Short answer: because they don’t want to obey the law and they get away with it.
First: some definitions:
Notice Of Compensation Payable: This document, commonly called an NCP, formally accepts a PA Workers’ Compensation claim. It is open ended; once a NCP is issued, the Work Comp insurance carrier MUST pay Work Comp benefits and medical benefits until:
A) the injured worker agrees in writing to stop receiving WC, OR,
B) The injured worker returns to work and the WC Insurance Carrier issues an Affidavit of Return to Work; OR,
C) WC Judge orders that WC be stopped.
Notice Of Temporary Compensation Payable: This accepts a Work Comp claim for 90 days. The Work Comp Insurance carrier can stop the temporary payment of Work Comp for any reason if they issue a Denial and a Notice Stopping Temporary Work Comp by issuing a Notice Stopping Temporary Compensation Payable and Denial within the 90 days and within 5 days of the last check. The claimant then has to file a Claim Petition requesting that a Work Comp Judge award benefits. This can take a year or more.
Medical Only Notice Of Compensation Payable: This document, commonly called an NTCP, is a tricky document that looks like an NCP but pays only for medical bills for injuries listed on the document filled out by the insurance adjuster. A Claim Petition must be filed by the injured worker within 3 years of the date of injury if the injured worker wants to be paid a weekly WC check.
It is easy to see that the Notice of Compensation Payable is a more powerful and important document than the Notice of Temporary Compensation Payable. The NCP is an open ended promise to pay WC indefinitely. The Notice of Temporary Compensation Payable binds the WC insurance carrier for a maximum of 90 days and it can be stopped for any reason.
Because of this, The Courts in Pennsylvania have said that the NTCP should be used ONLY when the facts surrounding the injury are unclear. The purpose of the NTCP in theory is to allow the WC insurance carrier to thoroughly review the details surrounding the injury if there is a question.
However, many WC insurance companies misuse the NTCP and use it in many or most WC cases even though they aren’t supposed to. Why? Because it gives the WC Insurance company more time to maneuver. The can use the NTCP as a club to force the claimant into a quick settlement by threatening a denial. It also gives them time to set up a quick IME (Employer’s Medical Exam) with a Doctor who is paid to say there is no injury, then deny the claim.
