state budget. In the run-up to run out for summer break, however, lawmakers did deal with a flurry of legislation, including workers compensation bills. Overall, this legislative session has offered a mixed bag on workers compensation issues. Legislation that would control increasing medical costs or address the destabilizing court rulings handed down last year on permanent disability ratings havent materialized. On the other hand, some bills that would have dramatically increased costs were stalled in fiscal committees. (See AB 1994 and AB 1603). Below are summaries of several workers compensation bills where legislative action continues: AB 933 by Assemblymember Paul Fong (D-Cupertino) would prohibit physicians from reviewing requests for medical treatment (also known as utilization review) unless the physician is licensed in the state of California. This bill would also impose new re-application requirements for Medical Provider Networks. It is supported by labor unions, California-based physicians and lawyers for injured workers, who want UR doctors under control of the state Medical Board. It is opposed by employer organizations, local government groups and the state agency that oversees Californias workers compensation system, who say that a state license unnecessary because California uses national treatment guidelines and that the bill will limit the supply of UR doctors and drive up costs. (Governor Schwarzenegger vetoed similar legislation in 2008.) AB 2253 by Assemblymember Joe Coto (D-San Jose) would double the maximum time after retirement (from 5 to 10 years) that cancer developed by firefighters is still presumed to be work-related. The bill is supported by public safety labor unions and lawyers representing injured workers, who say the time span between exposure and cancer symptoms can be longer than the current 5-year maximum. The bill is opposed by employer groups, local governments and taxpayer groups who say the bill will increase costs for cities and counties by making virtually any instance of cancer among firefighters compensable as a workers compensation claim. AB 2397 by Assemblymember Jose Solorio (D-Santa Ana) would double the amount of time (from 1 to 2 years) that public safety officers are eligible to receive their full salary if they are off work due to a workplace injury, subject to an agreement with their employer. Under current law, public safety officers can receive their full wages in lieu of temporary disability benefits or longer under a negotiated salary continuation plan. The bill is supported by public safety labor unions and lawyers representing injured workers who say added flexibility is needed in providing salary continuation to injured safety officers. The bill is opposed by employer and local government organizations who say that the bill could result in up to four years of mandated wage replacement benefits at substantial cost to local governments. AJR 42 is a resolution by Assemblymember Solorio that expresses the California Legislatures support for a bill pending in Congress known as the Medicare Secondary Payer Enhancement Act. The MSPEA would address delays and uncertainties that exist today in calculating how much to reimburse the federal government for Medicare expenses that should be paid for instead by a third party under a liability or workers compensation settlement. This resolution is supported by WCAN, local government, small business organizations, and lawyers representing injured workers. Source: Workers Compensation Action Network Click here to read the full article. http://www.mychsi.com/index.php/news/read/141/more-california-employers-are-diving-into-self-insurance-pools http://www.mychsi.com/index.php/news/read/141/more-california-employers-are-diving-into-self-insurance-pools Source: Los Angeles Business Times Written By: Howard Fine More and more California employers are diving into pools. Theyre not swimming, though. Theyre getting workers compensation insurance. Taking advantage of a provision of the 2003 workers compensation reforms, theyre seeking lower rates and better service by self-insuring in industry groups. Take Chip Kurzeka, owner of Franklins Hardware in Woodland Hills. Not only has his premium dropped 10 percent in the four years since he jumped into a pool with other home improvement businesses, but sometimes he gets a refund. That happens when the pool finishes the year with more money than required by state law. Weve been very pleased with this program, Kurzeka said. These self-insurance pools give employers more control over how claims are handled and can keep a lid on costs. But it can be risky. If claims costs increase for those in the self-insured group, state law requires the members to put in more money to ensure the pool remains solvent. In traditional workers compensation insurance, employers purchase coverage from insurance companies, sometimes using a broker to find the best deal. But in a self-insured pool, each employer member puts its own money into the cooperative and a third-party administrator oversees the handling of claims. Over the last six years, businesses have grouped to form nearly three dozen of these pools in industries from trucking to auto dealerships to credit unions and private secondary schools. However, six pools have voluntarily disbanded because the employer members didnt want to make additional contributions to meet the state requirement of 135 percent of the anticipated cost of claims. And in a seventh pool, made up of building contractors, claims hit the point where the state had to bring in a conservator to run the pool until it could be disbanded and all the members could find other workers compensation coverage. But that risk has not deterred employers from joining self-insurance groups. Since 2005, the number of employers participating in these groups has tripled, topping 2,500 last year, according to figures from the state Office of Self Insurance Groups, a unit of the state Department of Industrial Relations. Much of that growth took place despite a steep drop in overall workers compensation premiums that resulted from the 2003-04 reforms. In the last year, premiums have bottomed out and, in some high-risk industries like construction, have started to rise again. Click here to read the full article. http://www.mychsi.com/index.php/news/read/142/hisig-to-cover-more-retail-stores http://www.mychsi.com/index.php/news/read/142/hisig-to-cover-more-retail-stores HISIG Gains Regulator OK for Expansion into Retail The Home Improvement Self-Insured Group (HISIG), a California Workers Compensation program, has received state approval to provide coverage to an expanded list of retail store operations. HISIG, launched in 2005 to help employers control Workers Comp costs in the retail home improvement sector, added its 110th member on June 1. The regulatory approval takes immediate effect and will make HISIG the only Workers Comp self-insured group program available to many types of retail stores. Some of the stores the group hopes to attract include sporting goods, drug stores, hobby and crafts, electronics, beauty supply, art supply, gift shops and other stores that fall into the broadest retail classification used by the Workers Compensation Industrial Rating Bureau. Garth Smith, owner of Dale Hardware in Fremont and the Chair of the Board of Trustees, expects significant growth ahead for the California Workers Compensation program. There are a number of trends in California Workers Comp that worry employers. The reforms of 2004 that controlled runaway costs are under heavy pressure from applicant attorneys and you can see some erosion. In HISIG we have introduced programs like our nurse triage that have been very successful in helping our members help employees and control costs. We are excited that more retail stores are going to be able to take advantage of what we have been able to do. The HISIG expansion will be lead by Scanlon Guerra Burke of Woodland Hills and their selected team of other California insurance agencies. SGB became the master broker for the HISIG program when they added Rusty Russell to their team in April. Russell was the broker who worked with employers to establish the Home Improvement Self-Insured Group in 2005. http://www.mychsi.com/index.php/news/read/138/california-restaurant-sig-seen-as-model-for-health-reform http://www.mychsi.com/index.php/news/read/138/california-restaurant-sig-seen-as-model-for-health-reform The California Restaurant Mutual Benefit Corporation (CRMBC), a self-insured group workers compensation plan, has been so successful that it has been nominated by a prominent journalist to serve as a model solution for broad healthcare reform. Peter Roff, writing for the FOXNews website, traced Congressional deliberations of healthcare reform to this conclusion: There is an alternative, already in place in certain parts of the country, in which small- and medium-sized businesses are banding together into co-ops called self-insured groups, which are proving to be a good deal for employers and employees. These self-insured groups, in which businesses pay into a fund that is used to administer the program and to pay out claims, give employers more control, and more responsibility, over what goes on in their warehouses, on their shop floors and in their plants. Roff reported that California has adopted and supports the self-insurance option despite pressure from parts of the legal and financial community that oppose it. State Insurance Commissioner Steve Poiznerpointed to the self-insurance model as an instructive lesson of ways to make the system work, he wrote. Roffs article quoted David Mitchell, chairman of CRMBC, on the benefits of self-insurance to his industry: We have reduced claims frequency, fought and won against fraud, helped employees in crisis and developed new technologies, Mitchell said, and added that self-insurance makes for a better workplace all around. Jim Leftwich, founder and CEO of CHSI, the program administrator and financial risk management firm that manages CRMBC, agrees that the self-insured group workers compensation model could be adapted to broader healthcare management: Self-insurance provides new solutions and access to entrepreneurial ingenuity, Leftwich said. Those who seek to reform the nations healthcare system could learn from successful workers compensation experience. Our member companies have more wellness, more education and more safety training than is available to companies simply purchasing health insurance or that would be available through government-operated plans. Leftwich brings the conversation back to the degree of responsibility and control that employers experience in a self-insured plan. They enjoy being able to roll up their sleeves and do some of the work to cut their costs and create safer workplaces, he said. Look at it this way: nobody can control health care costs, but we can work to control the safety of our workplaces to help avoid expensive claims. In an often-problematic industry, CRMBC has become Californias largest self-insured group with more than 3,000 members and annual payroll greater than $1 billion. Statistics presented at its annual meeting reflect improvement across the board since the plan was founded in 2005: Workers compensation premium has been reduced from more than $9 per $100 of payroll to less than $3. Number of claims has been reduced from about 2.5 per $1 million of payroll to less than 1. Eighty percent of claims are closed within a year, far below the traditional industry average in the range of 50-60%. $14 million has been returned to members in dividends despite Californias high standard for financial security of self-insured groups. Leftwich identifies aggressive incident management and rapid, technology-assisted claims services as elements that raise CRMBC operations to its successful level. Injured employees are able to speak with a nurse by phone immediately through the CHSI Solutions Hotline that serves most languages. Informed counseling gets the employee off to the right start for recovery. The system takes the guesswork out of first-aid for employers resulting in fewer self-insurance claims and lower costs. Physician referrals are managed to assure the best outcomes. CHSIs website provides unique technology and tools to CRMBC members to help them report and manage claims, manage finances electronically and access tools for safer workplaces. The leading edge technology provided to CRMBC group members is unique to CHSI managed programs. Web-based training resources are supplemented by CHSIs experienced risk control professionals who provide onsite, customized safety and claims training to address the real-world needs of restaurant operators. As California requires claims processing independent of the management company, CRMBC employs the professional claims administrator Intercare, an industry leader in the state. Aggressive file management and rapid claims closure has contributed to CRMBCs overall success. In addition to ordinary claims, CRMBC enjoys complete protection against catastrophic claims through A rated excess insurance carriers. All on-the-job employee injury claims from a single major occurrence an earthquake, a violent attack or other event are covered completely after the group has met its basic retention limit. The excess insurance protection ensures that members never have to worry about serious losses by the group, Leftwich points out. In an industry ordinarily fraught with workers compensation issues, the California Restaurant Mutual Benefit Corporation stands as a model for employee safety and perhaps to serve the broader scope of general health benefits. Source: Self-Insurance Institue of America (SIIA) Download PDF version here. http://www.mychsi.com/index.php/news/read/139/chsi-team-members-give-back-to-communities http://www.mychsi.com/index.php/news/read/139/chsi-team-members-give-back-to-communities You make a living by what you get. You make a life by what you give, according to Booker T. Washington. Despite the current economic downturn and global strife, CHSI employees display an unbridled passion for giving back to their communities. They have a profound understanding that life is better lived serving others. In collaboration with the Disney program, Give a Day, Get a Disney Day, Megan Ranftl and Joe Burgess suggested that CHSI give each of its employees the opportunity to take one paid-day off to volunteer at a charity of their choice. Disney launched its program in September 2009 to encourage 1 million individuals to volunteer at participating charities for a free one-day ticket to a Disneyland or Walt Disney World themed park. The CHSI team embraced the challenge, not only by taking part in volunteer work within the Disney guidelines, but also by participating in local charities that were not a part of the program. This further exhibits that the heart of the CHSI team does not beat for the tangible rewards granted for their good works, but for the quiet satisfaction of knowing their little acts make big differences. Some recent events the CHSI team has participated in: The Reno team held a holiday food drive, which produced 222 lbs. of food to support the areas nutrition programs. Four members from the Las Vegas team participated in Kendall Tenneys 9th Annual Run for a Wish to benefit the Make-A-Wish Foundation of Southern Nevada. A member of the Las Vegas team donates time every month to the Make-A-Wish Foundation. Three Las Vegas team members donated time to help Habitat for Humanity. One member from the Las Vegas team walked in the Southern Nevada March for Babies event benefiting the March of Dimes. Two members from the Oceanside team volunteered at the Tri-City Medical Center Carlsbad Marathon and Half Marathon. Members from Las Vegas team ran in the 15th Annual Susan G. Komen Southern Nevada Race for the Cure. A member of the Reno team volunteered to present the Choices Program to a freshman class at a local high school. The Choices Program is designed to teach young people that the choices they make today are important to their future. http://www.mychsi.com/index.php/news/read/129/self-insurance-a-local-engine-for-economic-development http://www.mychsi.com/index.php/news/read/129/self-insurance-a-local-engine-for-economic-development Weve all heard that old adage If its not broken, dont fix it. That saying can apply today to the self-insurance industry. Self-insurance isnt broken, but it is always in jeopardy of falling into despair unless the self-insurance industry and insurance regulators continue to work together to preserve and protect what we have.Self-insured entities can feel good about the overall national