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Insurance Commissioner Approves Comp Rate Reduction

Insurance Commissioner Dave Jones adopted and issued a revised advisory pure premium rate, lowering the benchmark to $2.46 per $100 of payroll for workers’ compensation insurance, effective July 1, 2015. The commissioner adopted the recommendation of the Workers’ Compensation Insurance Rating Bureau (WCIRB), which filed a recommendation to lower the advisory pure premium rate mid-year. Mid-year pure premium rate adjustments are not the norm-new data reflecting a significant change in underlying workers’ compensation costs is required before the commissioner will issue a mid-year adjustment.

Jones issued the mid-year advisory pure premium rate one week after a public hearing and careful review of the testimony and evidence submitted. The commissioner reduced the advisory pure premium rate mid-year, based on insurers’ cost data indicating that in 2014 there was a reduction in workers’ compensation insurers’ medical costs. The reductions in medical costs appear to be the result of SB 863 (De León), signed in 2012. The WCIRB noted that not all of the cost reductions projected from SB 863 have materialized. Other costs continue to rise, but those increases were offset by the reduction in medical costs.

The WCIRB’s pure premium advisory rate filing demonstrated that workers’ compensation insurers continue to charge premiums that are close to the estimated cost of providing benefits and adjusting expenses. The rates actually charged to employers, however, are on average lower than the rates filed by insurers. Workers’ compensation insurance rates are not set by the Department of Insurance. Under California law, workers’ compensation insurers set their own rates.

The WCIRB will evaluate workers’ compensation insurance costs again in the fall of this year when it files its 2016 pure premium rate benchmark recommendation with the Department of Insurance. That filing will provide an opportunity to assess whether medical costs continue to be lower and what changes, if any, there are in other costs in the system.

The commissioner’s pure premium decision is advisory only. Under California law, the commissioner does not set or have authority to reject workers’ compensation insurance rates. The commissioner’s advisory pure premium rate is not predictive of what an individual insurance company may charge its policyholders because the review of pure premium rates is just one component of insurance pricing.

The purpose of the pure premium benchmark rate process is to review costs in the workers’ compensation insurance system and to confirm that rates filed by insurance companies are adequate to cover benefits for injured workers.

The mid-year pure premium rate benchmark of $2.46 per $100 of payroll is a 10.2 percent reduction in the current benchmark and 5 percent lower than the average industry-filed pure premium rate as of January 1, 2015, which was $2.59 per $100 of payroll.

DWC Posts Draft Home Health Care Fee Schedule

The Division of Workers’ Compensation posted draft home health care fee schedule regulations on its forum.

California Senate Bill 863 requires the Administrative Director to establish a fee schedule for home health services. Home health services range from skilled nurses and therapy services provided by home health agencies to unskilled personal care or chore services that may be provided by personal care aides. The 2015 RAND study, Home Health Care for California’s Injured Workers – Options for Implementing a Fee Schedule, identifies options for a single fee schedule that would cover the full range of home health services.

Under the proposed regulations, home health care services shall be provided as medical treatment only if reasonably required to cure or relieve the injured employee from the effects of his or her injury and prescribed by a licensed physician and surgeon, in accordance with Labor Code section 4600, subdivision (h). Home health care services are subject to the utilization review and independent medical review processes set forth in Labor Code sections 4610 and 4610.5, et seq.

An in-home assessment of the injured worker’s need for home health care shall be performed by a qualified registered nurse, physical therapist or occupational therapist employed by a home health care agency. Assessments of an injured worker’s need for home health care will be performed using CMS’s OASIS (Outcome and ASsessment Information Set), a group of standard data elements used by CMS to assess patients’ needs for home health care services, which is incorporated by reference into the regulations.

Table A of the proposed regulations set forth a payment methodology and fees for skilled care by licensed medical professionals and unskilled personal and chore services for injured workers in the home setting. The lowest hourly rate specified on this Table is for chore services and Homemaker services NOS at $13.60 per hour. A home health aide or certified nurse assistant, is $17.10 per hour, and attendant care services show an hourly rate of $17.48.

The draft regulations will be posted on the DWC forum for a period of 10 days. Stakeholders and members of the workers’ compensation community are invited to comment on the draft regulations. Comments will be accepted on the forum until 5 p.m. on May 17, 2015.

