The Insrance Industry Affected By Terrorist Attacks

People other than oneself are blamed for problems that are seen in the system used in compensating workers. Accusing fingers are pointed toward employers and employees of different professions and backgrounds. The California Department of Insurance centers in on the bosses of companies.

Employer fraud is rampant in workers' compensation insurance. Among the different forms of fraud committed by employers would be reporting the wrong amount of an employee's pay and giving the wrong classification to an employee. The state's top insurance regulator views this another way. According to the insurance commissioner of California, employers pay large amounts of money to employees who abuse workers' compensation insurance.

Regarding this current crisis, an attorney who deals with workers' compensation issues says no one can be kept from taking the blame. But he saves his strongest defense for the workers themselves. Workers hardly have any cases of fraud. The Web site of the California applicants' attorneys association reports that out of 4 million injuries reported from 1993 to 1998, arrests and convictions were minimal.

According to him, it would give him a great relief if employers and employees come to the realization that they are in the same situation against insurance companies. Five years after the insurance industry was deregulated in 1995, costs of insurance dropped. The number of claims went down as well, and the insurance companies earned much from investment of those premiums in the stock market.

Problems arose yet again during the events of 9/11. Terrorist attacks cost the insurance industry around $40 billion, and it also closed down several companies. He believes that the 235 private insurance companies that still provide workers' compensation in the state of California should be included in the Web site of the state.

Another point of disagreement is that when there's a claim, prices rise, and when there's no claim, prices stay as they are. Those employees who are free from claim would be rewarded if Senate Bill 191, which he supports, were to be implemented.

A physical therapist uses the word compitis as a description for the patients he usually treats in his office. This gentleman, who specializes in spinal care at a rehabilitation center, said he thinks there is often a significant difference in the recovery time between similar work and non work injuries.

As an example, he cites a person who recovers faster and goes to work sooner after a softball or motor injury compared to a person who gets the same injuries in the work setting. This new payment system would help in keeping the names of workers' compensation patients in the books of health specialists.

Submission of the paperwork ensures that the check will be sent to the health professional promptly. In contrast, HMOs would ask so many questions and would always keep looking for paperwork.

Around 40% of the patients of chiropractors would have workers' compensation, yet this one chiropractor's patients estimate to about only 15%. He says that chiropractors would often take advantage of the system by using and billing for several other services and therapies. He knows what patients do to abuse the system. Through certain tests, we can tell whether a patient has fake injuries or not.

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