success and strength of the self-insurance industry in light of the economic downturn. Self-insurance remains a very popular and positive mechanism to protect businesses and public entities around the country against the risk of loss. It provides a mechanism to increase business profitability and a value-added resource for a safe workplace environment.Given the current state of the economy, local communities around the country are searching for ways to spur economic development, a cornerstone of sustainable progress. Self-insurance provides an often overlooked opportunity to boost local economies.Click here to read and download the full article.Source: The Self-Insurer http://www.mychsi.com/index.php/news/read/128/transportation-self-insured-group-reports-strong-performance http://www.mychsi.com/index.php/news/read/128/transportation-self-insured-group-reports-strong-performance Nevada Workers Comp Group May Return Surplus to MembersThe Preferred Transportation Self-Insured Group (PTSIG), a Nevada Workers Compensation program, today reported a decline in work injury claims costs of 71% since 2005. The steep drop in costs will allow the group to consider a return of surplus to employer members in 2010. Responding to the sustained strong performance of the PTISG, the Board of Trustees announced plans to open membership to qualified businesses in the warehousing and automotive service industries to help more Nevada employers lower costs and stay competitive.Board Chair George Balaban commented:Our safety and claims management programs have been delivering better results every year. We have been especially pleased with our highly successful subrogation efforts. We have recovered close to $1,000,000 for the group and our employer members with more on the way. When employers are hit by injuries and costs caused by third parties, somebody should go to bat for them. We are aggressive and successful on subrogation because PTSIG exists to help its employer members and their employees. Nevada has business success stories and this is one of them.PTSIG is managed by CHSI, a Nevada based company that specializes in the design and development of programs that can be cost control alternatives to traditional insurance for small and mid-sized employers. Work injury claims for PTSIG are administered by Cannon Cochrane (CCMSI), an independent claims management company.About PTSIG: The Preferred Transportation Self-Insured Group was launched in 1999. The program is regulated and audited by the Nevada Division of Insurance, Self Insurance Section. Membership is open to qualified businesses that are committed to the prevention and management of work injuries. All new members are approved by the Board of Trustees, representing the membership.www.ptsig.net http://www.mychsi.com/index.php/news/read/127/guidelines-for-success-from-a-captive-manager http://www.mychsi.com/index.php/news/read/127/guidelines-for-success-from-a-captive-manager The single most important priority for a startup, early-stage, or mature RRG is governance, according to Ted Hall, President of CHSI Captive Insurance Managers, LLC.He should know. Hall is a CPA, MBA, and widely recognized expert in specialized areas of alternative risk transfer. He has licensed seven RRGs, has two in the pipeline, and is a Director of Physicians Indemnity RRG, Inc., a medical malpractice writer in Florida, Nevada, and Texas. Hall is author of the three-volume Captive Insurance Manual: The Alternative Market and numerous scholarly journal articles. He is a former tax partner of the accounting firm, Ernst Young.While every RRG Board bears ultimate responsibility for the success or failure of the company, many Boards cede virtual control to a captive manager. This can spell trouble, Hall points out, especially if the manager is responsible for both underwriting and sales/marketing. Theres a potential conflict of interest that can lead to relaxing underwriting standards to gain market share,he warns. The IBNR (incurred but not reported claims) can take down a small company if strict underwriting standards are not maintained.Hall does not expect Board members to be insurance experts. However, based on decades working with RRGs, he found that the most successful have Boards who learn enough about the insurance business to measure the captive managers performance independently.Board Structure ImportantIn addition to the nuts-and-bolts of licensing and regulatory compliance, Hall works with founders to develop a business plan and create an organizational structure for effective Board governance. He recommends that Boards create committees that oversee underwriting and claims, finance and audit, marketing, legal, and investments. These committees need to be activated as the RRG grows so Boards can make informed judgments on critical issues. You cant rely on the captive manager to make decisions for which you as a board member are responsible to the shareholders, he declares, but being a hands-on Board member doesnt mean becoming a micro-manager. As a captive manager, CHSI works with the state of domicile to meet all licensing requirements and continues as the RRG administrator for regulatory compliance. We recommend independent, professional underwriting and claims organizations to perform these functions under Board supervision independent of marketing, he explains.Read full article here.Source: Risk Retention Reporter http://www.mychsi.com/index.php/news/read/126/siia-political-influence-on-display-at-white-house-health-care-summit http://www.mychsi.com/index.php/news/read/126/siia-political-influence-on-display-at-white-house-health-care-summit February 26, 2010 Less than one hour into yesterdays White House Health Care Summit it was apparent that SIIAs lobbying efforts on Capitol Hill continue to be effective.Self-insurance was specifically mentioned when Republican John Kline (R-MN), the Senior Republican on the Committee with jurisdiction over ERISA, offered a proposal to create Association Health Plans, which would allow small businesses to pool together and self-insure health benefits.SIIA has been the leading advocate for AHPs for more than a decade and association lobbyists have been in communication with Senator Kline and others to encourage that they suggest this free market initiative during the summit. Other participants, including Senator Kyl (R-AZ), a senior Republican on the Senate Finance Committee, commented on the importance of self-insurance and to maintain ERISA preemption.To hear the latest about the latest legislative developments first hand, be sure to attend SIIAs Legislative Conference scheduled for March 10-12, 2010 in Washington, DC. Source: Self-Insurance Institue of AmericaRelated Washington Times Article http://www.mychsi.com/index.php/news/read/125/two-san-diego-men-plead-no-contest-on-wc-fraud-charges http://www.mychsi.com/index.php/news/read/125/two-san-diego-men-plead-no-contest-on-wc-fraud-charges Insurance Commissioner Poizner Announces Two San Diego Men Plead No Contest in Workers Compensation Fraud CasesDuo Agree to Forgo $60 Million in Medical Liens and Bills Pending at WCABCalifornia Insurance Commissioner Steve Poizner today announced that David Wayne Fish, 47, of San Diego and Birger Greg Bacino, 50, of Rancho Santa Fe, have plead no contest to felony charges of compensation or inducement for referring clients for profit in a workers compensation scheme and agreed to release $60 million in medical liens and bills prior to entering their plea. They will serve three years of probation.Fish and Bacino are the principal owners of Premier Medical Management Systems Inc. The business was charged with making false and fraudulent workers compensation claims and filing false tax returns. At its peak, Premier Medical owned and operated five clinics in the greater Los Angeles area and contracted with more than 100 medical providers. More than$60 million in liens and bills created by Premier Medical Management Systems Inc. were pending before the Workers Compensation Appeals Board (WCAB) and as part of the negotiated disposition, Fish and Bacino agreed to drop those claims.Getting kickbacks for referring medical payments is illegal and drives up the costs in the system, Commissioner Poizner said. Because of our work and that of the Los Angeles District Attorneys office, we were able to prevent $60 million in fraudulent and unnecessary claims in being made. We will continue to work hard to eliminate these unneeded costs to keep workers compensation insurance affordable.A California Department of Insurance (CDI) Fraud Division investigation alleged that Fish and Bacino purchased large blocks of workers compensation client referrals from a prominent attorney television advertising service. CDI investigators reviewed more than 100,000 financial records in tracing the flow of money.The investigation found that when a referral was received for a prospective workers compensation case, the client was sent to doctors and other health care providers that had a business relationship with Premier. Premier would do the billing and collection work in return for a 50 percent or more fee of what they collected. More than 16,000 patient referrals were purchased through the attorney advertising service.After the client had been sent to the doctors and other healthcare providers, the client would then be sent to various workers compensation attorneys that had a financial relationship with Fish and Bacino.The Los Angeles County District Attorneys Office, the Franchise Tax Board, U.S. Postal Inspection Service and the National Insurance Crime Bureau made major contributions to the investigation.As part of the negotiated plea, CDI received $900,000 as reimbursement for investigative costs.In return for the lien dismissals and payment of the costs of the investigation, both suspects will be granted felony probation. Sentencing will occur June 25, 2010 according to the Los Angeles County District Attorneys Office.Source California Department of Insurance. Website at www.insurance.ca.gov. http://www.mychsi.com/index.php/news/read/122/home-improvement-self-insurance-group-announces-record-growth http://www.mychsi.com/index.php/news/read/122/home-improvement-self-insurance-group-announces-record-growth Annual Meeting to Highlight Strategy for California EmployersThe Home Improvement Self-Insured Group (HISIG), a California Workers Compensation program for home improvement and retail employers, has reported today a 73% increase in membership in 2009 in advance of its annual meeting in Rancho Mirage on February 12. The HISIG Board of Trustees will report a strengthening financial position driven by a 45% reduction in the length of serious work injury claims and the introduction of a nurse triage program to assist employees immediately following an injury.Garth Smith, owner of Dale Hardware in Fremont and the Chair of the Board of Trustees, sees a period of significant growth ahead for the California Work Comp self-insured group.We really saw improvement this year in our ability to prevent work injury claims and manage costs. Home improvement retailers are fighting to be competitive in this tough economy. This year we were able to lower costs for members of HISIG so they could invest in their companies and their employees. The programs we introduced in 2009 for nurse triage and rapid claims response are continuing to drive strong outcomes. We expect expanded membership and larger surpluses in 2010.The annual meeting for the group at the Agua Caliente Resort in Rancho Mirage will feature expert presenters on employment law, Workers Compensation claims issues and 2010 legislation. Advance registration for the meeting points to a 300% increase in attendance over prior years. http://www.mychsi.com/index.php/news/read/121/chsi-launches-new-technology-division http://www.mychsi.com/index.php/news/read/121/chsi-launches-new-technology-division The division focus will be on licensing the companys innovative, patent-pending software solutions application called the Connections Management System.In todays market, policy administrators, underwriters, claims managers, and employers all need efficient, cutting edge technology to address workflow inefficiencies. Real-time access to claims information, medical provider instructions, and underwriting guidelines is essential for smarter and more cost-effective operations. The Connections Management System is a web-based software solution that provides complete policy administration functionality built specifically for self-insured groups, private self insured companies, captives, and public entities.Eric Robinson, Chief Operating Officer of CHSI, is heading up the new division. Robinson brings more than 23 years of executive IT management experience to the position and has been instrumental in the delivery of the Connections Management System to the self-insured market. Earlier this year the Home Improvement Self-Insurance Group (HISIG) implemented the Connections Management System under CHSI management, and in less than one year HISIG has experienced significant improvements in operational efficiencies. Their membership has grown 24%, and yet they have reduced workers compensation claims and associated costs by 51%, said Mr. Robinson.Lee Mashore, Vice President of Information Technology Services at CHSI Technologies, originally developed the Connections Management System software to simplify CHSIs own management approach. Mashore saw the need for an affordable system that would provide a single interface for the multiple functions essential to CHSIs business rating and underwriting, policy administration, billing receivables management, contact management and claims integration.Policy administration via the Connections Management System software solution is a key component of good management and regulatory compliance, said Lee Mashore. Connections provides alternative risk finance vehicles with the look and feel of a real insurance company; thus, providing growth opportunities within their respective markets.Connections Management System is a highly configurative, easily customizable web-based application that can be securely accessed anywhere the customer has an internet connection and a web browser. The software application also provides a web portal for use by the insured, which in turn allows self insured managers to give their insured a single interface for submitting claims, paying premiums, requesting endorsements and reviewing policy documents. Read the full articlewww.chsitechnologies.com http://www.mychsi.com/index.php/news/read/117/crmbc-wins-fourth-conviction-for-work-comp-fraud http://www.mychsi.com/index.php/news/read/117/crmbc-wins-fourth-conviction-for-work-comp-fraud California Restaurant Mutual Benefit Corporation Steps Up Enforcement EffortsSacramento, CA January 18, 2010 The California Restaurant Mutual Benefit Corporation (CRMBC) announced today its 4th conviction for Workers Compensation fraud against an employer member.Tamisha Carson pleaded no contest today in Solano County court to one count of insurance fraud, charged as a misdemeanor. Carson had been videoed in April 2008 staging an injury at a Vallejo Taco Bell.Carson had claimed that a box of soda had fallen on her foot while she was attempting to move it. Video surveillance reviewed by the Taco Bell franchisee, PRB Management, showed that she had in fact placed the box on her foot and called for help. Intercare, the claims management company working with the CRMBC, denied the claim and launched its investigation through its Special Investigation Unit. The case was pursued and conviction obtained by the Solano County District Attorney.Carson will pay $1,255 in restitution as well as additional fines and fees and will be on probation for 2 years. She will have 75 hours of community service and has been ordered to make at least 7 completed job applications per week and maintain full-time employment once she has a job.Chair of the Board of Trustees for CRMBC, David Mitchell, said: We are stepping up our fight against Work Comp fraud in California. Small employers are the backbone of our economy but they often dont get a lot of help. CRMBC is going to continue to drive support to its members for safer workplaces, fewer injuries and an end to fraudulent claims. http://www.mychsi.com/index.php/news/read/115/sigs-winning-in-the-soft-market http://www.mychsi.com/index.php/news/read/115/sigs-winning-in-the-soft-market This soft market seems unending. Despite rising cost trends (obesity, medical inflation, aging workforce, high unemployment), workers compensation rates and premium continue to decrease (albeit at a slower rate) as competition remains intense for top line and market