First Health and Concentra (the managed care part, not the clinic part) have been out talking wiith customers and prospects, and information is starting to bubble up from other sources as well. At this point, no final decisions have been made (as the deal is not final that’s no surprise), but there are some clear directions.

Continue reading First Health & Concentra – predictions for the near term

Workers comp reform is moving thru Albany at blinding speed. The state Senate and Assembly both passed the reform bill unanimously, a previously unheard-of accomplishment for an issue that has been so contentious.

Continue reading NY Comp reform is reality…almost

I’m on a bit of a tear these days on the work comp drug thing; the more I talk with knowledgeable people the crazier it gets. Several recent conversations concerned the factors driving up costs: here’s what a few industry experts believe.

Continue reading What’s driving up drug costs in comp

In what can best be described as a possible return of completely rational behavior, CorVel’s stock is entering the stratosphere. From above.

Continue reading Corvel is falling

It looks like NY Gov. Eliot Spitzer (D) has done in two months what his predecessor couldn’t do in two terms – reform the New York workers comp system. If early reports bear out, this will be a huge win for injured workers, employers, insurers, and managed care firms.
That could be a rather significant “if”… but the inclusion of labor, business, and members of the opposition party in the reform process make it highly likely the package will pass.

Continue reading New York’s Workers Comp reform

The investment debacle at the Ohio Bureau of Workers Comp has resulted in jail terms, millions of dollars in losses, criminal indictments, public pillorying of politicians, and a change in the Governor’s office.
As if that wasn’t enough, Moody’s now informs us that the $300 million in losses will affect the state’s economic outlook. The big investment firm downgraded Ohio’s economic outlook to negative from stable.
The downgrade may result in higher interest rates, raising the state’s cost of borrowing for public works projects. And all because a few political hacks took advantage of their connections.

Jon Coppelman at Workers Comp Insider has written a thoughtful and incisive piece on the new WC market in West Virginia. The state had been (actually, until the middle of this year it still is) a monopolisitic state – employers had to buy their WC insurance from the state.
That’s changing to an open competitive market. The state WC fund, now known as Brickstreet, is going to be the largest carrier in WV for some time, but will inevitably lose market share as competition enters. Jon points out that managing that transition, while adequately serving the needs of existing policyholders, is going to be an incredibly complex and difficult job. Their customer base will shrink, making one of the first tasks of Brickstreet’s execs the management of staff reduction. While building a new agent service infrastructure, upgrading systems, and figuring out how to effectively compete – something they never had to worry about before.
Yikes.