Simi Valley Insurance Broker Arrested for Fraud

Steven Tinto, 50, of Simi Valley, was arraigned Monday on two felony charges of insurance fraud and grand theft. Tinto allegedly pocketed a client’s premium payment instead of forwarding the payment to the insurer and compounded his crime by issuing a bogus insurance certificate.

Steven Tinto transacted business as Outback Insurance Services. In January 2014, Tinto received a $1,500 premium payment on a workers’ compensation insurance policy from a licensed contractor. Instead of sending the payment to the insurer, Tinto pocketed the cash. When a client of the contractor requested proof of insurance, Tinto faxed a bogus insurance certificate that indicated the contractor was insured for $100,000. When the ruse was discovered by the policyholder, Tinto issued two checks to his client as a supposed refund of premium. Tinto’s checks were returned due to insufficient funds and the policyholder was left exposed to the potential risk of an uninsured loss.

This case was investigated by the California Department of Insurance and is being prosecuted by the Ventura County District Attorney’s Office. Tinto is due back in court on June 8, 2015 for a preliminary hearing. “This case serves as a reminder that fraud is a costly crime for insurers and consumers,” said Insurance Commissioner Dave Jones.”Tinto’s alleged theft left the policyholder at great financial risk and their workers in danger because Tinto did not forward the premium to the insurance company, leaving the consumer without coverage.” As of April 30, 2014 Steven Tinto is no longer a licensed agent by the California Department of Insurance.

CCWC’s 13th Annual Conference Set For July 22-24

The California Coalition on Workers’ Compensation (CCWC) announces three days of idea generation, education, and unparalleled networking opportunities – enhanced by the thrills and excitement of Disneyland® – at the CCWC 13th Annual Conference, taking place July 22-24 at Disney’s Grand Californian Hotel® and Spa. CCWC is dedicated to providing the leadership, education, and advocacy that are essential to an equitable and efficient workers’ compensation system. Each year, it demonstrate this focused commitment by presenting a content-rich conference that addresses all aspects of the industry. At the CCWC conference, you’ll find participants from the areas of human resources, health and safety, risk management, and claims – as well as medical professionals and service providers. It’s the place where leaders, key decision-makers, and employers gather to experience and share diverse perspectives, energetic interactions and enough stimulating input to keep ideas brewing and evolving long after the conference ends.

Among the many speakers over the three day event, David Lanier, the Secretary of the California Labor and Workforce Development Agency and Christine Baker, the Director of the Department of Industrial Relations will provide an update on the implementation of SB 863 and discuss other issues that are relevant to workers’ compensation stakeholders on the Thursday, July 23 session. CCWC’s advocacy will provide an update on California politics as it relates to workers’ compensation. They will also present a review of 2015 bills that affect the industry, offering information regarding the positions that the CCWC has taken on them.

Alfonso J. Moresi, Commissioner, Workers’ Compensation Appeals Board/Senior Partner, Law Office of Laughlin, Falbo, Levy and Moresi, Richard L. Newman, Chief Judge for the California Department of Industrial Relations, Division of Workers’ Compensation and Mark Priven, Principal, Bickmore Risk Services will present a lively discussion among experts about workers’ compensation in Northern and Southern California. What are the differences so many refer to, and why do the discrepancies exist when legislation, regulations, and case law are the same for all?

Tim East, Director, Corporate Risk Management, The Walt Disney Company will present his topic “China Today – Workers’ Compensation Is Born in the World’s Oldest Country.” For the past 10 years, China has emerged as a dominant economic and political power. Yet the country’s workers’ compensation system is only that old, becoming widely mandated in 2004. Learn what is taking shape in one of the world’s most populous nations and how workers’ compensation compares to our experience in California and the United States.

Saul Allweiss Esq. and Cathey Jackson from Safeway will discuss “How to Properly Assess Requests for Home Health Care through UR and IMR.” This informative session will cover a variety of topics, including responding to requests for home health care, applying best practices, and requiring physicians to quantify the nature and extent of the HHC and demonstrate the medical necessity. Additional areas of focus will include the timely submission of requests for HHC to UR, the need for complete documentation in response to requests for IMR, and appropriate reimbursement rates. Challenges presented by recent WCAB decisions in Neri-Hernandez and Patterson will also be discussed.

