Printer Friendly

UAW UNVEILS $30 MILLION WORKERS' COMP COST SAVINGS PROPOSAL; WILL ENABLE STATE SYSTEM TO DEAL DIRECTLY WITH DOCTORS, HOSPITALS

 COLUMBUS, Ohio, July 12 /PRNewswire/ -- Ohio's UAW leaders have proposed that the Bureau of Workers' Compensation bypass insurance companies and negotiate fees directly with hospitals and doctors to save at least $30 million in discounts and stop the payment of nearly $6 million which private insurers are currently planning to pocket for handling the paperwork.
 The proposal, in letters delivered today to Ohio legislative leaders, comes at a critical moment when a highly controversial compromise bill, favored by the insurance companies and big business as an initial step towards privatization of a $12 billion system, is being hammered out in urgent summertime committee sessions, even as the General Assembly is in recess, according to the UAW.
 One reform proposal would have the Bureau of Workers' Comp let insurance companies bid competitively to determine which one would negotiate cost reductions with hospitals.
 "Why do we need to pay insurance companies to serve as middlemen, negotiating fees for Workers' Comp discounts from hospitals and doctors when the system can do the work, reduce costs and negotiate greater savings?" asked Jack Sizemore, chairman of the Ohio State UAW CAP Council and director of UAW Region 2B, and Warren Davis, secretary treasurer of Ohio State UAW CAP and director of Region 2, as they released the letter.
 "Today Ohio is paying a high premium for health care for injured workers. Our proposal will make the system less costly. It is not disputable that the state system, which is certainly much larger than any insurance company, can deal directly with hospitals to get greater discounts for medical expenses for injured workers than insurance companies, and deliver a level of care to enable those who can, to return to work," said Sizemore and Davis.
 "If each hospital billed workers' compensation cases at the maximum discount rate given to any insurance company, the annual savings would doubtlessly exceed $30 million," wrote the UAW leaders in letters to Governor George Voinovich, President of the Ohio Senate Stanley Aronoff, Minority Leader of the State Senate Robert Boggs, Speaker of the Ohio House of Representatives Vern Riffe and House Minority Leader Jo Ann Davidson.
 The UAW leaders maintain the workers comp system could also "set its fees on a significantly discounted basis" to doctors, thereby eliminating a need for a big business-driven "managed care" network in which doctors are forced to offer low rates to win medical work and deliver cut-rate service to injured workers.
 The UAW, with over 200,000 members and their families around the state, has said it views action on Workers' Comp as a litmus test of support for injured workers and labor in general, a fact which will not escape House Democrats struggling to hold on to their slim margin in the next election.
 -0- 7/12/93
 /CONTACT: Warren Davis, 216-447-6080, Jack Sizemore, 419-243-4611, or Robert Kopp, 614-464-2055, all of the UAW/


CO: United Auto Workers ST: Ohio IN: AUT INS SU:

AR -- CL003 -- 0313 07/12/93 10:07 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 12, 1993
Words:497
Previous Article:PROVIDENT BANCORP, INC. REPORTS SECOND QUARTER EARNINGS ROSE 24 PERCENT
Next Article:BANC ONE AWARDED SERVICE CONTRACT FROM FDIC
Topics:


Related Articles
BUSINESS HAS LITTLE CONFIDENCE CLINTON HEALTH PLAN WILL CONTROL SKYROCKETING WORKERS' COMP COSTS, MERRITT PUBLISHING SURVEY REVEALS
Workable workers' comp.
PENNSYLVANIA GOVERNOR RIDGE TELLS SOUTHCENTRAL PENNSYLVANIA WORKERS' COMP REFORM MEANS JOBS
OSHA Standard Hits a Nerve.
Has competition vanished? Coventry makes big gains in the workers' comp marketplace, but there's still plenty of room for alternative models.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters