What Employers Choose When They Choose Sedgwick

April 29, 2025 5 min read

By: the daisyNews Team

What Employers Choose When They Choose Sedgwick

When California employers select Sedgwick Claims Management Services, Inc. to manage their workers’ compensation claims, they choose a Third-Party Administrator (TPA) with a well-documented pattern of non-compliance with California law and regulations.

As daisyBill’s reporting and data have shown, Sedgwick consistently:

• Underpays doctors by failing to apply mandatory fee schedule updates.
• Violates electronic billing regulations by failing to respond electronically to electronic bills.
• Denies doctors’ appeals by improperly labeling legitimate Second Review appeals as “duplicate” submissions.
• Delays reimbursements by creating unnecessary paperwork and administrative hurdles.
• Obstructs access to care by denying a significant percentage of treatment requests.

Sedgwick’s pattern of non-compliance is undeniable—actual data, doctors’ experiences, and over 190,000 Audit Complaints extensively document it.

California employers who choose Sedgwick are effectively endorsing business practices that punish the doctors who treat their injured workers with administrative friction and underpayments.

If Sedgwick treats doctors this poorly, employers should seriously question how Sedgwick treats injured employees.

Employers, protect your workforce. Protect your business. Reconsider Sedgwick.

What Are Employers Really Paying For?

At the bottom of this article we list some of the employers who use Sedgwick to manage their injured workers’ claims.

On behalf of these employers, Sedgwick failed to reimburse doctors for treating injured workers at the amount owed per California’s workers’ comp 2025 fee schedule update. These California employers should be concerned about Sedgwick’s failure to properly reimburse doctors who treated their injured workers.

When TPAs mistreat doctors through systematic underpayment and administrative abuse, many of those doctors choose to stop treating injured workers altogether. The result: your employees have fewer treatment options, face delays in recovery, and experience worse outcomes.

How Sedgwick Undermines Access to Care

Sedgwick’s business model doesn’t prioritize care—arguably, it prioritizes profits.

Sedgwick creates obstacles to treatment, proudly promoting that Sedgwick did not approve 54% of treatment requests that doctors submitted (before daisyNews called them out).
Sedgwick routinely skirts basic legal obligations, like responding electronically to doctors’ electronic bills. In direct violation of state law, Sedgwick creates enormous administrative burdens for practices.
Sedgwick frequently fails to pay doctors correctly. As we reported, the TPA regularly fails to honor fee schedule increases—and that's just one way Sedgwick stiffs doctors.
When doctors file formal appeals for correct payment, Sedgwick often denies them as “duplicate” submissions—a technical "error" Sedgwick has been making at scale for years.

In short, Sedgwick makes it administratively exhausting and less financially tenable for doctors to treat injured workers, the ultimate victims: your employees.

Employers on this list, we encourage you to consider what your premiums pay for (besides private equity profits).

