Insurance trusts' collapse staggers state, industry leaders: Employers may pay more for workers' c

Insurance trusts' collapse staggers state, industry leaders: Nearly 5,000 employers may pay more for workers' comp

www.poughkeepsiejournal.com

The collapse of a group of workers' compensation self-insurance trusts run by a Poughkeepsie-based company is the most extreme such breakdown the field has seen in New York, according to state and industry officials.

The company, Compensation Risk Managers LLC, often called CRM because it is a subsidiary of CRM Holdings Ltd., faces charges from the state Workers Compensation Board, which has threatened to pull CRM's license as a third-party administrator of trusts.

(visit the link for the full news article)



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[edit on 5/19/0808 by jackinthebox]

This is big news locally, and is probably a sign of things soon to some nationwide. Local municipalities and one of the two largest medical centers in the region are going to be directly affected. With 5,000 employers in the trust, it is hard to calculate how many people will wind up paying for this collapse in the months to come.

...Such a proposal to strip a company of its administrator license is apparently unprecedented in the decades-long history of self-insured trusts...

When we start seeing these "unprecedented" collapses happening more and more, you know this economy is headed down the drain. I think this lends some more weight to the related thread I have linked to.


www.poughkeepsiejournal.com
(visit the link for the full news article)

More to the point, just about everyone in the region will wind up paying for it. First, it will directly affect the employees. They will be denied wage increases and/or there will be a hiring freeze. In some cases, we will see even more layoffs in a region with constantly rising rates of unemployment.

Then, costs will be passed along to consumers. For someone like myself without medical insurance, the cost of a hospital visit is already unbearable, yet this is one of the employers affected by this collapse. Then there are the local governments who are a part of this trust. The increased burden on them will obviously be passed along to the taxpayer. These are just a few examples.

Bad times friends, and things are still getting worse. The fallout from this will be felt for years to come. And this is only one of many stories of the crumbling economy.

Update

www.ins.state.ny.us...