share. These cost trend facts alone should trigger increasing premium charges.A continued soft market is even harder to comprehend when you consider what has happened to industry surplus. Losses, as a result of the economic crisis, have taken a huge bite out of industry capital. In a report published by Insurance Information Institute it was noted that, 16.2% of industry surplus was eradicated by financial losses ranking it as the largest capital event over the past 20 years. This percentage drop was larger than Hurricane Katrina (13.8%), Sept. 11, 2001 attack (10.9%), and Northridge Earthquake (9.6%). Historically, each time surplus growth is negative it triggers a rapid turn in the market from soft to hard. That has not happened yet.Adding to this perfect storm and continuing to pull industry results down is investment performance. Investment gains, due to low interest rate environment fell by 51% in 2008 (decreased by $33 billion) and are expected to decrease again in 2009. Realized capital gains also took a hit in 2008. The industry posted realized capital losses of nearly $20 billion in 2008 and another $8 billion in the first quarter of 2009. As the industry can no longer depend on investment income and capital gains to produce significant returns, attention must turn to producing an underwriting gain. Insurers should start underwriting more selectively and raise prices to produce a risk adjusted rate of return. It has not happened.Why? To quote Edmund Ted Kelly, Liberty Mutual CEO, Common sense and property/casualty insurance are mutually contradicting. (Source: Bests Review magazine September 2009)What does all this mean for SIGs? SIGs create SUSTAINABLE Competitive Advantage:Despite the soft market and a lousy economy, SIGs are holding their own. Sure, new business is hard to win and payrolls of existing members and premiums are down, however; current members are loyal and stay with the SIG even when the insurer competition is cheaper. Why? Isnt workers compensation a commodity? Doesnt the rational business owner seek the lowest price? How can SIGs retain their market share and loyalty of members in a marketplace where competition is irrationally under pricing the product?SIGs are winning in this soft market as they have developed a sustainable competitive advantage that builds client loyalty. The sustainable competitive advantage enjoyed by SIGs falls in 3 main areas: Mission, Structure and Services. Mission: SIGs mission is to work to maximize benefit to their members, not to maximize SIG profits. The SIG fulfills this mission by providing WC insurance to members with consistently low, stable rates, year in and year out. (Note: Consistently low does not always mean the cheapest.) Structure also plays an important role in a SIGs sustainable competitive advantage. Members are the owners of the SIG. They earn a share of the underwriting profits and investment income. This fact allows members to take a longer view when considering WC purchasing decisions.Services too are also very important in developing a SIGs sustainable competitive advantage. The SIG that develops unique and powerful services that benefits members generates lower losses, differentiates itself from the competition and cements member loyalty while creating a value proposition that favorably impacts new business sales even during prolonged soft markets.While the soft market continues to baffle those of us in the industry that underwrite, its comforting to know that SIGs will remain viable and prosper regardless of the length and depth of the soft market.MECC Enhances SIGs Sustainable Competitive AdvantageMECC has developed an exclusive suite of on-line services and content tailored to the SIGs competitive environment. SIG clients utilize MECC people, technology and online tools to enhance and tailor a member experience thats substantially different from their competition. The strategic and tactical support provided by MECC to SIG clients to enhance their competitive edge is unique. Contact Steven Link for more information and demonstration of these service capabilities.MEECCs Program Enhances SIGs Sustainable Competitive AdvantageMECCs Strategic Partnership program is just one way MECC is teaming up with SIG clients to help differentiate them from their primary competitors. A SIGs competitive advantage rests with their ability to provide unique services and resources that member companies value, the ability to generate lower losses for its members and the SIGs ability to find and implement effective ways to build the SIGs brand. All of these things contribute to member retention and win more new business, regardless of the market cycle.So how does a SIG heighten Brand awareness and differentiate their organization from the competition effectively? It all starts with the SIGs vision, and the Brand is driven from that vision. In order to build a strong Brand, the SIG must efficiently communicate the value of the organization, creating the perception of high value and quality. Perceived quality is one of the most important contributors to the SIGs ROI.The SIG can drive this perceived quality by considering three items: What does the SIG want their members to feel about the organization? What personal experience does the SIG want to provide to the member and what perception of value does the SIG want to deliver to its members? The bigger question to the SIG is, what space do you want to occupy in your market? (competitive pricing, dependable, unique services, and/or other positive attributes).Other factors a SIG should consider are its core competencies. What does the SIG do best? How does the member benefit? What services are the most meaningful to them? And most important, what makes your SIG a great investment for the member? If the SIG starts with their vision, building the Brand from there, then the answers to these questions should come easily.The SIG vision should also include indirect costs for the SIG member. Knowing and understanding the Total Cost of Risk (TCOR) can determine what services would most likely benefit the members.That brings us to the unique services MECC has designed with the SIG in mind. For close to a decade, MECC has invested in technology and resources that are specifically designed to assist the needs of SIG clients that apply to all participants in the SIG (Administrators, Risk Managers/Loss Prevention Specialists, Members, Agents, Board of Trustees and Agents).MECCs Client Services, Technology and Marketing resources help SIG clients from beginning to end with enhancing the SIG Brand and the development of customized services. MECC not only provides the technology, but has dedicated people in place to walk SIG clients through the entire process.MECCs customized webinars are a quick and efficient way to reach many members at once to provide information on industry trends and practices. For SIGs interested in offering web-based seminars, MECC will handle the administrative process which includes coordinating the SIG webinar invitation, assistance determining the topic, providing the speaker, etc.Attending members can also earn CEU credits via their SIG. This is one example of the benefits that SIG membersbip can provide with little investment on the part of the SIG.Other MECC services include a detailed benchmarking report that helps administrators evaluate the strength of the current program, establish objectives and identify areas for improvement.MECC also offers an online safety management program, which can be customized to the SIGs specifications and branded as the SIGs product.These services help the SIG to improve loss performance while allowing the SIG to differentiate themselves in their market. The combination of performance and differentiation can greatly improve a SIGs sales position.For SIG clients that have taken advantage of the Strategic Partnership program, the results have been member loyalty, a stronger brand and less pressure on rates during the soft market.The partnership approach enhances the SIG Brand for all stakeholders: agents, members and prospects. So if you are a SIG that is looking for a competitive advantage, MECC is your partner.Click here to download the article.Source: Midwest Employers Casualty CompanyBy Steve Link, Executive Vice President Marketing http://www.mychsi.com/index.php/news/read/110/nevada-restaurant-self-insured-group-member-speaks-out-about-health-care-costs http://www.mychsi.com/index.php/news/read/110/nevada-restaurant-self-insured-group-member-speaks-out-about-health-care-costs Let smaller firms competeBy: Jean H. CardSource: The Washington Timeshttp://www.washingtontimes.com/news/2009/nov/08/let-smaller-firms-compete/Charlie Abowd is a restaurant owner in Carson City, Nev. He thinks it is his responsibility as a business owner, and a moral person, to provide health insurance for his employees. He does so at great cost and, as a result, suffers a competitive disadvantage to national restaurant chains that have more affordable coverage for their employees.Mr. Abowd is worried that he wont be able to continue offering health insurance for much longer, as his rates have increased 125 percent since he began offering it 12 years ago. As of this week, reports indicate that premiums are expected to increase an average of 15 percent this year for small businesses like Mr. Abowds - about double the rate of last years increases.Mr. Abowds story is terribly typical in the small-business community.His employees are also insured, through his restaurant, for workers compensation in the event of on-the-job injuries. For that coverage, Mr. Abowd has been able to join with other restaurant owners to self-insure against claims as a member of the Nevada Restaurant Self-Insured Group. His workers compensation plan is affordable, and the coverage is excellent - comprehensive, with fast servicing of claims.So now Mr. Abowd has a question: Why hasnt anyone in Washington proposed to let him cover his employees for health care in the same affordable way he can for workers compensation? He asks an excellent question.The ability to create genuine insurance co-ops (entities, like Charlies workers compensation group, that are started, run and owned by the businesses or individuals joining them) would be a godsend for small business. With state-level workers compensation self-insurance groups (SIGs) having proved themselves so effective, it seems ridiculous that Congress would not want to replicate them nationally for health insurance.Heres how the workers compensation SIGs work: In states where the regulatory structure allows it, smaller businesses have come together to pool their financial resources and self-insure against workers compensation claims. Claims are paid directly out of that pool of money. Groups hire companies that specialize in designing and managing self-insured group programs. (In Charlies case, its Nevada-based CHSI.) On behalf of the group, the companies hire claims professionals, build safety programs and support member employers.If the group has pooled more money than is necessary to cover all claims, that extra money eventually is returned to the businesses bank accounts because it still belongs to the group - versus adding to the profits of an insurance company.The incentive for fewer claims and for the speedy processing of claims is incredibly straightforward and powerful: Fewer injured workers means money back. Quickly processed claims mean the money comes back sooner. (In comparison, with traditional insurance, an open claim means the insurance companys capital remains invested and working for the insurance company - not for the insured.)Because of this strong incentive, the businesses in these self-insured groups have begun to take an interest in worker safety like never before. Education, training, safe and healthy work environments - these are rapidly moving to the top of the priority list for these employers.Imagine the power of small and midsized businesses pooling their money to self-insure against health claims. Imagine the ownership they would take over the issue of their employees health. No longer surrendering huge sums of money to mammoth insurance companies, these smaller firms would be in charge of their own health-related finances. If their employees collectively remain more healthy than not, theyll get money back. Talk about an everyone wins scenario.Self-insurance is consumer-driven health care coverage. And heres the best part: Self-insured small-business groups would be extremely fierce competition for big, traditional insurance companies. Arent those the things the president and both sides of the congressional aisle claim to want the most?So why are small-business purchasing groups still missing from the legislation and from the debate? The idea is not even new; it has been proposed under different names in the past - for example, Association Health Plans (AHPs). Creation of AHPs has passed out of a small-business-friendly U.S. House over and over in years past - but the insurance lobby has brought out its big guns when AHPs have gone to the Senate ... and they have shot down this would-be competitor time and time again.This time, the Senate should stand up to the big insurance lobbyists and deliver some real competition in the free market. They should give small businesses the slingshot they need.Call them self-insured groups. Call them small business co-ops. Call them Association Health Plans. Small business owners like Charlie Abowd wont care what you call them. If Congress delivers this for small firms, theyll be able to affordably cover their employees, which is what they want to do. They will then reward Congress with job creation and with their votes. Can big insurance really compete with that?Jean H. Card is a writer in Alexandria. She has served as a speechwriter for U.S. secretaries of Treasury and labor as well as the attorney general and is a former senior official at the U.S. Small Business Administration. http://www.mychsi.com/index.php/news/read/109/fox-news-why-self-insurance-is-the-answer-to-our-health-care-mess http://www.mychsi.com/index.php/news/read/109/fox-news-why-self-insurance-is-the-answer-to-our-health-care-mess The real way to fix our health care mess is to follow a self-insurance model.Despite its current problems, the U.S. economy is still the envy of the world, largely because it is still more or less governed by an entrepreneurial spirit. The idea that a person with a new idea or a better idea can, as a general principle, succeed through hard work and yes, luck, is still a vital component of what used to be called The American Dream.Its also in danger of becoming extinct. Thanks to the heavy hand of government and the rapacious nature of the lawsuit brigade, individual initiative is being taxed, regulated and sued if not out of existence then into the backseat of the American economy. Big business, in partnership with big government and big law, is attempting to level the playing field among existing actors and push the little guy, the future competitor, out of the way.Health care reform is one example of that idea in practice. The efforts underway by the Obama White House, by Senate Majority Leader Harry Reid and House Speaker Nancy Pelosi to force a government-run health insurance system on working Americans will be a job killer. The public option provision requires billions in new tax dollars gathered from fines and assessments on businesses as well as outright federal levies to be funded. And it would allow big business to rid itself of future legacy costs by abandoning its current health insurance programs. Such a move would require them to pay a substantial penalty but, say more than a few analysts, that penalty would likely cost a company less than it would to maintain its current plan.One real loser in such a move would be the workers, who would then be forced into a public option, government-run program long on waiting time and rationing and short on quality care. Another would be American small business, who would be saddled with the mandate and the expense and, in effect, handed a competitive disadvantage against the bigger companies.It doesnt have to be this way. Even now, small business is showing that there are sensible, market-friendly alternatives to government-run plans, even with mandates in place, which represent a better deal for employers and their employees.Like health care may soon be, most every American employer carries a mandate to purchase workers compensation insurance, which they typically do through the traditional insurance market. For employers, despite what the trial bar may allege, such insurance is at the heart of small business because it means employees are