Jamie Berenson from Glauber/Berenson and Rene Folse and Todd Kelly from Floyd, Skeren and Kelly will provide a case law update. This session will focus on the latest and most impactful decisions at the board and present how both defense and applicant attorneys view them. These and many, many other notable speakers will present topics of interest at the three day event.

Minimum Continuing Legal Education (MCLE) credits are available to attorneys, and general continuing education credits are available to claims adjusters and CPDM/CCMP-designated individuals who attend the educational sessions. The specific number of credit hours will be determined by the State Bar of California and the Insurance Educational Association. Updates will be provided on the conference web page.

The California Coalition on Workers’ Compensation is a member-driven alliance that has gained prominence for extensive industry knowledge and an unwavering focus on advocacy and educational outreach. We are committed to applying these skills and services in ways that will have the most positive impact on the workers’ compensation industry. Strategically positioned at the forefront of legislative and regulatory reform, CCWC enjoys a vantage point that enables us to make our voices heard for the benefit of public and private sector employers and their workers throughout California. Our legislative advocates influence and incite change on behalf of our members, offering an invaluable benefit that affects the workers’ compensation arena in ways that no other organization can.

Study Shows 17 % of Discharged ER Patients Given Opioids

Experts say too many patients are being prescribed opioid painkillers by emergency room doctors, and a program created by Obamacare could be enabling the problem. A new study released this week and summarized by the Washington Examiner found 17 percent of nearly 20,000 patients were discharged from emergency rooms with an opioid prescription. Experts and lawmakers say a push under Obamacare for hospitals to get good patient satisfaction scores is one cause of the problem.

America is in the midst of an opioid “epidemic,” according to the Centers for Disease Control and Prevention. Painkillers killed more than 16,000 people in 2013. A huge part of the problem is the prescribing of painkillers, which quadrupled from 1999 to 2013. Emergency room prescriptions are part of this trend, but data are lacking on the reasons opioids are given out, according to the study published in the Annals of Emergency Medicine.

Patients with back pain got the most opioids, followed by those with abdominal pain. “The majority of prescriptions had small pill counts and almost exclusively immediate-release formulations,” according to the study. Oxycodone, the active ingredient in Oxycontin, was the most prescribed, with 52 percent.

Doctors may feel pressured by hospital administrators to prescribe opioids because it may lead to a better score on a patient satisfaction survey, experts said. A program created by Obamacare tied extra funding to high scores on the survey. “Their reimbursement and quality ratings are linked to ways patients rate them on categories,” said Dr. Andrew Kolodny, president of the doctor advocacy group Physicians for Responsible Opioid Prescribing. The survey has three questions about pain, including whether the physician adequately treated pain. While it sounds like a benign question, “it forces physicians and surgeons to not only ask about pain but be sure they are prescribing appropriate medication,” said Dr. David St. Peter, a hospitalist with Saratoga Hospital in New York. St. Peter works to admit patients to the hospital if they need further treatment after the emergency room. The Centers for Medicare and Medicaid Services recently announced publication of a five-star rating system for hospitals based in part on satisfaction survey scores.

This practice hasn’t gone unnoticed by Congress. Sens. Chuck Grassley, R-Iowa, and Dianne Feinstein, D-Calif., wrote to CMS last year that the surveys could impact opioid prescribing. The senators cited news reports of doctors in South Carolina admitting to prescribing more opioids in response to patient survey scores. “One hospital with low satisfaction scores even went so far as to offer Vicodin ‘goody bags’ to patients discharged from its emergency room in an effort to improve its scores,” the letter from the senators reads.

Emergency doctors face other challenges. For instance, opioid addicts will sometimes injure themselves just to get access to a small amount of painkillers, said Kolodny. It can be hard to tell whether the patient is actually hurt or an opioid addict, said St. Peter, who is also vice president of medical affairs for Pacira Pharmaceuticals, which markets a non-opioid painkiller for surgeries. He said that state databases that log prescriptions could help. For instance, a patient could get 90 Oxycontins from a primary doctor and arrive in the emergency room asking for painkillers a few days later. “That is a red flag,” he said.

