OSIP Newsline
Newsline No. 01-12
March 28, 2012


Office of Self Insurance Plans (OSIP) launches audit web tools

Sacramento—The California Department of Industrial Relations’ (DIR) Office of Self Insurance Plans (OSIP) today launched new web tools for its audit unit, which will help self-insured employers and their third-party administrators understand OSIP’s duties and what to expect during an audit.

“The new OSIP audit website will create greater accountability, accuracy and transparency in the audit process, while dramatically improving the public’s understanding and the level of service OSIP provides to the public,” said DIR Director Christine Baker.

The new web pages include general information about OSIP’s audit unit functions, as well as helpful guides for employers and third party administrators. Among the features:

By law, OSIP’s audit unit must conduct claims audits every three years of all active self-insurers in California, and state regulations require a certain amount of money be set aside by the self-insured employer for claims. By auditing, OSIP can identify underreported reserves that aren’t sufficient to cover employers’ liability.

“For every dollar spent auditing, $114 of underreported reserves, risk and liability exposure is identified and corrected,” said OSIP Chief Jon Wroten. “This is money well spent for California’s employers, and a good investment for ensuring that the public’s interest is protected.”

The new web tools include specific performance data on such reserves. Also, the audit unit offers guidance to the public on specific audit and reserve related questions by email at OSIPAudit@dir.ca.gov.     

OSIP’s website can be accessed at http://www.dir.ca.gov/sip/sip.html. The audit unit’s web pages can be accessed directly at http://www.dir.ca.gov/sip/OSIP-AuditUnit.html.

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