taken care of in the event of accidents on the job. Contrary to the odd example that often makes news, an injured worker is an unproductive worker, meaning that is it not just the employee who suffers economic damage when someone is hurt on the job.In the government-run, government-mandated model, employers are left mostly on the sidelines once they sign the check putting the policy in force. An employer with an injured worker is left out of the equation once an accident occurs, leaving them at the mercy of the insurance company administering the plan, the state which may or may not investigate and their attorneys, who may or may not hammer out a settlement in which the employer has little or no say.In such a system, which already sounds like what the Obama administration is proposing for health care, the affected parties have little to do and, as a result, have little incentive to improve on the system. But there is an alternative, already in place, in certain parts of the country in which small- and medium-sized businesses are banding together into co-ops called self-insured groups, which are proving to be a good deal for employers and employees.These self-insured groups, in which businesses pay in to a fund that is used to administer the program and to pay out claims, give employers more control, and more responsibility, over what goes on in their warehouses, on their shop floors and in their plants. The process of self-insurance requires, for economic reasons that business owners make safety work for them. By sharing risk, the businesses that participate in the self-insurance process can deliver the benefits mandated by law in ways that help rather than hurt the companys bottom line. And, unlike the government model, in a way that helps keep costs under control.In California, where problems with the workers compensation system are legendary, recent reforms pushed by Gov. Arnold Schwarzenegger helped reduce costs in the short-run by nearly 60 percent. As soon as the reforms went into effect, however, the trial lawyers and other who benefit financial from the government model immediately started to put pressure on the politicians to start raising the costs again. Rather than buckle to the pressure, State Insurance Commission Steve Poizner, who wants to follow Schwarzenegger into the governors mansion, pointed to the self-insurance model as an instructive lesson of ways to make the government program work.Critics say the self-insurance model is loaded with risk and that workers could suffer as a result. Those who utilize self-insurance disagree.David Mitchell, who chairs the California Restaurant Mutual Benefit Corporation the states largest self-insurance group acknowledges the Schwarzenegger reforms were invaluable. But what has really made the difference for CRMBC, he says, is that our employers are more involved.We have reduced claims frequency, fought and won against fraud, helped employees in crisis and developed new technologies, he says, adding that is makes for a better workplace all around. The government model, by contrast, does not really serve anyone well. Rising costs hurt businesses and that, in turn, hurts workers. The self-insurance model, because it operates based on real risk in which plan participants have an ownership stake, simply makes better sense which makes it a model, not just for workers compensation reform, but for other types of insurance as well.Source: FOXNews.com Written By: Peter Roff Peter Roff is a senior fellow at the Institute for Liberty.http://www.foxnews.com/opinion/2009/10/29/peter-roff-obama-health-care-insurance-public-option/ http://www.mychsi.com/index.php/news/read/107/crmbc-wins-third-work-comp-fraud-conviction http://www.mychsi.com/index.php/news/read/107/crmbc-wins-third-work-comp-fraud-conviction The California Restaurant Mutual Benefit Corporation (CRMBC) announced today another conviction for felony Workers Compensation fraud committed against one of its employer members. Armando Landa pleaded guilty in Ventura County to one count of Work Comp fraud after being arrested for collecting benefits illegally and making false statements while an employee of CRMBC member Chicago for Ribs in Ventura.Landa received over $30,000 in tax free disability payments while receiving treatment over a 15 month period. During this period he took a job at another restaurant. At a deposition following his arrest, Landa denied working at any job since the injury. Intercare, the claims management company working for CRMBC, used its fraud investigation unit to develop information for the California Department of Insurance, Fraud Division. The District Attorney for the County of Ventura prosecuted the case.Fraud hurts everybody, commented David Mitchell, Chair of the CRMBC Board, the largest California Workers Compensation program of its kind. Employers face a challenging economy and Work Comp fraud makes it that much tougher. It can cost jobs. Our aggressive anti-fraud campaign is one of the reasons that we have been able to cut costs for our employer members.CRMBC employer members have 24 hour access to nurses for claims support through the CHSI Solutions Hotline. The CHSI Hotline also features a confidential fraud report service. CHSI, the program administrator for CRMBC, has built a secure member website for real time access to claims information and safety resources and has developed Connections, a patent pending web based management system for Workers Compensation self-insured groups and captive insurance programs.Work Comp fraud goes beyond the few employees who abuse the system, said Ron Paine, Vice President of Risk Control for CHSI. Phony providers and double billing are a major problem. Employees can be taken advantage of by unscrupulous attorneys. Our new One Source doctor network and our employee support program are going to help us in beating Work Comp fraud. http://www.mychsi.com/index.php/news/read/105/how-to-use-safety-as-a-recruitment-and-marketing-advantage http://www.mychsi.com/index.php/news/read/105/how-to-use-safety-as-a-recruitment-and-marketing-advantage Tough regulations and the employers Duty of Care are here to stay - get used to it.If youre doing the right thing, lets turn it into a positive marketing advantage - your competitors will be impressed and maybe a little embarassed... Talk about safety in your marketing material. Sure, the main message focuses on good food, beverage and service, but find a place to also say something like: 
Were proud of our strong commitment to safety and hygiene. All staff undertake regular work and food safety training, and management is commited to the proper implementation of all OHS regulations. We believe that safe food and safe work practices are the foundations of a successful business. Your website is a great location for this. Impress corporate and government customers. Increasingly, these clients are required to patronise venues (especially for large functions) that can show their health and safety standards - in writing. Have the information readily available on your website or in the function package. Show your obsession with cleanliness. The toilets are fresh and dry, staff wear clean uniforms, and if customers see behind the scenes, prep areas are neat and hygienic. Gloves are used properly (theyre designed to protect customers, not the delicate hands of staff) and questions about ingredients and allergies are met with a knowledgeable answer. Bar staff wash their hands between collecting dirty glasses and making fresh drinks etc etc... Use safety as a plus in recruitment. Share information about your safety policies and procedures at the interview, and make it part of your questions. With so many school students doing hospitality, applicants may arrive with more safety and hygiene training than existing staff - will you impress them? Include OHS responsibilities in all Job Descriptions and show them the OHS and Food Safety Manuals. You want the careful, methodical ones...this is something they respond to positively. Build staff engagement through your safety committee. Motivation is built through meaninful activity - it cant be applied with a spray! Theres the daily work of preparation and service, and an extra focus on improving safety (and also environmental issues) is a great way to raise everyones horizons. Not everyone is passionate about safety, but when someone shows extra enthusiasm, give them a chance to pursue it - everyone benefits. 

Check the massive collection of Work Food Safety Posters available on this site. 


 Impress the safety inspectors with something extra. You know about the compulory signs and forms. But theres another layer of internal publicity that shows your extra level of commitment. Colourful posters on the wall, regular 10-minute coaching sessions and daily updates in the logbook. Machinery thats easy to use and plenty of modern cleaning equipment (why is it that garbage bins are usually so dirty, and hand-basins so messy?). Most inspectors hear nothing but excuses - theyve heard them all before and are sick of the whining. Your positive approach creates word of mouth no-one can buy!Profitable Hospitality offers management and cost-control systems (Manuals CD-ROMs) for restaurants, cafes, hotels, bars and clubs. The systems are based on the extensive consulting and operating experience of CEO Ken Burgin, and enable busy owners and managers to set up complete operating and cost-control systems in minutes, not months. Profitable Hospitality also runs regular management training workshops in the areas of kitchen profit efficiency, restaurant marketing and functions management. A free monthly e-newsletter keeps you up to date on the latest industry management issues. www.profitablehospitality.com.Written By: By Ken BurginRestaurant News Resourcehttp://www.restaurantnewsresource.com http://www.mychsi.com/index.php/news/read/103/californias-largest-self-insured-group-surpasses-13-billion-in-covered-payroll http://www.mychsi.com/index.php/news/read/103/californias-largest-self-insured-group-surpasses-13-billion-in-covered-payroll California Restaurant Mutual Benefit Corporation Expands to Include Country Clubs as MembersSpurred by new member growth in September, the California Restaurant Mutual Benefit Corporation (CRMBC) has eclipsed the $1.3 billion covered payroll mark. Californias largest self-insured group (SIG) now has a total member locations count of 3,100.And for the first time since CRMBCs inception in 2005, California country clubs are included in the new member total. The adoption of new regulations for SIGs in 2009 allowed California groups to file underwriting plans to include new businesses whose risk exposures were similar to those of the existing group. After a CRMBC proposal to accept qualified country clubs was approved in May, several clubs requested membership. Forty country clubs have now joined CRMBC, including Bermuda Dunes (home of the Bob Hope Golf Classic), Indian Ridge, Mayacama, Old Ranch Country Club, Rancho LaQuinta/Andalusia, Shady Canyon and The Lakes.CRMBC Board Chairman David Mitchell said, Were pleased to welcome some of Californias premier country clubs into the CRMBC family and expect to see many more in the coming year.We are constantly searching for ways to keep costs down, added Buzz Radoff, General Manager and Chief Operating Officer of The Lakes Country Club. That is absolutely essential in todays economic environment. With CRMBC, we are getting good initial pricing with exceptional long-term value. And the best thing is that their programs will help keep our employees safe and support injury recovery. Safety should pay in every way.Since its launch on January 1, 2005, CRMBCs membership has grown tenfold and members have experienced a rate reduction of over 60%. Program manager CHSI has reduced administrative costs for CRMBC by 62% and the program has declared $18 million in returnable funds not needed for claims and expenses. Despite this return of surplus, CRMBC, in compliance with California regulations for self-insured groups, continues to set aside higher reserves for claims expenses than insurance companies.CHSI Senior Executive Vice President Joe Burgess added, The future of workers compensation in the traditional insurance market is very uncertain for California employers right now. Economic conditions are tough enough but all the signs point to rising costs for employers. We are confident that CRMBC will continue to deliver price stability to its members along with a long term net value that will not be beaten. http://www.mychsi.com/index.php/news/read/100/nrsig-launches-24-hour-injury-hotline-on-september-1-to-ensure-employee-safety http://www.mychsi.com/index.php/news/read/100/nrsig-launches-24-hour-injury-hotline-on-september-1-to-ensure-employee-safety LAS VEGAS, Sept 01, 2009 /PRNewswire-USNewswire via COMTEX/ -- -- CHSI Solutions Hotline Provides NRSIG Members Immediate Medical Assessment -- Beginning September 1, 2009, employees of Nevada Restaurant Self-Insured Group members injured on the job will be able to get an immediate injury assessment from a medical professional when they call the CHSI Solutions Hotline.The CHSI Solutions Hotline will be available to NRSIG members and their employees all day, every day. When a workplace accident occurs, a quick and simple phone call to the CHSI Solutions Hotline will connect the caller directly to a registered nurse who can offer an immediate evaluation of the injury, specify what first-aid procedure is appropriate, or advise off-site medical attention.NRSIG Board President Tom Arlt said, I am thrilled that our members and their employees will now be able to use the CHSI Solutions Hotline to expedite the assessment of workplace accidents. When an employee gets hurt, it can be a stressful time for our members and their employees. Having immediate contact with a medical professional will help employees get the medical help they need and free our members staffs to ensure the workplace is secure and safe. The CHSI Solutions Hotline provides NRSIG members with: -- Immediate around-the-clock (24 hours a day, 7 days a week) access to a staff of registered nurses who can make clinical decisions regarding appropriate first aid for injured employees or whether further medical attention is needed -- Multilingual translators to assist non-English speaking employees -- Directory of pre-approved providers for off-site referrals -- Prompt injury reporting to NRSIG member and designated recipients, as well as information downloading into the CHSI claims system CHSI Senior Executive Vice President Joe Burgess explained, CHSI is always looking to provide our SIG clients with programs and procedures that will assist them in making their workplaces safe and secure. We have shown time and again, that a safe workplace is a profitable workplace for employers and employees. The CHSI Hotline Solutions provides just that. With the launch of the CHSI Solutions Hotline, NRSIG members will also see a reduction in both costly medical expenses associated with unnecessary off-site care and lost productivity. A call to the CHSI Solution Hotline takes second-guessing out of the workplace injury equation.In addition to immediate medical response, NRSIG members can call the CHSI Solutions Hotline for advice after a crisis, such as a break-in or robbery, to anonymously report workplace fraud or for any additional customer service needs.The CHSI Solutions Hotline does not submit claims and is not a Third Party Administrator.About NRSIG: The Nevada Restaurant Self-Insured Group is a Workers Comp cooperative for employers who are committed to employee safety. Founded in 1996, NRSIG has 400 members and has returned over $8 million to businesses with its safety pays dividend program.About CHSI: CHSI manages Workers Compensation self-insured group programs in California and Nevada that have returned $22 million to employer members. Founded in 1996 by James Leftwich, CHSI has assembled a team of specialists who have developed unique programs that have been successful in all market conditions. With nearly $2 billion of employer payroll in its self-insured groups, CHSI has developed patent-pending technology for program management to support the companys continued expansion.SOURCE Nevada Restaurant Self-Insured Group www.prnewswire.com Copyright (C) 2009 PR Newswire. All rights reserved -0- KEYWORD: Nevada INDUSTRY KEYWORD: HEA http://www.mychsi.com/index.php/news/read/95/chsi-announces-mychsicom-version-40 http://www.mychsi.com/index.php/news/read/95/chsi-announces-mychsicom-version-40 Our valued Self Insured Group members now have access to the latest version of MyCHSI.com with new and improved features and