Some emergency room doctors are starting to incorporate addiction treatment into their practice. For instance, a recent clinical trial involved 329 opioid addicts treated in the emergency room at a teaching hospital from 2009-13. Doctors assigned 215 of the patients to counseling or an intervention group, and the rest prescribed buprenorphine which helps treat opioid addiction.The group that got buprenorphine was more likely to reduce opioid use than the others, according to the study published last week in the Journal of the American Medical Association.

Copy Service Fee Regulations Effective July 1

The Office of Administrative Law (OAL) has approved the Division of Workers’ Compensation’s (DWC) final version of the Copy Service Fee Schedule. The effective date of the regulations is July 1, 2015.

“The new copy service fee schedule, which was mandated by SB 863, is a flat $180 fee for a set of records from a single custodian. By reducing the items and services that can be separately billed, we expect fewer disputes and prompter payments. If there are disagreements about a copy service bill, the disputes can now be handled through Independent Bill Review instead of the more time consuming and costly lien process,” said DWC Administrative Director Destie Overpeck.

The Copy Service Fee Schedule regulations include the following:

1) Instead of a per-page fee and itemized fees for subpoena preparation, mileage, and other related fees, a flat fee of $180 covers records of 500 pages and under and includes mileage, postage, delivery, phone calls, page numbering, witness fees, release of information fees, and subpoena preparation.
2) Separate charges are allocated for cancellations, certificates of no record, for records obtained from EDD and WCIRB, and for additional sets for records.
3) For copies above 500 pages, an additional 10 cents a page is allowed.
4) Bills for copy services must include provider tax ID numbers, professional photocopier numbers, and claim numbers and may include newly-created billing codes.
5) DWC fees for transcripts will no longer be estimated. It will cost $100 to order a transcript of 33 pages and under; transcripts over 33 pages will cost an additional $3 a page. DWC fees for Public Records Act requests requiring staff research will be charged at $85 an hour instead of $40.
6) DWC can dispose of paper adjudication documents after 20 years.

Although the Fee Regulations become effective on July 1, claim administrators should be aware that photocopiers are already regulated by statute in California. A “professional photocopier” is defined by section 22450 of the Business and Professions Code. This code requires that a professional photocopier shall be registered by the county clerk of the county in which he or she resides or has his or her principal place of business, and in which he or she maintains a branch office. A certificate of registration shall be accompanied by a bond of five thousand dollars ($5,000) which is executed by a corporate surety qualified to do business in this state and conditioned upon compliance with the provisions of this chapter and all laws governing the transmittal of confidential documentary information. The county clerk shall maintain a register of professional photocopiers, assign a number to each professional photocopier, and issue an identification card to each one. Additional cards for employees of professional photocopiers shall be issued. A professional photocopier shall be responsible at all times for maintaining the integrity and confidentiality of information obtained under the applicable codes in the transmittal or distribution of records to the authorized persons or entities. At least one person involved in the management of a professional photocopier shall be required to hold a current commission from the Secretary of State as a notary public in California.

All records transmitted or distributed by a professional photocopier shall be accompanied by a certificate containing the name, address, and registration number and county of registration of the professional photocopier as well as other mandated information specified in Business and Professions code 22462. A failure to comply with the professional photocopier requirements shall be punishable as a misdemeanor. It would be advisable for claim administrators to verify that all photocopied records comply with these provisions.

The text of the copy service fee regulations can be found on the DWC website..

Court Reviews Evidence Required in Restitution Hearing

While confined in state prison, Gray Bond Gracy punched nurse Andrew Jones in the face multiple times.juries prevented him from returning to work. Jones’s injuries included a left eye contusion, blurry vision, nausea, lumbar strain, post-traumatic anxiety, an adjustment disorder, and situational stress. The Victims Compensation and Government Claims Board (Gov. Code, § 13950 et seq.) awarded Jones $28,787.90 for lost overtime pay, which was not covered by workers compensation insurance.

