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Workers' Comp Carriers: Passing Audits with Flying Colors

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

By Michael H. Adams | Updated on August 31, 2007

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.

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