functionalities. Some of these new features include:Announcements that keep you informed on the latest Workers Compensation information and news. Dedicated place to obtain safety and risk information that will help your company stay informed. Improved tabbed interface that provides easier access to the functions you use most. A Help system that explains the functions available and how to use them. Additional claim information presented in visual graph format. Medical Provider information and directions for all your preferred providers by location. Accessible documents and commonly used forms available for download. The ability to see, at a glance, which functions your access rights allow. CHSI provides a technology solution that is tailored to meet the needs of its Work Comp Groups. http://www.mychsi.com/index.php/news/read/89/crmbc-announces-5th-arrest-for-workers-compensation-fraud http://www.mychsi.com/index.php/news/read/89/crmbc-announces-5th-arrest-for-workers-compensation-fraud A restaurant employee who allegedly collected disability checks while working a second job has been arrested on two counts of insurance fraud by investigators from the California Department of Insurance. The July 13, 2009 arrest is the fifth in the ongoing campaign by the California Restaurant Mutual Benefit Corporation to protect members and their employees from the impact of Workers Compensation fraud on the financial health of their businesses. The case involved an employee who alleged that he sustained an injury to his right shoulder and arm while moving boxes. Under the direction of the treating physician and with employer cooperation, the employee was allowed to continue working at the restaurant with appropriate restrictions to prevent additional injury. When the restaurant was unable to continue the modified work position, the employee began to receive temporary total disability payments while continuing to be treated. The employee subsequently obtained legal counsel. According to the investigation by Intercare, the independent claims administration company employed by CRMBC, it was revealed that the employee was allegedly working for another restaurant while collecting disability benefits. Investigation further indicated the alleged use of a different name and social security number. Additional charges relating to these issues are under consideration.Members of the California Restaurant Mutual Benefit Corporation are able to use a special hotline to report possible fraud. Developed by the program administrator CHSI, the CHSI Solutions Hotline is available 24 hours a day, seven days a week.Chair of the Board of Trustees of CRMBC, David Mitchell, commented:It is critical for our members that we attack fraud aggressively in Workers Compensation. The great majority of work injuries are legitimate and we focus on getting our employees the best care as quickly as possible to help them return to work and support their families. Fraud hurts everybody. It makes it tougher for businesses to survive and it reduces employment.To read this article in Spanish,please click here. http://www.mychsi.com/index.php/news/read/86/nevada-self-insured-chief-comments-on-self-insured-groups http://www.mychsi.com/index.php/news/read/86/nevada-self-insured-chief-comments-on-self-insured-groups Click Here To Read Letter http://www.mychsi.com/index.php/news/read/82/luther-mack-honored-at-harrahs-dinner-for-service-to-mcdonalds http://www.mychsi.com/index.php/news/read/82/luther-mack-honored-at-harrahs-dinner-for-service-to-mcdonalds Luther Mack, former owner of McDonalds restaurants in the Reno-Sparks area, recently was recognized for his 35 years of service to McDonalds, both locally and regionally.Mack sold his 11 restaurants in January 2009, announcing his semi-retirement after nearly four decades of work with the national chain.The award, given for Macks contributions to building the McDonalds brand, was presented during a dinner event at Harrahs Steakhouse including McDonalds West Division and Pacific Sierra Region officials.Luthers had a big influence on McDonalds both locally and statewide, said Tom McKinney, owner of 15 local McDonalds restaurants. Were really sorry to see him go and I personally appreciate the contributions hes made on behalf of all McDonalds in the area. Hes going to be missed and I wish him luck in his future endeavors.Mack recently announced his partnership in opening the first-ever Fuddruckers, home of the Worlds Greatest Hamburgers, at The Legends at Sparks Marina. The restaurant is scheduled to open this summer.Republished from www.rgj.com. http://www.mychsi.com/index.php/news/read/73/ncci-moves-work-comp-outlook-to-guarded http://www.mychsi.com/index.php/news/read/73/ncci-moves-work-comp-outlook-to-guarded ORLANDO The nations historic recession, declining premiums, dwindling surplus and the continuing dominance of medical severity in overall workers compensation costs has pushed the short-term outlook for the nations workers compensation system from optimistic to guarded, top executives of the National Council on Compensation Insurance (NCCI) said here Thursday. This recession is a doozie. Its different. There hasnt been anything like it in a long, long time, NCCI President and CEO Stephen J. Klingel told a crowd of nearly 700 industry representatives at NCCIs 2009 Issues Symposium at the Portofino Bay resort at Universal Orlando. This recession is the 800-pound gorilla, Klingel said. It is the elephant in the room. Klingel and Dennis Mealy, NCCIs chief actuary, released the Boca Raton, Fla.-based rate-makers 2009 State of the Line report to kick off two days of briefings framed around the impacts of the recession and a financial meltdown last fall that speakers warned will bring some form of regulatory change maybe a sea change for the insurance industry and workers compensation. Mealy said the property and casualty industry as a whole has been spared the heavy investment losses suffered by the nations banks, because 70% of its investments are in government bonds. Mealy did not mention the plight of American International Group (AIG), which got a federal bailout within hours of its planned bankruptcy last Sept. 16 following the writing of $440 billion in shaky credit default swaps. Compared to the banks and life insurance companies and others, the record for the property and casualty industry looked downright good, Mealy said. But Mealy also released a series of new financial reports indicating that, in some ways, workers compensation fared worse last year than its counterparts in the industry. Workers compensation carriers said premiums decline in a continuing pattern dating back to 2006, while medical costs continued to increase. Mealy said the trend toward rising medical severity may have been tempered a little last year, but continued to outpace the rise in the Medical Consumer Price Index the measure of medical inflation. Workers compensation premiums dropped 9.8% last year from $37.7 billion to $34 billion. That compares to an overall premium decline of 1.4% in the property and casualty industry. Fueled by continuing losses from weather disasters, homeowners premiums increased by 2.5%. Fire and allied lines premiums jumped by 14.5%. The workers compensation system fared a little better than other lines in what NCCI said is a significant measure of insurer performance net combined ratio. The comparison measures premiums taken in against claims and other expenses paid out. In 2006, workers compensation carriers posted a combined ratio of 93% meaning they spent 93 cents for every $1.00 they collected from employers. In 2007, and, based on preliminary estimates for 2008, they posted a combined ratio of 101% meaning they paid out $1.01 for every $1 they collected. By contrast, the property and casualty industry posted a combined ratio of 92% for 2006 and 95% for last year. But the industry as a whole took a more significant hit last year and posted a combined ratio for all property and casualty insurers of 105%. Overall returns on investments, meanwhile, dropped to 10% well below the 15.1% average return for 1990-2007. The industry also saw increases in both indemnity and medical costs per claim. NCCI reported that average indemnity payments for lost-time claims jumped 5% last year up to $21,200 per claim. The average medical costs of workers claims jumped 6% to $26,000 per claim. That compares to an increase in the nations overall cost for medical services of 3.7%, according to the Medical CPI. But Mealy said the share of medical costs in workers claims for 2008 fell slightly from 59% to 58%, meaning indemnity costs accounted for a slightly larger share of the pie. Brightening the picture was a continuing decline in lost-time claims per 100,000 workers.NCCI reported a 4% drop in claims frequency in the states where it recommends rates for 2008 compared to a 2.6% decline in 200 Based on the systems performance during past recessions, Klingel said claims frequency will continue to drop but could head up eventually as unemployment continues to rise. NCCIs studies show inexperienced employees tend to suffer more injuries and mass layoffs often trigger an upsurge in claims. And Klingel warned the degree of damage to the workers compensation industry will depend on how employers downsize their work forces. When employers cut back on hours to reduce salaries, both premiums and workers exposure to accidents decline. But if employers order pay reductions without reducing hours, premiums go down while the risk remains steady. Following the November elections, NCCI warned that increasing Democratic control of Congress and state legislatures would spawn a flurry of legislative reform bills this year. Klingel said the November elections left the nation with 27 Democratic governors who control both houses in 17 of their legislatures. The other 23 states are run by Republican governors who control both houses in nine of those states. But he said lawmakers backed away from a variety of reform bills during the 2009 legislative season over fears of damaging the economy. He said legislatures moved forward with bills to license and regulate professional employer organizations (PEOs) and give increased compensation to first responders. They also tinkered with caps on attorneys fees most strikingly in Florida, where the Legislature voted in the final hours of the 2009 regular session last Friday to restore a 2003 fee cap struck down by the Florida Supreme Court in Emma Murray v. Mariner Health/AceUSA. About 30% of the state legislation approved this year affected medical costs in workers compensation, Klingel said. Overall, Klingel said the number of workers compensation bills actually passed in 2009 is down from previous years. But he said the push for change in the wake of victory of President Barack Obama and state Democratic lawmakers isnt over. Last November was a watershed moment in our country, Klingel said. They were looking for change almost any change. By Michael Whiteley, Eastern Bureau Chiefmike@workcompcentral.comRepublished with permission fromwww.WorkCompCentral.com. http://www.mychsi.com/index.php/news/read/66/tips-for-preventing-swine-flu http://www.mychsi.com/index.php/news/read/66/tips-for-preventing-swine-flu SWINE FLU (H1N1) VIRUS AWARENESS Rick Faulkner, Vice-President of Risk Control for CHSI Nevada, provides this information for self-insured group members: What is Swine Flu and How Does it Spread? Swine Flu is a Type A influenza virus that spreads between people in the same way that regular seasonal flu spreads person to person. Transmission through sneezing, and coughing, or by touching something that has the flu virus and after touching ones mouth, nose or eyes. It is called Swine Flu because it is a respiratory disease of pigs that enters the human population. What Are the Symptoms of Swine Flu? The symptoms are similar to seasonal flu: fever, lethargy, coughing and poor appetite. Some people with swine flu will also have runny nose, sore throat, nausea, vomiting and diarrhea.Children may have trouble breathing or rapid breathing. They may withdraw or have trouble waking up. They may have a bluish skin color, or a rash with fever. They may not want to be held or to drink fluids. Children can have flu like symptoms that improve, but then return at a higher level, accompanied by fever and cough.Adults may experience: difficulty in breathing or shortness of breath, pain or pressure in the chest or abdomen, sudden dizziness, confusion, and severe or persistent vomiting. What Steps Can I Take to Help From Getting the Swine Flu? The Center for Disease Control and Prevention (CDC) strongly recommends hand washing and hand sanitizing with an alcohol-based hand rub to minimize the spread of germs during an illness outbreak. The CDC also recommends: Covering your nose and month with a tissue when you cough or sneeze. Throwing the tissue in the trash after use. Washing your hands with soap and water, especially after coughing and sneezing. Alcohol-based hand cleaners are also effective. Try to avoid close contact with sick people.Avoid touching your eyes, nose and mouth. What Should I Do if I Become Ill? If you get sick, stay home from work, school or public places and limit contact with other people to keep from infecting them. Contact your primary health care physician and avoid going to an Emergency Room or Urgent Care Center unless you are critically ill. For more information on swine flu (both in English and Spanish), log on to the Center for Disease Control and Prevention website at www.cdc.gov. The Federal Emergency Management Agency (FEMA) website has good information for individuals on protecting themselves against swine flu. Their website is www.ready.gov. Call the CHSI Solutions Hotline at (866) 521-2474 with questions or e-mail Rick at rfaulkner@chsi-nv.com For the Spanish version of this article, please visit here. http://www.mychsi.com/index.php/news/read/53/self-insured-group-announces-chsi-appointment http://www.mychsi.com/index.php/news/read/53/self-insured-group-announces-chsi-appointment Letter to HISIG Owners Dear HISIG Owner,I am writing this letter on behalf of the HISIG Board of Trustees, Garth Smith, Russ Wilson and Chip Kurzeka, with the intent of spreading some good news.Over the past few months the Board of Trustees has worked extremely hard in making a decision to change from our current administrator, Bickmore Risk Services to CHSI (Commitment, Honesty, Service and Innovation). The decision of this change was made with every single owners best interest in mind. Over the past few years, you have worked very hard to minimize losses, contribute monthly to the program, complete reviewed financial statements and help support the grass root marketing effort by spreading word of the HISIG program to your peers.The decision to utilize CHSI as our source of administration has come at a time when the HISIG group is ready to move forward and work in a direction of accelerated growth through increased innovation. The services offered by CHSI are unmatched by any other administrators in the industry. The Board of Trustees and CHSI are committed to the enhancement of the program by working together to move forward in a positive direction.We all look forward to the most recent changes of the elimination of the reviewed financial statement which took place on March 3, 2009. Please note this is no longer a requirement of the HISIG Program. Every active HISIG owner should be commended for their commitment in obtaining this information in the past to keep the group growing. I personally thank you for your commitment and assistance.We will be forwarding contact information for the new CHSI administrators in the near future. Please feel free to call myself with any questions and please continue to spread the word. HISIG is alive and well and growing. As stated in my previous correspondence, It just gets better and better.Thanking you all, Rusty Russell HISIG Marketing Director, Poms and Associates cc: Garth Smith, Board president http://www.mychsi.com/index.php/news/read/64/workers-comp-fraud-rising-task-force-making-unannounced-visits http://www.mychsi.com/index.php/news/read/64/workers-comp-fraud-rising-task-force-making-unannounced-visits When the economic outlook is bleak and business owners are faced with difficult choices that can make a difference between staying in business or going under, the business owner will sometimes make a choice that is against the law, according to the San Bernardino County District Attorneys Workers Compensation Fraud Unit.The theory is that in a difficult economic climate, crime tends to go up as does fraud. People who arent otherwise motivated to be dishonest may follow that