Every major piece of insurance legislation contains trade-offs that are designed to ensure that there is a level playing field between all the parties involved, no matter how adversarial the relationships might be. This emphasis on fairness is a key part of the legislative process as lawmakers seek compromises that clear the way to enact a major reform bill. Take for example the workers' compensation reforms enacted by lawmakers in 2003. Much of the comprehensive re-write of the law was aimed at reducing employer/carrier costs by making certain changes in areas such as attorneys' fees and injured workers' benefits. The law also sought to remedy certain inadequacies, such as increasing the reimbursement amounts for medical services.

Many view the 2003 reforms as a victory for carriers, the proof of which is seen in the dramatic reduction in employers' workers' compensation premiums. But in so much as carriers successfully fought for changes, lawmakers also felt the obligation to ensure that carriers and third-party administrators met their own obligations under the law. To that end, lawmakers stiffened the requirements for carriers and third-party administrators to pay injured workers' benefits and medical bills within certain statutory time frames or face substantial penalties.

Recently, the Division of Workers' Compensation Bureau of Monitoring and Audit (BMA) is reporting that an overwhelming majority of insurers are meeting the standards for the timely paying of injured workers' benefits and medical bills. After evaluating more than three million medical bills from roughly 900 insurers and third-party payers, auditors found that the majority of payers are meeting the statutory performance standards designed to increase the efficiency and accountability in the system. The audits examined both indemnity payments to injured workers and also monies owed to health-care providers, dental-care providers, hospitals, and claims for drugs and supplies. The figures are contained in the latest DWC annual report that covers the period from June 30, 2005 to July 1, 2006.