New Reporting Requirements for Self-Insured Employer WC Programs

Keenan Briefings


New Reporting Requirements for Self-Insured Employer Workers' Compensation Programs

March 04, 2019

Recently, the Department of Industrial Relations, Office of Self-Insured Plans (OSIP) promulgated regulations that will change the reporting which is required of public employers that self-insure their workers’ compensation programs.OSIP’s purpose in making these changes is to obtain additional information regarding the administrative costs, expenditures, solvency, and performance of public self-insured employer workers’ compensation programs. These regulations are part of a multi-year process on the part of OSIP, public employers and other stakeholders.Throughout this process, Keenan has provided OSIP with detailed feedback, participating in pre-regulatory and regulatory meetings, providing detailed written comments and assisting several clients to participate in an OSIP reporting pilot project. Although these regulations have not yet been finalized, many self-insured employers have started to receive information about how these regulations will affect their plans.This Briefing will address the proposed regulatory changes and what Keenan is doing to ensure that their clients are able to comply with the new reporting requirements when they become final.

Once finalized, the proposed regulations will require self-insured public entities to file annual reports providing demographic data along with claims and financial data about their workers’ compensation programs.In the past, it has been time-consuming and difficult for OSIP to pull financial and demographic data regarding self-insured public employer plans from publicly available sources.The proposed regulations will shift this burden to public employers, through two new forms: Form P-1 for public employers with stand-alone worker’s compensation programs, and Form J-1 for programs administered through Joint Powers Authorities (JPAs).Form P-1 requires reporting of annual operating expenditures, employer demographics, and financial information.Most of this information will come from the employer’s human resources records as well as its certified, independently audited financial statement.Form J-1 requires similar data regarding workers compensation JPAs, including information about the membership of the JPA and the demographics of its member employers.

The proposed regulations will also modify the existing annual reports currently being filed by public employers (on Form AR-2) by requiring that they include aggregate claim data covering the most recent fiscal year, each of five preceding fiscal years, and all earlier years with reported claims. The Form AR-2 will require employers to report the number of claims, the amount of disability benefits paid, the amount of medical costs paid, the legal and loss adjustment expenses paid, as well as the estimated future liabilities.

Keenan currently assists its self-insured employer and self-insured JPA clients by completing the claims portion of the annual report and by providing support to employers completing the employer portion. As the proposed regulations further expand the information employers will be required to submit, Keenan will complete the Form AR-2. For its JPA clients, Keenan will provide the information in its possession necessary to complete forms P-1 and J-1, including the annual financial summary information required under Part. C and balance sheet, revenue and expense information required under Part D.


Keenan & Associates is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Clients are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the clients’ business activities.