Something better than workers comp

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PostPosted: Sun Jun 28, 2009 2:45 am   Post subject: Something better than workers comp  

I have only one employee and I am not required to carry worker's comp although I understand I am still liable for his health and injuries on the job.

If I purchase his health care are they still required to pay any claims (health or accident) if he is injured on the job, or will they say an on the job injury should be covered by workers comp and deny the claim.



I also have about three accident indemnity policies on him that pay for his injuries on or off the job. But, is there a disability or injury policy available that serves the same purpose of workers comp and pays his salary while recooping at home.


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Mike O' the Ozarks
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PostPosted: Mon Jun 29, 2009 6:36 pm   Post subject:   

WC would be primary over health insurance but lacking WC, the health carrier would pay the claim.



I'm guessing the cost of WC is prohibited but keep in mind that, as you mention, WC would probably be the "sole remedy". Meaning if you provided WC an injured employee could not collect anything from you other then WC regardless of why the accident/injury happened.

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PostPosted: Tue Jun 30, 2009 12:31 am   Post subject:   

I'm sure you understand how workers comp premiums work, but for those that don't...here's an option that many companies don't tell you about. One of the main problems with Workers Comp premiums is that there is an audit at the end of the year. Premiums are calculated based on a percentage of payroll. At the end of the year, if the payroll amount is significantly higher than originally calculated...the Workers Comp audit could result in a very large bill that would have to be paid immediately.



If you use a payroll company, Pay by Pay workers comp is now a pretty common feature. The payroll company tracks your workers comp premiums throughout the year and adjusts is on a per payroll period. You still have the audit at the end of the year, but no huge amounts coming out of nowhere.



It's a lot like having too much withheld from your personal taxes or paying too little. The process makes sure that you stay on track throughout the year.



Maybe you would find that Workers Comp premiums would be more affordable if done this way, or have you already checked?

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PostPosted: Tue Jun 30, 2009 5:01 am   Post subject:   

Does he have to carry workers policy when he has only one employee?



I think every state maintains certain employee limit below which it is not mandatory for the employer to carry workers compensation policy. What is the limit in your state, Mike?



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PostPosted: Tue Jun 30, 2009 2:54 pm   Post subject:   

I believe you have to have at least 3 full time employees before you are required to carry workmans comp in Missouri. I just think dollar for dollar, workmans comp for the employee doesn't measure up. Yeah it protects me as an employer placing a maximum on liability exposure, but it doesn't really offer an employee much exept a lot of denials and hearings instead of just taking care of the man and providing an income immediately after an accident or for proper care and rehab.



Quote:
WC would be primary over health insurance but lacking WC, the health carrier would pay the claim.





My question would be, could the health care provider subrogate the cost back to the employer who is liable even though he paid the health care premium?


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PostPosted: Tue Jun 30, 2009 4:49 pm   Post subject:   

Quote:
My question would be, could the health care provider subrogate the cost back to the employer who is liable even though he paid the health care premium?
Yes, as the carrier is subrogated to what they pay with the same right of recovery as the employee. If the employer is liable and the employee can collect for this reason, so can the health carrier. With that said, I've seldom/never seen a health carrier get very aggressive in their recovery efforts. Its usually the case of them sending out letters asking to be paid and that is about it. But this does not mean that they could not be more aggressive.
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