M A Bernstein - Workers' Compensation

	M. A. Bernstein & Company
	Workers' Compensation

The revolution in health care has had a major effect on the workers' compensation market in recent years, with roller coaster effects.

The insurance industry has responded by withdrawing from some jurisdictions, by finding niches, and by making surcharges. It has found innovative funding methods which sometimes seem to eliminate the concept of insurance from the transaction. It has sometimes managed cases in a way which might appear contrary to the basic concepts of wellness and recovery. It has on occasion defined work narrowly in an attempt to manage risk by shifting responsibility to other medical and disability coverages.

The result is that each employer needs to define and defend the his own view of his responsibilities to his employees and to continuously monitor the day to day application of those goals and strategies in the operation of his insurance plans. A growing trend is in the coordination or combination of the Workers' Compensation plan with other medical and disability programs.

M. A. Bernstein & Company can suggest and illustrate a variety of funding plans to provide separate or 24 hour programs

A new application of an existing method is about to take effect in the State of Ohio. In Ohio the state fund continues to maintain a monopoly, with the only choice being in industry pools within the fund, and self insurance. As a result there are severe restrictions on the ability of employers to exercise any control over costs within the insurance mechanism. Now the Bureau of Workers Compensation has mandated that all employers provide a managed care option. We expect that this will have a meaningful effect on loss costs, and resultantly on premium levels.