path, said Maureen OConnell deputy district attorney with the fraud unit.The unit has seen a marked increase in workers compensation fraud over the past year and has had to double the fraud units staff to handle the volume, she said.A task force will go into businesses unannounced to investigate ifan employer has workers compensation insurance.If they dont have insurance for their employees, the business owner faces a mandatory $10,000 fine and up to a year in jail, OConnell said.One reason for the increase in fraud is the high cost that employers pay for certain job classifications. The more risky the job the higher the insurance premium.To keep their premiums low, OConnell said some employers may illegally classify an employees job task.OConnell said another fraud they are seeing is employers paying employees partially in cash. This is because the insurance premium for workers compensation is based on the amount of total payroll -- less payroll the lower the premium.They may be paying people under the table so they lower the amount of their payroll, which will lower the amount of their premium, OConnell said.She said the other part of the workers compensation fraud on the rise involves employees who normally wouldnt break the law but find it easier to continue receiving workers benefits than going back to work.Sometimes theyre being expected to be let go, sometimes theyre not motivated to go back to work once theyre injured and acclimate to a different way of life not going to work every day, OConnell said.Every employer in the state has to carry workers compensation insurance.For the full article, please visit Advisen http://www.mychsi.com/index.php/news/read/58/siia-praises-new-workers-compensation-self-insurer-rules-in-california http://www.mychsi.com/index.php/news/read/58/siia-praises-new-workers-compensation-self-insurer-rules-in-california SIMPSONVILLE, South Carolina (March 19, 2009) The Self-Insurance Institute of America, Inc. (SIIA) today announced its support for new California regulations governing the operation of group self-insured workers compensation funds (SIGs), which are the product of more than four years of development and debate.The new rules allow groups to determine their evaluation method regarding the financial qualifications of applicants and include provisions for including similar risk from different SIC codes. This regulatory approach will reinforce a high mandated security level for groups but will also enact provisions that are expected to encourage growth in the programs.California requires an 80% actuarial confidence level for self-insured groups, a reserve threshold much greater than is required for traditional insurance companies. Stand alone self-insured companies have no mandated confidence level. Self-insured groups post security deposits with the state in the same manner as individual self-insured companies but are required to have a level of excess insurance coverage for catastrophic claims that is not required of stand alone self-insureds.We are pleased that regulators in the countrys largest workers compensation marketplace recognize the important role played by SIGs, particularly with regard to providing an affordable risk financing solution for small and mid-sized employers, said Chris Mason, chairman of the SIIA Workers Compensation Committee.Mr. Mason noted that the first California SIG began in 2002, but the real emergence of groups occurred in 2004 and 2005 as elevated rates and an absence of insurers exacted a toll on employers.There are 26 self-insured groups operating in the state with $5.2 billion in covered payroll and $180 million in annual contributions. Several groups have recently elected to wind down operations in response to a prolonged soft insurance market and tight credit conditions. The largest California SIG represents $1.1 billion in covered payroll.SIIA is national trade association that represents companies involved in the self-insurance/alternative risk transfer industry. Additional information about the association can be accessed on-line at www.siia.org, or by calling 800/851-7789. http://www.mychsi.com/index.php/news/read/60/what-to-know-if-your-insurance-company-is-in-distress http://www.mychsi.com/index.php/news/read/60/what-to-know-if-your-insurance-company-is-in-distress The decline in the financial markets has impacted the countrys insurance underwriters. As some of these insurance companies face liquidity challenges or even potential insolvency, it is imperative that senior management and board members evaluate the viability of the carriers that participate in their insurance programs. Below are some practical considerations for officers and directors as well as a summary of relevant insurance company regulation.Practical ConsiderationsMonitor your insurance programs and review the financial viability of your insurers. If a carrier is at risk of being downgraded, consider the types and levels of insurance coverage maintained, retentions and exclusions, potential gaps in coverage, the cost of coverage, alternative risk transfer solutions, and the comparison of your program with others in your industry.Ask your insurance brokers to periodically evaluate ratings data and other financial information (including media reports, press releases, public filings and analyst reports) concerning the companys insurers to thoroughly evaluate their creditworthiness.If one or more of your insurers are at serious risk of insolvency, consider obtaining a secondary policy to protect the company and its officers and directors if necessary.If a policy is up for renewal, consider a provision allowing for the right to terminate and a pro rata premium refund if the rating of the insurer drops below a fixed benchmark.Summary of Relevant Insurance Company Regulation ApplicabilityThe financial health of an insurance company is regulated by the insurance department of its state of domicile. Generally, an insurance company is required to notify its state insurance department if it is impaired, meaning that its assets are less than the required minimum.State insurance laws may provide for increasing levels of supervision and regulation dependent upon the financial decline of an insurer.Insurance companies may not be debtors under the federal bankruptcy laws, although non-insurer affiliates of an insurance company may be debtors under the federal bankruptcy laws.Insolvency ProcessBecause they cannot file for protection under the federal bankruptcy code, insurers are placed in receivership (sometimes referred to as conservation). The insurer receivership process is customarily a lengthy and inefficient process. During this process policyholder benefits may be delayed or deferred for substantial periods of time.Once an insurance company is in receivership, the state insurance department must decide whether rehabilitation or liquidation is more appropriate. With either rehabilitation or liquidation, a state insurance department retains broad discretion over an insurer and is focused on protecting the insurers policyholders.Unlike bankruptcy, receivership proceedings are typically not transparent.If a state insurance department determines that an insurer should be liquidated, distributions are subject to priorities similar to those that exist under the federal bankruptcy laws. However, the major distinction between an insurer liquidation and a bankruptcy proceeding is that policyholders always have a priority over general creditors in an insurer liquidation.If an insurers assets are not sufficient to satisfy its policyholders claims, state guarantee associations or funds will, in many instances, ensure payment of all, or a portion, of such policyholders claims.Guarantee AssociationsGuarantee associations or funds have been established in every state to protect holders of life, health, annuity, property or casualty insurance policies, to varying degrees, if an insurer becomes insolvent. Guarantee associations will provide coverage for an insolvent insurers policyholders, subject to certain limitations, either by taking on the policies directly or by transferring the policies to another insurer that is financially stable.To read the full article please visit, Advisen Front Page News. http://www.mychsi.com/index.php/news/read/61/good-luck-following-the-money http://www.mychsi.com/index.php/news/read/61/good-luck-following-the-money WE return this week to the subject of the American International Group, the giant insurer that has received $170 billion in taxpayer guarantees, because the clamor over its rescue continues to grow. Of concern to those on both Capitol Hill and Main Street is the secrecy surrounding the $50 billion funneled to A.I.G.s counterparties since it nearly collapsed last fall.Now that we live in bailout nation, why does the A.I.G. rescue rub so many the wrong way? Here is a hypothesis: Even as investors, employees, communities and taxpayers have been battered by the crippled financial system, A.I.G.s counterparties were saved from losses on deals they struck with the insurer.Add the fact that the government has resisted revealing these companies identities or how much federal money they received, and its easy to see why resentment boils. As a result of the A.I.G. rescue, taxpayers own almost 80 percent of the company. (Friday evening, as this column was going to press, rumors were swirling that A.I.G. might be releasing a list of all of its counterparties.)Representative Carolyn B. Maloney, Democrat of New York, said she had twice asked for a full accounting from Ben S. Bernanke, the chairman of the Federal Reserve, which arranged the A.I.G. rescue. She has not received it.They have told others it is proprietary information, Ms. Maloney said in an interview. But we are the proprietors now. Taxpayers own the store, and we should be able to see the books.A.I.G., at one time the worlds largest insurer, sold contracts to these sophisticated counterparties that theoretically protected them from losing money if the debt they had purchased defaulted. Known as credit default swaps, the contracts offer the same kind of protection a homeowner receives from an insurance policy against fires and other unforeseen calamities.The arrangements behind the deals produced fees for A.I.G. while the firms buying the contracts got peace of mind. No one thought A.I.G. might have to pay hundreds of billions of dollars in claims. Until, that is, A.I.G. came under financial pressure last year.When the government stepped in to rescue A.I.G., its main and very reasonable concern was that a collapse of the insurer would drag down with it other big financial companies that were its customers. So the government shoveled taxpayers money into A.I.G., beginning with an $85 billion loan last September.Then the rescuer went mum.Officials at the Fed, who continue to oversee the A.I.G. rescue, have taken the position that the terms of the insurers contracts are confidential and that it would be wrong for the government to break those promises by naming recipients of taxpayer money. Another concern may have been that disclosures of A.I.G.s counterparties might make investors and depositors uneasy about the well-being of the firms getting the money.According to people briefed on the situation who were granted anonymity because they were not authorized to talk about it, the counterparties that taxpayers have bailed out include Goldman Sachs, Merrill Lynch and two French banks, Calyon and Societe Generale. Along with other unidentified entities, the counterparties have received 30 percent of the $170 billion allocated to A.I.G. (Goldman has said that it had insulated itself from any financial damage that might have resulted from an A.I.G. collapse.)Even A.I.G.s own independent directors havent been told which of the counterparties were paid, according to a person with direct knowledge of the matter who requested anonymity because of confidentiality agreements.SUCH secrecy raised hackles because the insurance claims were paid off in full, even though widespread defaults on the underlying debt have not occurred. Why, many people wonder, did the Fed make A.I.G.s counterparties whole on losses that have not happened yet? Why didnt it force these financial companies to close out the contracts at a discount, making them take what is known on Wall Street as a haircut?Robert Arvanitis, chief executive of Risk Finance Advisors in Westport, Conn., and an expert in insurance, speculated that the United States was afraid that A.I.G.s foreign bank counterparties would suffer large hits to their capital cushions, the amount they must set aside in case of losses.If somebody takes away the A.I.G. guarantee, all of a sudden the banks capital ratios look bad, he said. It might have stretched some of these banks.Still, Mr. Arvanitis said, it is not clear that the government had to pay out 100 percent of the contracts value to all the counterparties. Healthier institutions could have been persuaded to take a haircut, he said. That is what tough negotiators do, he added.The government installed Edward M. Liddy as chief executive of A.I.G. when the company was bailed out. A former chief executive of Allstate, Mr. Liddy was also a director at Goldman Sachs before he joined A.I.G.And in January, the Fed appointed three trustees to oversee the insurer. Their job is to maximize the companys ability to repay amounts owed to the government and to ensure that A.I.G. is managed in a manner that will not disrupt financial market conditions, according to the Fed.The trustees are Jill M. Considine, former chairman of the Depository Trust Company and a former director of the Federal Reserve Bank of New York; Chester B. Feldberg, a former New York Fed official who was chairman of Barclays Americas from 2000 to 2008; and Douglas L. Foshee, chief executive of the El Paso Corporation and chairman of the Houston branch of the Federal Reserve Bank of Dallas.The trustees have already rankled a big A.I.G. shareholder. The American Federation of State, County and Municipal Employees pension plan, which owns 18,000 shares of A.I.G. common stock, had put forward a shareholder proposal on executive pay that it hoped would be put to a vote at the companys annual meeting in May.The proposal asked the company to adopt a policy requiring senior executives at A.I.G. to retain a significant percentage of the shares they received as compensation until two years after they left the company. Such a policy would help reward performance based on long-term value creation for shareholders, the pension plan said.But Richard Ferlauto, the director of corporate governance and pension investment at Afscme, said A.I.G. trustees have indicated they oppose the proposal. But Kevin F. Barnard, a lawyer at Arnold Porter who represents the trustees, said they were still considering the proposal. To my knowledge, they are batting ideas back and forth but have not made fixed decisions, he said.To read the full article please visit, Advisen Front Page News http://www.mychsi.com/index.php/news/read/54/siia-members-express-concerns-about-health-reform http://www.mychsi.com/index.php/news/read/54/siia-members-express-concerns-about-health-reform During Their Annual Walk on Capitol HillWASHINGTON, DC (March 12, 2009) Members of the Self-Insurance Institute of America, Inc. (SIIA) from throughout the United States held more than 300 meetings in Congressional offices today to express their concerns about the apparent direction of health care reform efforts by the federal government.Our mission is to rally support for the employer-sponsored self-insured health care system, said Michael Ferguson, chief operating officer of SIIA. While prevalent health reform proposals identify the existing employer-based system as an asset, certain details of the proposals cause concern. We intend to continue to work closely with Congress to help make sure that any health care reform legislation doesnt have adverse unintended consequences for the 75 million people covered by self-insured employee benefit plans.Two specific concerns of SIIA focus on elements of several proposals including those of the Obama Administration and both houses of Congress. Those are proposed mandates for employee coverage that would include taxation sanctions against employers who do not provide coverage, and a national health insurance exchange that would serve as an option for people who opt out of their employer plans or are not offered plans.The mandated coverage, termed pay or play could ultimately erode the employer system by requiring standardized government-determined plans that would eliminate the present flexibility of self-insured plans, and perhaps force employers to terminate their