Insurance Business America issue 5.07

Page 16

UPFRONT

WORKERS’ COMP UPDATE NEWS BRIEFS Insurer battles porn stars’ HIV claims The California State Compensation Insurance Fund claims it has no obligation to cover adult movie studio Cybernet Entertainment in defending lawsuits from three male performers who claim they contracted HIV during video shoots. According to The Hollywood Reporter, Cybernet had workers’ compensation insurance via the state fund during the period in which the alleged injuries occurred, but while the state fund accepted the claim, it argued that it has already paid “appropriate medical expenses” and would not pay for additional negligence-based causes of action in the performers’ lawsuits.

Prisoners denied workers’ comp in West Virginia The West Virginia Supreme Court has ruled that inmates involved in workrelease programs are not qualified to receive workers’ compensation benefits. The Charleston GazetteMail reported that the court upheld a 2015 Workers’ Compensation Board of Review decision to deny workers’ compensation to an inmate who injured his hand in a wood chipper while working on a road in 2013. The court confirmed the board’s decision that the prisoner’s equal protection rights had not been violated, as he was working on a volunteer basis.

Ohio mayor says unauthorized immigrants need workers’ comp

James Wolf, mayor of Cincinnati suburb Mt. Healthy, has criticized state legislation that would deny workers’ compensation benefits for unauthorized immigrants who are

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injured on the job. “It will provide cost savings to employers who hire undocumented workers by allowing them to avoid workers’ compensation fees,” Wolf said in an opinion piece on Cincinnati.com. “In the end, companies that break the law and hire undocumented workers will save money while their workers lose protections and we cover their costs.”

Workers’ comp system “broken” in Guam Workers’ comp in Guam is a “broken system,” according to lawyers in the US territory. According to the Guam Daily Post, attorney John Bell has taken JoAnnalynn Fullerton, the administrator of Guam’s Worker’s Compensation Commission [WCC], to court, alleging that she has repeatedly swept claims under the rug. Under the island system, the WCC and the six-member panel at the Guam Department of Labor decide claims outcomes, but they meet only every six months or so. Delays in board decisions can subject workers to months without compensation.

Opioid bill introduced in overdoseplagued state

At least 4,600 Pennsylvanians died in 2016 from drug overdoses, according to data from the Drug Enforcement Administration. But recently introduced state legislation designed to curb the over-prescription of opioids could change that. The controversial bill calls for the state to develop a formulary for sanctioned opioids and other drugs for employees receiving medical and financial assistance under state workers’ compensation. Non-sanctioned drugs would require written authorization from a doctor; insurance companies could challenge a prescription via the state’s existing appeals process.

Aging blue-collar workforce presents challenges As dockside workers get older, increased rates of injury are putting a strain on workers’ comp in this specialty area Shoulder injuries, back injuries, traumatic crushing injuries: Working on the country’s ports and waterways is physical, dangerous work – and as the workforce ages, these workers and their insurers are having to adapt to the challenges. Workers’ compensation for dockside workers is a specialty area, regulated by the federal government under the US Longshore and Harbor Workers’ Compensation Act. American Equity Underwriters [AEU], part of the AmWINS Group, is one of the companies that specializes in USL&H insurance. “We have a lot of welders, sandblasters, painters, guys who are carrying around heavy equipment,” says Will Scheffler, AEU’s senior vice president and director of claims. “You see a lot of shoulder injuries, back injuries, cervical injuries, in addition to the traumatic type events, where they may be pinned between two pieces of equipment and suffer a leg injury or something like that.” As this workforce ages, those injuries – particularly the heavy-lifting injuries – are more prevalent than ever. “It’s really an employer issue … but it presents problems on the claims side as well,” Scheffler says. “Because people are

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7/07/2017 4:39:43 AM


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