Gracy pleaded no contest to an assault on Andrew Jones by means of force likely to produce great bodily injury. (Pen. Code, § 245, subd. (a)(4).) He entered his plea pursuant to an agreement which provided he would receive a low-term, two-year sentence and be required to pay restitution to the Victims Compensation and Government Claims Board. Thus, the court ordered him to pay restitution of $28,787.90 for lost overtime wages. Gracy appealed the restitution order and the Court of Appeal affirmed in the unpublished case of People v Gracy.

Gracy contended on appeal that the trial court abused its discretion in ordering him to pay the victim $28,787.90 as restitution. His contention was erroneously based on the purported duty of the prosecution to authenticate by live testimony the underpinnings of the claim.

During the restitution proceeding, the prosecutor provided the court with a copy of an employment verification form which showed that (1) Jones had worked for his employer from September 23, 1996, through April 18, 2013; and (2) before April 18, Jones had worked an average of 31.19 overtime hours per month, at a rate of $61.17 per hour (approximately $1,907 of overtime wages per month). The employer did not complete the blank space in the verification form section which reads as follows: “Employee would have worked an avg. of __ weekly overtime hours if the incident had not occurred.” The Board paid Jones $28,787.90 of overtime wages, for a period of approximately 15 months based upon his average monthly overtime wages prior to the incident. Gracy offered no evidence.

While the prosecution does bear the burden of proof to establish the loss and its relationship to the crime, this burden is met by submission of Board’s findings and orders. “If, as a result of the defendant’s conduct, the Restitution Fund has provided assistance to or on behalf of victim,” pursuant to section 13950 of the Government Code, “the amount of assistance provided shall be presumed to be a direct result of the defendant’s criminal conduct and shall be included in the amount of the restitution ordered.”

The standard of proof at a restitution hearing is by a preponderance of the evidence, not proof beyond a reasonable doubt. When there is a factual and rational basis for the amount of restitution ordered by the trial court, no abuse of discretion will be found by the reviewing court.

Here the prosecution made a prima facie showing of Jones’s loss by presenting documentary evidence that before the assault he worked an average of 31.19 hours in overtime each month, payable at the hourly rate of $61.17. It was reasonable to assume that Jones would have continued to work an average of 31.19 overtime hours per month had he not suffered injuries as a result of appellant’s assault, payable at the same rate he received before the assault. A prima facie case having been made, appellant was free to produce contrary evidence. He did not do so. The court did not abuse its discretion in ordering appellant to pay the Board the sum it paid to Jones.

Uber Sued by Injured Driver for Comp Benefits

A San Francisco janitor who had his face slashed by a passenger while working a nightshift as an UberX driver has filed a lawsuit seeking workers compensation insurance coverage from Uber Technologies, the ride hailing platform that classifies its drivers as independent contractors. The lawsuit, which was filed by Abdo Ghazi in San Francisco Superior Court on April 28, is seeking class action status as well as an injunction, damages and penalties against Uber.

According to the report in Biz Journals, it is the latest in a line of similar lawsuits with potentially far reaching implications for the on-demand economy that have been filed against Uber and other new tech platforms insisting that the workers providing the actual services they advertise be treated as employees. “Uber’s misclassification of drivers as independent contractors gave it an unfair advantage over competing transportation companies, harmed Uber drivers, and violated state law,” the suit claims. Even short of getting employment status, Ghazi’s suit demands that he be given workers compensation benefits, something that is allowed for and in some cases mandated even when workers are not considered employees, as is the case for taxi drivers in California.

San Francisco taxi officials say workers’ compensation coverage costs nearly $5,000 per cab a year, and they have long complained that it is unfair that taxi companies must provide drivers with workers compensation coverage while there is no similar requirement for drivers for Uber and similar on-demand platforms like Lyft and Sidecar, all of which are regulated by the state Public Utilities Commission.

Ghazi, 56, suffered a broken nose and four puncture wounds to his nose and mouth when he was attacked without provocation in the Richmond District by a male passenger shortly after midnight on Nov. 23, according to his complaint. David Lin, 26, fled after attacking Ghazi and was later taken into custody after attempting to break into someone’s house, a police spokesman said. He has been charged with one count of assault with force likely to cause great bodily injury, one count of battery with serious bodily injury, and one count of false imprisonment and has entered a plea of not guilty. Ghazi’s attacker was allegedly one of three people, including two men and woman, who originally got into Ghazi’s car at about midnight, said Conor Granahan, one of Ghazi’s attorneys. Ghazi was driving his Toyota Sienna and getting ride referrals through Uber’s UberX service, which enables people using a smartphone application to drive for hire using their own vehicles.

