Sunday, April 22, 2007

State of The Industry

As we creep past the 3 year anniversary of the passage of SB899, it is time to reflect on what has been gained, lost and is yet to come.

GAINS: Across the board, employers, especially self-insured employers have seen substantial reductions in the cost of Workers' Compensation. Cost are down anywhere from 10 to 20% across the board. In addition the number and frequency of claims reported are down significantly. There is a general sense in the industry that a corner has been turned and the employer has the upper hand.

LOSSES: Although there are fewer claims, severity seems to have increased over the past 3 years. Applicant attorneys are squeezing every drop of PD and medical treatment out of the claims that do exist. The issues of apportionment and the appropriate PD schedule to use are being hotly contested.

THE FUTURE: Where do we go from here? There are a variety of legislative and court challenges pending that may adversely affect the positive gains that employers have seen recently.

Stay tuned for more info in the coming days.