News & Events

Wednesday, December 21st

Important Changes to Workers’ Compensation Policies

FINAL REMINDER: AB 2883 Deadline December 31

Starting January 1, 2017, AB 2883 goes into effect, changing the parameters in which owners can be excluded from Workers’ Compensation coverage. Below is an overview of the changes to be enacted:

Corporations: In order to be eligible for exclusion from coverage, the individual must be an Officer or Director and must own 15% or more of the issued stock.
Partnerships and Limited Liability Companies: In order to be eligible for exclusion, the individual must be a general partner if the entity is a partnership; or the individual must be a managing member if the entity is a limited liability company.

Revocable Trusts: Grantors of revocable trusts are no longer eligible for exclusion.

By now you should have received an explanatory notice and waiver from your insurance carrier. These waivers must be signed and returned to your carrier by end-of-business on December 31. If a waiver is not received and accepted by December 31, 2016, any employee that had previously been exempt from coverage, must be included on the policy and will be charged premium up until the date an executed waiver is submitted to the insurer.

Please contact your Account Manager should you have any questions.

 

IMPORTANT! Changes to First Aid Claim Reporting

Effective January 1, 2017 insurers will now be required to report medical costs incurred on First Aid claims to the Workers Compensation Insurance Rating Bureau (WCIRB), regardless of who paid the medical fees.

You might be asking yourself, how does this change affect me?  If a claim fits the First Aid Criteria and you pay the medical bill directly to the provider, it will still be included on your Experience Modification worksheet. On the other hand, should you allow your carrier to pay the medical bill, they will only be charged the contracted rates, which could be substantially lower. In other words, you may find it in your best interest to think twice before paying a claim out of pocket.

If you have any questions regarding this or any other Work Comp claim reporting matter, please contact our Workers’ Compensation Claims Analyst, Mary Jean Collins, mcollins@morrisgarritano.com.


Thursday, December 15th

December 2016 Newsletter

Our December newsletter is here! During this rainy day, it’s the perfect thing to read while curled up on the couch with some hot chocolate. Or, while sitting at your desk and working. Either way, enjoy!