After dropping off one man and the woman, Ghazi was taking his remaining passenger toward Clement Street and 18th Avenue when the man suddenly leaped into the front seat and started punching Ghazi without warning, repeatedly striking Ghazi’s face while pulling on his seatbelt so he could not escape, Granahan said. Ghazi’s lip and chin were punctured by something sharp during the attack and he was taken to a local hospital where he was stitched up, and he still has “swelling and other issues with his mouth” as well as post-traumatic stress disorder, according to Granahan. He will need subsequent medical care, his suit states.

The result was that Ghazi, a resident of the Tenderloin, was off work for nearly two months from both Uber and also from his day job as a custodian at a downtown building, though he has since returned to both positions, Granahan said. Ghazi previously worked as a taxi driver at night, but when his earnings plummeted as a result of Uber’s impact on the market, he switched in June 2014 to the Uber platform, his complaint states.

Alec Segarich, another of Ghazi’s lawyers, who specializes in employment law, said he was aware of other lawsuits like Ghazi’s that are seeking employee status and have been filed against other tech-enabled companies which claim they are simply a communication platform to connect customers with independent contractors providing services ranging from house cleaning to grocery delivery. Other San Francisco firms named as defendants in such cases include Caviar (owned by payments provider Square), Homejoy, Instacart, Lyft and Postmates.”Our legal theory is that not providing workers compensation and misclassifying workers is an unfair business practice,” Segarich said.

“A lot of companies are trying to get out of pretty basic employment rights that have been around for a century. We think that just because you have an app it doesn’t change the employer-employee relationship, and that’s a lot of what this lawsuit is about.”

50% of Patients Give Uninformed Consent

Over half of people receiving medical scans such as X-rays do not know if they are exposed to radiation and many have unanswered questions even as they are waiting to undergo the test. Previous studies have shown that when patients have more information and can share in the decision-making process, they have less anxiety and more satisfaction with their treatment, the study authors write in the Journal of the American College of Radiology.

Dr. Andrew Rosenkrantz, lead author, told Reuters Health that while the United States performs a high volume of medical scans, many patients are not informed about what the tests entail. “We did this study seeking to gain insights into just how well patients understood their own tests that they were about to undergo,” Rosenkrantz, an associate professor of Radiology at NYU Langone Medical Center in New York City, said in an email.

Reuters reports that the study team recruited 176 patients who were waiting to have medical imaging scans, including CT and nuclear medicine scans, which involve radiation, and MRI and ultrasounds, which do not. The participants completed surveys asking about their knowledge regarding their procedures, and what the tests were for. They also reported on whether their doctor had explained the exam, how well it was explained and whether they still had unanswered questions. The researchers found that only about 46 percent of people correctly identified whether the test they were about to undergo employed radiation. Among people who would be drinking a radioactive contrast agent for their test, just over half knew it, while among those who would be getting the contrast agent by injection, just over 70 percent knew it.

Patients had the greatest understanding of CT scans, a powerful type of X-ray that shows cross-sections of the body. Patients reported the least understanding of nuclear medicine, in which the radioactive liquid contrast agents are used to enhance the image. About 78 percent of participants said their doctor explained the exam in advance and 72 percent were satisfied with the explanation. However, nearly one in five still had unanswered questions while awaiting the test.

For each kind of exam, those who had not had the test before had less understanding of it. One in five patients had used the Internet to learn about the exam, while the same proportion consulted friends and family. In addition, over half of patients said they would be interested in discussing the exam with a radiologist in advance.

Although the benefits of medical testing generally outweigh the risks, being exposed to radiation can increase a person’s risk of getting cancer later in life, according the Centers for Disease Control and Prevention. Dr. Michael Zwank, a physician at Regions Hospital in Saint Paul, Minnesota, who studies physician-patient communication, said patients should be more aware of the risks of these exams. “It is concerning that there is a big group of patients that seem to not have the awareness of radiation exposure that they are or are not experiencing with this imaging,” Zwank, who was not involved in the study, said in an email.