plans, Ferguson said.SIIAs concern about an optional health insurance exchange centers on the proposal to include a government program along with private insurance plans. This would ultimately lead to the elimination of the employer-based system as the government plan would be subsidized by taxpayer dollars and represent unfair competition versus health plans of private insurers, Ferguson said.SIIA is a national trade association comprised of companies involved in the self-insurance/alternative risk transfer industry. Information is available at www.siia.org.For more information on this topic, visit, http://SIIA.org http://www.mychsi.com/index.php/news/read/52/large-business-entrepreneur-of-the-year-paul-sonner http://www.mychsi.com/index.php/news/read/52/large-business-entrepreneur-of-the-year-paul-sonner Its not often that legislative directives affect a neighborhood hangout where locals down beer, partake in wings and watch the days sporting events on giant televisions. But in 2007, politics and sports bars collided, signaling possible doom for smoking sports fans throughout the valley. The 2007 legislative session passed a law banning cigarette smoking in local restaurants. Many of our customers smoke, said Paul Sonner, president of the local chain of Bullys sports bars. They felt ostracized having to go to a casino (which many didnt want) or being forced to stand outside. So it was up to me to be creative and come up with a solution. First it was giant heaters and tables placed outside of Bullys locations, so that even in winter months, at least smokers could enjoy the heat of something other than the smoldering ends of their cigarettes. But the solution seemed bigger, he thought. The stupid smoking ban was part of the deal that forced us to really get creative, Sonner said. Instead of sitting and crying about it like other bars, we decided to tackle the issue head on. And with that, four Smokin Bullys locations were created, additional spaces within walking distance of existing Bullys outlets where patrons literally could transport their food from the restaurant and enjoy their habits in a legal loophole. But the increased traffic generated by visits to Smokin Bullys locations wasnt the only bright spot for Sonner during 2008. Indeed, he acknowledges the industry has been hit heavily by the economic downturn, but the added pressure on the chain of 13 outlets has forced him to further refine the business model. Well be a much stronger company when the economy comes back, he said, noting that the lessons hes learning now will only serve to augment his bottom line. Were running a much tighter ship now. We learned we were pretty overweight, and now we know how many employees we really need. Despite a rough year, Sonner managed to open three additional locations in 2008 and still has his sights set on possible expansion when it makes sense. Ive scouted three or four new Bullys locations, he said, tipping his hand that the North Valleys area is a no brainer for future growth. Other avenues Sonner is exploring: Bullys operated the concession stand at the Sparks softball complex last year and plans to do the same this year, and Sonner adds that hes placing a bid to take over concessions at Lawlor Events Center. Sales rules all in this business, so we have to keep redefining ourselves in this economy to stay on top, he said. Realistically, by the end of this year, the landscape will be 20 percent less for bars and restaurants. Others have to fall off for others to survive -- its Darwinism in sports bars, I guess. Sonner is optimistic that his chain will be one of the ones to ultimately survive -- and even thrive. source: rgj.com http://www.mychsi.com/index.php/news/read/55/california-enrolls-new-regulations-for-self-insured-groups http://www.mychsi.com/index.php/news/read/55/california-enrolls-new-regulations-for-self-insured-groups SACRAMENTO, CA, March 9, 2009-- Workers Compensation self-insured groups in California have new regulations governing their operations after four years of development and debate. The Secretary of State has enrolled the revised rules that retain a high mandated security level for groups but which also enact provisions that are expected to encourage growth in the programs.California requires an 80% actuarial confidence level for self-insured groups, a reserve threshold much greater than is required for insurance companies. Stand alone self-insured companies have no mandated confidence level. Self-insured groups post security deposits with the state in the same manner as individual self-insured companies but are required to have a level of excess insurance coverage for catastrophic claims that is not required of stand alone self-insureds.The new rules allow groups to determine their evaluation method regarding the financial qualifications of applicants and include provisions for including similar risk from different SIC codes. Self-insured groups compete with insurance companies in the marketplaceThe first Workers Compensation self-insured group in California began in 2002 but the real emergence of groups occurred in 2004 and 2005 as elevated rates and an absence of insurers exacted a toll on employers.There are 26 self-insured groups operating in the state with $5.2 billion in covered payroll and $180 million in annual contributions. Several groups have recently elected to wind down operations in response to a prolonged soft insurance market and tight credit conditions. The largest self-insured group in the state is the California Restaurant Mutual Benefit Corporation with $1.1 billion in covered payroll and 3700 locations. http://www.mychsi.com/index.php/news/read/62/where-taxpayers-dollars-go-to-die http://www.mychsi.com/index.php/news/read/62/where-taxpayers-dollars-go-to-die DERIVATIVES are dangerous.That simple sentence, written by Warren Buffett, begins an enlightening discussion in Berkshire Hathaways most recent annual report. Mr. Buffetts views on derivatives, gleaned from his own unhappy encounters with them, should be required reading for all United States taxpayers.Why? Because we own almost 80 percent of the American International Group, the giant insurer whose collapse was a direct result of derivatives it sold during the late, great credit boom.A.I.G. nearly barreled off the cliff last September, when it couldnt meet its obligations to customers who had bought a version of derivatives called credit default swaps. Such swaps are like insurance policies; bondholders buy them to protect themselves from default on various forms of debt.When A.I.G. couldnt meet the wave of obligations it owed on the swaps last fall as Wall Street went into a tailspin, the Federal Reserve stepped in with an $85 billion loan to keep the hobbled insurer from going bankrupt; over all, the government has pledged a total of $160 billion to A.I.G. to help it meet its obligations and restructure operations.So is A.I.G. the taxpayer gift that keeps on taking? Sure looks that way. And while no one can say with certainty whether more money will be needed, the sheer volume of derivatives engineered by a small London unit of A.I.G. suggests that taxpayers havent seen the bottom of this money pit.Some $440 billion in credit default swaps sat on the companys books before it collapsed. Its biggest customers, European banks and United States investment banks, bought the swaps to insure against defaults on a variety of debt holdings, including pools of mortgages and corporate loans.Because of the way A.I.G. wrote its swaps, and because the company had a double-A credit rating at the time, it did not have to put up collateral to assure its customers that it would be able to pay on the insurance if necessary. Collateral would be required only if A.I.G.s credit rating were cut or if the debt underlying the swaps declined.Both of these unthinkable events occurred in 2008. Suddenly, A.I.G. had to cough up collateral it didnt have.SO, you see, the rescue of A.I.G. also involved a bailout of its many customers, none of whom the insurer or the government is willing to identify.Nevertheless, Edward M. Liddy, the chief executive of A.I.G., explained to investors last week that the vast majority of taxpayer funds have passed through A.I.G. to other financial institutions as the company unwound deals with its customers.On Wall Street, those customers are known as counterparties, and Mr. Liddy wouldnt provide details on who the counterparties were or how much they received. But a person briefed on the deals said A.I.G.s former customers include Goldman Sachs, Merrill Lynch and two large French banks, Societe Generale and Calyon.All the banks declined to comment.To read the full article please visit, Advisen Front Page News http://www.mychsi.com/index.php/news/read/51/chsi-announces-new-technology-to-combat-high-claims-costs http://www.mychsi.com/index.php/news/read/51/chsi-announces-new-technology-to-combat-high-claims-costs Las Vegas, NV, March 4, 2009 -- CHSI has launched a newly developed real-time, visual-based claims Information control system; the META-Vision (patent-pending), which stands for multiple event tracking aeonic. Using the power of the Connections Management System, the META-Vision Center provides a real-time feed of information through the internet from clients, medical providers and claims adjuster to a command and control center that is staff with highly knowledgeable personnel. The incoming information constantly alerts and updates the CHSI representatives to momentary changes and allows for quick and proper responses to incoming information. One of the elements that make this technology unique is the use of a visual platform that constantly gives visual-cues and allows the user to see a whole host of activities happening concurrently over a wide geographic area. stated Lee Mashore, VP of Information Technologies for CHSI. Mashore went on to say, Also, most management systems rely on information that is sometimes days, weeks, or even months old. By the time the relevant parties have all the information necessary to make a decision, the horse is usually out of the barn, and the cost to the employer is irreversible. This technology allows for all the meaningful parties to communicate and collaborate in a timely fashion in order to take the right action at the right time. The results are mitigation of claims costs traditionally incurred using today methodologies. Powered by the latest web based technologies, the META-Vision displays claims information and provides visual alerts as to the status of each claim. Using touch screen or mouse-based technology, the system is easily manipulated and provides a breadth of information at the touch of a finger. The User is alerted to incoming information through a variety of visual-cues that are customizable. Data integration with Connections, or other databases, provides the most important claim related information available on a real-time basis. CHSI is currently in talks to repurpose this visual-based information platform for use in the management of restaurant chains and Toyota dealerships.This article will be featured in the CHSI Quarterly Magazine, which will be available in April, 2009. http://www.mychsi.com/index.php/news/read/50/why-you-should-be-looking-at-captive-insurance http://www.mychsi.com/index.php/news/read/50/why-you-should-be-looking-at-captive-insurance By Ted O. Hall, JD CPA MBAMost of us have heard about the AIG crisis and the federal bailout of this former giant in the industry. But did you know that AIG is not the only household name insurance company with their hand out for federal assistance? The Associated Press recently reported on the latest scheme for insurance companies to apply for and receive bail out money from the Troubled Asset Relief Program (TARP) - designed to shore up banks and other financial institutions. How do insurance companies access TARP bailout funds? Easy, they simply buy thrifts, and then apply for bailout funds via their thrift subsidiary. Hartford, Lincoln National, Genworth Financial Inc. and Aegon NV, a Dutch company that owns U.S. insurer Transamerica were among four insurance companies that applied for bail out funds last November alone.The reason that these companies are seeking bail outs is that they are facing ever increasing underwriting and investment losses that are adversely affecting their financial statements. The ability of insurance companies to write premiums is heavily dependent on the maintenance of their equity base. Under the insurance statutes and regulations, premiums are leveraged by equity. Nearly all established insurance companies are facing financial strain on their equity. Shrinking equity reduces their ability to leverage the amount of premium they write. The ever rising loss of the equity base bodes ill for the future availability and price of insurance premiums. The two common solutions for companies with inadequate equity are to cease writing riskier business and to increase the price for acceptable risk.Thats where captives come in. Most Fortune 500 companies have used some form of captive insurance for many decades. Now, small business owners everywhere are waking up to potential benefits of using captives for their own insurance needs as well. The greatest impetus for the formation of captives comes when traditional market premiums are increasing or certain lines of insurance are simply not available at any price. In the insurance business we call this a hard market, and most knowledgeable prognosticators are telling us that the hard market is just around the corner probably here by the end of this year.If you have a suspicion that you might be hit by this hard market (and most policyholders will be hit) this is the time to start developing your captive business plan. You can look to join established captives that have a operating history, or you look to form your own captive. From start to finish you should count on 6 to 9 months to build your business plan, submit your application and receive your Certificate of Authority from the insurance regulator of your chosen captive domicile. If you start now you should complete the process just in time for the arrival of the hard market.Where to begin? Start with your Broker. Even through they may not be experts in Captives, they probably know one in the industry. Alternatively, CHSI Captive Insurance Mangers are Nationally recognized leaders in the field and are able to help you through the entire process of conceptualizing, planning, applying and managing your captive entity structure.This article will be featured in the CHSI Quarterly Magazine, which will be available in April, 2009. http://www.mychsi.com/index.php/news/read/48/nevada-bill-would-cost-employers-one-years-salary-for-retaliatory-firing http://www.mychsi.com/index.php/news/read/48/nevada-bill-would-cost-employers-one-years-salary-for-retaliatory-firing Source: Work Comp CentralA bill to be heard by a committee of the Nevada state Assembly on Friday would increase death benefits and impose stiff penalties against employers who terminate employees in retaliation for filing claims.Other pro-labor bills are also likely to soon be introduced in the Senate, where Democrats regained control in the 2008 election. Although no public record yet exists, the Las Vegas Sun reported Monday that Senate Labor and Commerce Committee Chairwoman Maggie Carlton is promising a robust agenda on workplace safety and workers compensation.A Senate staffer confirmed Monday that Carlton has requested that two bills be drafted to address the states workers compensation system.For the moment, Assembly Bill 178 by Jerry Claborn, D-Las Vegas, is the Legislatures main vehicle to sweeten the system for injured workers. AB 178 would require employers to pay injured workers one years salary or $10,000, whichever is greater, for firing an employee in retaliation for filing a workers compensation claim. The bill would also prohibit insurers from issuing any policy that covers damages for retaliatory acts against claimants.Other provisions in AB 178 would:Impose a $1,500 fine against insurers for failing to schedule a permanent disability evaluation or failing to make a determination regarding a claim within 30 days after receiving a written request.Require employers offering to return injured workers to the jobs they held before the injury to state in writing the gross wages, the number of hours to be worked, the time each work shift will begin and end and an explanation of benefits.Mandate the use of the 5th edition of the American Medical Association guides for rating impairments, instead of the controversial 6th edition of the guides.Adjust death benefits annually, with benefits to be paid out of