DWC Administrative Director Announces 2015 Profile Audit Review and Full Compliance Audit Performance Standards By CA Dept of Industrial Relations Press Release - December 24, 2014
Labor Code §§129 and 129.5 require the Audit Unit of the Division of Workers’ Compensation (DWC) to conduct a profile audit review (PAR) for all adjusting locations of California workers’ compensation claims at least once every five years. Performance of the adjusting locations is measured in five areas of claims administration:
The payment of accrued and undisputed indemnity
The late first payment of temporary disability / first notice of salary continuation
The late first payment of permanent disability and death benefits
The late subsequent indemnity payments
The provision of notices with QME/AME advice.
The administrative director annually establishes profile audit review and full compliance audit (FCA) standards in accordance with Labor Code §§129(b)(1) and (2) and Title 8, California Code of Regulations §10107.1. The 2015 standards are based on the audit results of calendar years 2011 through 2013.
Performance standards for 2015
The PAR performance standard for audits conducted in 2015 is 1.53446. Audit subjects with PAR performance ratings of 1.53446 or lower will be required to pay any unpaid compensation, but no penalties will be assessed. If an audit subject’s PAR performance rating is 1.534467or higher, the audit will expand to a FCA, and an additional sample of indemnity claims will be audited.
The FCA performance standard for audits conducted in 2015 is 1.68525. Audit subjects with an FCA performance rating of 1.68525 or less will be required to pay any unpaid compensation and penalties will be assessed for all violations involving unpaid and late paid compensation. If an audit subject’s full compliance audit performance rating is 1.68526 or higher, an additional sample of denied claims as well as the expanded sample of indemnity claims will be audited. Penalties will be assessed for all violations as appropriate pursuant to 8CCR §§10111 through 10111.2.
More information on the performance standards that will be in use for the profile audit reviews and full compliance audits during calendar year 2014 is now posted on the DWC Audit UnitWeb page.
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California Department of Industrial Relations, P.O. Box 420603 · San Francisco, CA · 94142-0603 · www.dir.ca.gov
Adjuster / Examiner Claims Examiner Santa Ana Unified School District Santa Ana, CA