Workers comp impacted by medical facility visits
- Facility services have been the main cause of increased medical costs for workers’ compensation in recent years.
- The main reasons for these increases are the amount paid per visit and the number of visits per claim.
- Facility-paid cost per claim grew 3.3% annually, with regional averages ranging from 2.5% to 4.1%.
- Increases in the amount paid per visit were the main drivers of increased facility costs for the past decade.
Multimillion-dollar indictment for fraud
- Juan Escobar and his drywall and carpentry companies were indicted for defrauding the New York State Insurance Fund of nearly $3 million in insurance premium payments.
- Escobar significantly underreported his payroll during annual insurance premium audits.
- He cashed more than $26 million in checks at locations across Manhattan and Queens during the course of this scheme, using the cash to fund his companies’ unreported payrolls.
- These proceeds were funneled to his off-the-books payroll, which typically totaled more than $50,000 a week.
Industry growth could take a hit
- Premium growth in the workers’ compensation industry is not likely sustainable, according to Fitch Ratings.
- Workers comp renewal rates fell 1% for each of the first three quarters of 2022, indicating strong competition in the market.
- This is likely to continue in 2023 and will drive prices lower, Fitch Ratings reported.
- There is also growing pressure from medical inflation, which had been relatively tame during 2022.
Amazon workers retain workers comp attorney
- The Amazon Labor Union has retained a workers’ compensation law firm, McIntyre, Donohue, Accardi, Salmonson & Riordan LLP, to help injured workers at the firm’s Staten Island warehouse.
- The union won its first and only victory against Amazon in April when workers at the company’s Staten Island fulfillment center, or JFK8, voted 2,654 to 2,131 to unionize
- Complaints about the rapid pace and injuries at Amazon workplaces have made national headlines in recent months.
- The company has also been cited by federal investigators for various safety violations.