Can an employer pay all, or a portion of workers compensation claims directly?
The insurance company is the proper payee of all worker’s compensation claims. Agents, consultants, or insurers may not, without violating insurance statutes, advise employers to circumvent the worker’s compensation system. The Office of the Commissioner of Insurance, along with the Worker’s Compensation Division of the Department of Workforce Development, and the Wisconsin Compensation Rating Bureau, hold that consultants, agents, and insurance companies must not encourage, advise, or condone the direct payment by employers of any portion of medical and/or indemnity charges resulting from work injuries. All worker’s compensation injury claims must be reported to the insurance company. The Wisconsin insurance statutes prohibiting this practice include s. 626.11, Rate standards; s. 626.12, Rating methods; s. 626.25, Use of rates; and s. 628.34, Unfair marketing practices, Wis. Stats. OCI will pursue information about the direct payment of medical/indemnity expenses through its complaint
