Reading Room

A proposal has been introduced in the NJ Assembly formalizing an alternate dispute resolution (ADR) program for workers’ compensation. The proposal would allow the establishment of such a program through collective bargaining units and insurance carriers and group self-insurance plans.

In a landmark decision of immense national significance, the US Sixth Circuit Court of Appeals ruled that a RICO claim brought by injured workers against their employer, insurance carrier and employer medical expert could proceed. Several injured workers brought the Federal Racketeer Influenced and Corrupt Organizations Act (RICO) against their employer, Crawford & Company and [cut-off treatment doctor] Dr. Saul Margules.

The Canadian delegation to the Rotterdam Convention was able to lobby effectively to prohibit a ban on asbestos for another two years. The Canadian mines will continue to churn out the killer fiber and ship it to unsuspecting countries as a result of an effective major lobbying effort of the Canadians to sway the votes of India, Pakistan, Vietnam and the Philippines.

Implementation of the mandatory insurance company reporting process mandated pursuant to Section 111 of the Medicare, Medicaid, and SCHIP Extension Act of 2007 (See 42 U.S.C. 1395y(b)(7)&(b)(8) have now been unveiling by CMS.

 At a recent hearing of the US Senate Committee on Environment and Public Works, Senator Max Baucus presented a report revealing that the Federal government failed to take the appropriate action to declare Libby, Montana a public health emergency in 2002. The disregard of the federal government led to a lack of funding and manpower in cleaning up the asbestos contamination according to the Senator.

The efforts of the insurance industry to revive the previously fatally ill CMS reform legislation can be declared over and the life support disconnected following the Congressional actions to bailout Wall Street. The bill had been given a bounce, like a dead cat thrown against the ground, by the insurance industry, and some misinformed stakeholders, but economics and public opinion will not support the effort any longer.

Delay has always been a problem when injured workers need medical treatment.  Traditionally, insurance companies, especially in hard economic times, have sought to hold onto their money and not distribute benefits.

New Jersey’s workers’ compensation problems are far from over as the NJ State Commission of Investigation (SCI) has purportedly launched an investigation of the NJ Compensation Rating and Inspection Bureau. The NJ system became the center of media attention following a Star Ledger newspaper series reporting serious problems.

The escalating financial crisis of Lehman Brothers [stock down 94% Jan-Sept 2008], may have a major impact on workers’ compensation throughout the US. Over this weekend the financial gurus scheduled meetings in an effort to avoid a complete crash of Lehman Brothers. In the meantime, the waves of this potential economic meltdown are sending hurricane type surges throughout the US workers’ compensation system.
 

Yet again the basic theme of workers' compensation, "periodic payments," was reiterated by a Judge of Compensation. This philosophical premise, periodic payments, is the basic foundation upon which workers' compensation is structured and flies directly in the face of those who advance a legislative change to promote CMS workers' compensation set aside agreements.