a special fund. Insurers and employers would be required to contribute $150,000 in benefits to the fund for any worker with dependents who is killed on the job.Require insurers to list specifically each body part affected when accepting or denying a claim and notify claimants of their right to a hearing.The Assembly Commerce and Labor Committee is scheduled to hear AB 178 on Friday, after adjournment of the Assembly floor session. During that meeting, the committee will also consider AB 173, a bill by April Mastroluca, D-Henderson, that would add arson investigators to the public safety officials who are entitled to a presumption of causation for various ailments.While Claborns bill works itself through the Assembly, Sen. Carlton is planning similar legislation on the Senate side, according to the Sun newspaper. Democrats gained control of the Senate in the last election by adding two seats from the Las Vegas area. They also gained a two-thirds super majority in the state Assembly in the past election.Any bills passed by Democratic lawmakers, however, will have to get past Republican Gov. Jim Gibbons.Labor lobbyist Danny Thompson told the Sun that over the years Republican lawmakers have whittled away at workers rights to the point that injured workers have to climb Mount Everest to get benefits, and then they pour gas on it and light it on fire.Gaming industry lobbyist Bob Ostrovsky told the Sun that employers are willing to work with lawmakers to pass legislation that would provide claimants better protection against retaliation, but the economic environment is too dismal to pass bills that would add new costs.At least one injured worker advocate told the newspaper that Democrats understand that they will have to temper their attempts to increase benefits in light of the current economic situation.Youd have to be deaf to not understand that anything thats going to charge a significant cost to management is going to be opposed, because of the economic times, said Ray Bader, a Reno workers compensation attorney who helped draft AB 178.For more information on AB 178, go here:http://www.leg.state.nv.us/75th2009/Reports/History.cfm?ID http://www.mychsi.com/index.php/news/read/37/self-insured-group-distributes-4-million-dividend http://www.mychsi.com/index.php/news/read/37/self-insured-group-distributes-4-million-dividend Sacramento, CA, February 9, 2009 -- Californias largest self-insured group for Workers Compensation, the California Restaurant Mutual Benefit Corporation, announced today that the group has distributed a dividend of just under $4 million. The group, managed by CHSI of California, has now distributed over $12 million to members since the program was launched on January 1, 2005. CRMBC membership includes over 500 restaurant companies with 3700 locations across the state.Chairman of the Board of Trustees, David Mitchell of Sacramento, said the group is very optimistic about its future despite the challenging economy.CHSI has developed leading edge technology and tools to help members reduce work injury claims and expenses. We have to pay very close attention to our costs by law we are required to have much higher claims reserves than insurance companies. We have had success in fighting fraud, working with our claims manager, Intercare. We are excited that we can help our small business members reinvest in their businesses in these tough times.Self-insured groups in Workers Compensation are private sector cooperatives serving small and mid-sized businesses in California. The programs are designed to return value to employers for commitment to safety and work injury management.CRMBC covers $1.1 billion of payroll in the California restaurant industry. http://www.mychsi.com/index.php/news/read/49/advisen-forecasts-prolonged-hard-market http://www.mychsi.com/index.php/news/read/49/advisen-forecasts-prolonged-hard-market Source: Advisen Advisen forecasts end of soft market in commercial insurance premiums followed by a gradual and prolonged hard market. Price increases to vary by insurance product. Advisen Ltd., the leading provider of information, analytics, and technology to the global commercial insurance industry, today released a report predicting that the commercial insurance premium market cycle is close to its bottom and that general commercial insurance prices will begin increasing by the fourth quarter of 2009 or the first quarter of 2010. Advisen research is based on its own industry-leading database of premium history and its database of the financial performance of 13 million companies. In years past, insurance companies recouped underwriting losses with investment income, but in 2008 the combination of underwriting losses and material investment losses means a five-year soft market is coming to an end, said David K. Bradford, Advisen Executive Vice President and Chief Knowledge Officer. The global recession may delay the return of hard market conditions by keeping demand for insurance down, but once the hard market sets in, it is likely to last longer than was the case in recent cycles. In previous hard markets, price increases attracted new capital investment to the market, and the increase in insurance supply led to short hard market cycles, continued Bradford. In the current economic environment, where credit markets are essentially frozen, capital to create new insurance and reinsurance capacity may be in short supply. With capital scarce, the coming hard market could be longer in duration than those of the past several decades. The full report is available at: http://corner.advisen.com/reports_topical_hard_market_coming_home.html The report covers the impact on pricing of many factors including the AIG crisis, the global economic crisis, and how buyers of commercial insurance are reacting to the market changes. http://www.mychsi.com/index.php/news/read/47/employees-with-comp-claims-have-worse-outcomes-after-rotator-cuff-surgery http://www.mychsi.com/index.php/news/read/47/employees-with-comp-claims-have-worse-outcomes-after-rotator-cuff-surgery Source: Risk and Insurance Online The study, by researchers from The Warren Alpert Medical School of Brown University in Providence, R.I., examined 125 patients -- including 39 with workers comp claims -- who underwent unilateral primary repair of a chronic rotator cuff tear. The individuals were studied and evaluated one year after the surgery, prior to the settlement of any claims. According to the researchers, outcomes were assessed using different methods, including a simple shoulder test; the Disabilities of the Arm, Shoulder and Hand index; and three visual analog scales (shoulder pain, shoulder function, and quality of life). * Related Coverage Washington: Workers compensation premiums increasing by 3 percent, officials say (01/08/09) * California: WC premiums fall in 2008, but cost per claim increases (01/22/09) * Researchers analyze significant shift in medical share of total benefits (01/19/09) * Maryland: Decline in claims frequency results in reduction in rates (01/19/09) * Immigrants have lower rate of non-fatal injuries than U.S. workers (01/29/09) Researchers said that previous studies have demonstrated varying correlations between workers comp status and the outcome of rotator cuff repair. However, according to the findings, none of those studies had accounted for potentially confounding factors with multivariable analysis. The study, which was published in The Journal of Bone and Joint Surgery, found that individuals in the workers comp group were significantly younger, had greater work demands, and had lower marital rates, education levels, and preoperative expectations for the outcome of treatment as compared with those in the non-workers comp group. One year postoperatively, researchers said those patients reported worse performance on the simple shoulder test and had worse improvement on the Disabilities of the Arm, Shoulder and Hand index. According to the study, multivariable analysis controlling for age, sex, comorbidities, smoking, marital status, education, duration of symptoms, work demands, expectations, and tear size confirmed that workers comp status was an independent predictor of worse Disabilities of the Arm, Shoulder and Hand index scores. The results of the present study support our hypothesis that patients with workers compensation claims report worse outcomes, even after controlling for confounding factors, the researchers said. Researchers said that although they dont yet know how a workers comp claim affects the long-term outcome of rotator cuff repair, the findings have important societal implications. Shoulder disorders are very common and injuries are bound to occur at work, they said. We strongly believe that the present study should not discourage clinicians from recommending indicated rotator cuff repair to workers compensation patients. Rather, it should provide a framework for outcome evaluation for both patients and surgeons. In the future, our goal is to determine how to optimize the outcome of rotator cuff repair for all patients, including those with workers compensation claims. November 17, 2008 Copyright 2008 LRP Publications http://www.mychsi.com/index.php/news/read/34/forbes-magazine-features-chsi-as-one-of-the-most-dependable-insurance-professionals-in-the-west-for-2008 http://www.mychsi.com/index.php/news/read/34/forbes-magazine-features-chsi-as-one-of-the-most-dependable-insurance-professionals-in-the-west-for-2008 Las Vegas, Nevada, September 22, 2008 CHSI, an industry-leading self-insured group administrator and integrator of workers compensation solutions that drive costs down for employers, received the distinction of being one of The Ten Most Dependable Insurance Professionals of The Western United States for 2008, as published in Forbes Magazine by independent third-party researcher, Goldline Research.The rigorous research process included individual client interviews and quantitative analysis of key company data to establish exceptional levels of client and technical service. In earning the Most Dependable designation, CHSI has demonstrated characteristics essential for continued success and leadership within their industry; most notable of these being its commitment to putting clients first.Our company is honored to receive such recognition, stated CHSIs Chief Executive Officer Jim Leftwich. As a client-centric organization, CHSI works hard to win the respect and meet the needs of our 1400+ customers. We measure our success based on the opportunity our clients extend to us year after year to continue serving them.About CHSIFounded in 1996, CHSI is a workers compensation and financial risk management firm providing service to multiple industries. CHSI gives small and medium-sized employers a competitive edge not otherwise available to them by creating cost effective workers compensation solutions generally only affordable to Fortune 500 companies. With over 1400 clients today, representing over $1.5 billion in payroll, CHSI is making that vision a reality for its client base. Last year CHSI managed over $148 million in assets and gave back over $9 million in dividends to its clients. The CHSI senior management team has extensive multi-state experience, and in this capacity, has designed and operated workers compensation and insurance captive solutions for companies ranging from franchises to Fortune 500s. http://www.mychsi.com/index.php/news/read/35/democrats-in-senate-seek-to-raise-osha-penalties-on-employers http://www.mychsi.com/index.php/news/read/35/democrats-in-senate-seek-to-raise-osha-penalties-on-employers People can get more prison time for mail fraud than for violating safety standards that can kill workers, Democratic senators said this week as they called for tougher punishment for workplace fatalities and stricter enforcement from the Occupational Safety and Health Administration.The maximum OSHA civil penalty for a safety violation is $70,000 and the maximum prison sentence for a willful violation of a safety standard that leads to a workers death is six months, said Sen. Edward Kennedy, D-Mass. In contrast, mail fraud can draw a top sentence of 30 years. If you improperly import an exotic bird, you can go to jail for two years. If you deal in counterfeit money, youre looking at 20 years, said Kennedy, chairman of the Senate Health, Education, Labor and Pensions Committee. But if you gamble with the lives of your employees and one of them is killed, you risk only six months in jail.There were 5,840 fatal work injuries in the U.S. in 2006 -- a fatality rate of 4.0 per 100,000 employed workers -- the most recent numbers available from the Bureau of Labor Statistics. OSHA said that the fatality rate was the lowest since the BLS instituted its Census of Fatal Occupational Injuries in 1992.Election-year political theater can not mask the truth that under this administration, workplace illness, injury and fatality rates are the lowest in OSHAs history, said Edwin G. Foulke Jr., assistant secretary of labor for OSHA. OSHA conducted 39,324 total workplace inspections between Oct. 1, 2006 and Sept. 30, 2007 and found 88,846 violations of OSHAs standards and regulations. More than 100 inspections ended with proposed penalties of over $100,000, agency officials said.Kennedy and Sen. Patty Murray, D-Wash., also are calling on the Government Accountability Office, Congresss watchdog agency, to check to see whether companies are reporting to OSHA all workplace fatalities.Senators should be looking at preventing workplace injuries, instead of trying to come up with stronger punishments after an accident has happened, said Sen. Mike Enzi, R-Wyoming. No penalty can make up for the loss of a loved one, Enzi said. Instead of talking just about punishments after injuries or fatalities occur, I wish we were holding a hearing on preventing injuries from occurring in the first place. http://www.mychsi.com/index.php/news/read/32/chsi-executive-lauded-as-person-of-the-year http://www.mychsi.com/index.php/news/read/32/chsi-executive-lauded-as-person-of-the-year Las Vegas, NV, December 10, 2007 Ted Hall, President of CHSI Captive Insurance Managers, is the distinguished recipient of the 2007 Alice A. Molasky-Arman Person of the Year award from the Nevada Captive Insurance Association (NCIA). The award, created by the NCIA for distinguished service to the industry in Nevada, was presented by Insurance Commissioner Molasky-Arman at the third-annual NCIA conference held November 16 at Caesars Palace, Las Vegas.Mr. Hall has played a key role in the Nevada Captive Insurance Association, the organization that supports the growth of captive industry in the state. Under Commissioner Molasky-Armans leadership, Nevada has become one of the nations fastest growing homes for captive insurance companies. Captives are alternative risk financing operations that are organized to control insurance costs that hurt businesses and professionals and drive up consumer costs. Mr. Hall is a nationally recognized author and lecturer on captive insurance and is the co-author of the industry textbook Captive Insurance Manual and a contributor to Practical Risk Management.As an expert in specialized areas of alternative risk management and insurance company operations, Mr. Hall heads CHSI Captive Insurance Managers, LLC. As a former tax partner with the accounting firm of Ernst Young, Mr. Hall was a member of the firms insurance industry specialization group. Since 1991, he has provided board member, senior executive, independent captive management, professional, and litigation support services to insurance and captive insurance companies.About CHSI Captive Insurance ManagersCHSI Captive Insurance Managers helps companies manage risk and control liability costs. Leveraging a cutting-edge technology infrastructure and experienced professionals, they design and manage captive programs that take the worry out of commercial liability risk and put money back in the policyholders pockets. CHSI Captive Insurance Managers provide opportunities for companies in common industries or professions to come together and share-risk. They can also assist with pure captives for single member programs.About CHSICHSI helps drive profits to the bottom line of its clients. Workers compensation costs have to be controlled in a successful business. CHSI develops programs and services that drive insurance costs down for employers so they can reinvest in their business. Founded in 1996, CHSI has assembled a team of industry experts to bring cost control solutions and leading-edge technology in workers compensation and related fields, to give small and medium-sized employers a competitive edge usually only available to larger companies.