Rosenkrantz noted that the results may be skewed, since people who knew the answers to the survey questions may have been more likely to complete the survey. For this reason, the study results may show a higher level of awareness than is actually true for most people, he pointed out.

“Patients should also feel comfortable asking about logistics of the exam, ranging from what exam is being performed, which body part is being evaluated, the reason for the exam,” Rosenkrantz said. Zwank added that he encourages all patients to ask their doctors: “1. Is the test necessary? 2. What are the risks? 3. Are there alternatives?”

Reserving a Lifetime Award is Getting More Complicated

Traditionally, claim administrators project the cost of a lifetime award using statistical actuarial tables that predict life expectancy based upon historical data. The settlement value of a workers compensation claim also considers the expected lifetime cost of the claim. But now, researchers say it may be possible to slow and even reverse aging by keeping DNA more stably packed together in our cells. Perhaps evaluating the cost of settlement value of a claim is getting far more complicated than just using an actuarial table.

In a breakthrough discovery, scientists report that they have found the key to keeping cells young. In a study published Thursday in Science, and reported by Time Magazine, an international team, led by Juan Carlos Izpisua Belmonte at the Salk Institute, studied the gene responsible for an accelerated aging disease known as Werner syndrome, or adult progeria, in which patients show signs of osteoporosis, grey hair and heart disease in very early adulthood.

These patients are deficient in a gene responsible for copying DNA, repairing any mistakes in that replication process, and for keeping track of telomeres, the fragments of DNA at the ends of chromosomes that are like a genetic clock dictating the cell’s life span. Belmonte – together with scientists at the University Catolica San Antonio Murcia and the Institute of Biophysics at the Chinese Academy of Sciences – wanted to understand how the mutated gene triggered aging in cells. So they took embryonic stem cells, which can develop into all of the cells of the human body, and removed this gene. They then watched as the cells aged prematurely, and found that the reason they became older so quickly had to do with how their DNA was packaged.

In order to function properly, DNA is tightly twisted and wound into chromosomes that resemble a rope in the nucleus of cells. Only when the cell is ready to divide does the DNA unwrap itself, and even then, only in small segments at a time. In patients with Werner syndrome, the chromosomes are slightly messier, more loosely stuffed into the nuclei, and that leads to instability that pushes the cell to age more quickly. Belmonte discovered that the Werner gene regulates this chromosome stability. When he allowed the embryonic stem cells that were missing this gene to grow into cells that go on to become bone, muscle and more, he saw that these cells aged more quickly. “It’s clear that when you have alterations in [chromosome stability], the process of aging goes so quickly and so fast that it’s tempting to say, yes, this is the key process for driving aging,” says Belmonte.

Even more exciting, when he analyzed a population of stem cells taken from the dental pulp of both younger and older people, he found that the older individuals, aged 58 to 72 years, had fewer genetic markers for the chromosome instability while the younger people aged seven to 26 years showed higher levels of these indicators.

“What this study means is that this protein does not only work in a particular genetic disease, it works in all humans,” says Belmonte. “This mechanism is general for aging process.” Before it can be considered as the Fountain of Youth, however, Belmonte says new and better techniques need to be developed that can more specifically and safely alter the Werner gene in people, not just a culture dish of human cells. He also stresses that there may be other processes contributing to aging, and it’s not clear yet how important chromosome stability is compared to those factors. But, he says. “having technologies like this will allow us to determine how important each of these parameters are for aging.” And if the findings hold up, they could be first step toward finding a way to help cells, and eventually people, live longer.

Closer to home, Stanford University seems to agree with this science. Its website proclaims “”Now we have found a way to lengthen human telomeres by as much as 1,000 nucleotides, turning back the internal clock in these cells by the equivalent of many years of human life,” said Helen Blau, PhD, professor of microbiology and immunology at Stanford and director of the university’s Baxter Laboratory for Stem Cell Biology. “This new approach paves the way toward preventing or treating diseases of aging,” said Blau. “There are also highly debilitating genetic diseases associated with telomere shortening that could benefit from such a potential treatment.”