Employer	Workers’ Comp Insurance Carrier	Carrier Type (Insurer or Self-Insured Employer)
ABM Industries, Inc.	ABM Industries, Inc.	Self-Insured Employer
Advantage Solutions	Hartford Accident and Indemnity Company	Insurer
Adventist Health System	AHGL - Adventist Health Glendale	Self-Insured Employer
Amazon	LM Insurance Corporation	Insurer
Anheuser-Busch Companies, LLC	ACE American Insurance Company	Insurer
Archdiocese of Los Angeles	Archdiocese of Los Angeles	Self-Insured Employer
Argo Retail and Grocery Program	Argonaut Insurance Company	Insurer
AT&T Services, Inc.	Old Republic Insurance Company	Insurer
Avelo Airlines, Inc.	Starr Specialty Insurance Company	Insurer
Bakersfield ARC, Inc.	Bakersfield ARC, Inc.	Self-Insured Employer
Bakor Investments Ventura, Inc.	Falls Lake Fire and Casualty Company	Insurer
Bank of America	XL Insurance America, Inc.	Insurer
Bloomingdale's	Macy's Corporate Services, Inc.	Self-Insured Employer
Cal-South Hampton	Travelers Property Casualty Company of America	Insurer
City of Ridgecrest	City of Ridgecrest	Self-Insured Employer
Compass Group, Inc.	AIU Insurance Company	Insurer
County of Ventura	County of Ventura	Self-Insured Employer
CVS Pharmacy, Inc.	New Hampshire Insurance Company	Insurer
DeskMakers	Arch Insurance Company	Insurer
DFA Dairy Brands Fluid	AIU Insurance Company	Insurer
Dollar General Corporation	Dollar General Corporation	Self-Insured Employer
Elite Logistics	Clear Springs Property and Casualty Company	Insurer
Enterprise Holdings, Inc.	Travelers Property Casualty Company of America	Insurer
Evergreen Pharmaceutical of California	Indemnity Insurance Company of North America	Insurer
Express Services, Inc.	AIU Insurance Company	Insurer
Farmers Group, Inc.	Indemnity Insurance Company of North America	Insurer
Frito Lay	Indemnity Insurance Company of North America	Insurer
GE Appliances	Old Republic Insurance Company	Insurer
General Motors Corporation	General Motors Corporation	Self-Insured Employer
Glendale Memorial Hospital and Health Center	Glendale Memorial Hospital and Health Center	Self-Insured Employer
Great Built Construction, Inc.	Falls Lake Fire and Casualty Company	Insurer
Hertz	AIU Insurance Company	Insurer
High Desert Gateway	LM Insurance Corporation	Insurer
Hilton Los Angeles/Universal City	Safety National Casualty Corporation	Insurer
Hobby Lobby Stores, Inc.	Indemnity Insurance Company of North America	Insurer
Insperity Services, L.P.	ACE American Insurance Company	Insurer
Insperity Services, L.P.	Indemnity Insurance Company of North America	Insurer
JB Wholesale Roofing & Building	Everest National Insurance	Insurer
JC Penney	AIU Insurance Company	Insurer
JetSuite, Inc.	Starr Specialty Insurance Company	Insurer
Kaiser Permanente	Southern California Permanente Medical Group	Self-Insured Employer
LA County Office of Education	LA County Office of Education	Self-Insured Employer
Lee's Maintenance Service Inc	North Pointe Insurance Company	Insurer
Long Drug Stores California, LLC	ACE American Insurance Company	Insurer
Los Angeles Unified School District	Los Angeles Unified School District	Self-Insured Employer
Lowe's	Lowe's Home Center, Inc.	Self-Insured Employer
M.S. Aerospace, Inc.	Starr Indemnity & Liability Co	Insurer
Macy's	Macy's Corporate Services, Inc.	Self-Insured Employer
Maersk Logistics & Services USA Inc.	ACE American Insurance Company	Insurer
McKesson Corporation	Old Republic Insurance Company	Insurer
MM Auto Group, Inc.	Falls Lake Fire and Casualty Company	Insurer
Montebello USD	Montebello USD	Self-Insured Employer
N N Farms, Inc.	StarStone National Insurance Company	Insurer
New Albertson's Inc	New Albertson's Inc	Self-Insured Employer
Newbury Park Tree Service	NOVA Casualty Company	Insurer
Northridge Hospital Medical Center	Northridge Hospital Medical Center	Self-Insured Employer
Northrup Gruman Corporation	AIU Insurance Company	Insurer
Option One Congregate Living Facility	Accredited Surety and Casualty Company, Inc.	Insurer
Pacific Bell Telephone Company	Old Republic Insurance Company	Insurer
Pepsi-Cola Metropolitan Bottling	ACE American Insurance Company	Insurer
Porters LA LLC	Clear Spring Property and Casualty Company	Insurer
Precision Castparts Corp.	ACE American Insurance Company	Insurer
Public Storage	Starr Specialty Insurance Company	Insurer
Restaurant Franchise Captive Program	Arch Insurance Company	Insurer
Ross Stores	Arch Indemnity Insurance Company	Insurer
RVC Valley, Inc	Clear Spring Property and Casualty Company	Insurer
Starr Aviation Agency, Inc.	Starr Specialty Insurance Company	Insurer
Target Corporation	Target Corporation	Self-Insured Employer
TCI Transportation Services, Inc.	New Hampshire Insurance Company	Insurer
The Anschutz Corporation	Starr Specialty Insurance Company	Insurer
The Boeing Company	ACE American Insurance Company	Insurer
The Kroger Co.	The Kroger Co.	Self-Insured Employer
The Parking Spot	ACE American Insurance Company	Insurer
Trader Joe's Company	Indemnity Insurance Company of North America	Insurer
United Cerebral Palsy of Los Angeles	United Cerebral Palsy of Los Angeles	Self-Insured Employer
Vons Companies Inc	Vons Companies Inc	Self-Insured Employer
Wells Fargo	Old Republic Insurance Company	Insurer
Westcoast Warehousing, LLC	Falls Lake Fire and Casualty Company	Insurer
Yellow Corporation	Old Republic Insurance Company	Insurer

We can’t make Sedgwick behave. But we can make it easier for providers to manage their shenanigans. Click below to see how.

BILL EASIER

0 Reader Comments

There are no comments for this article. Be the first to comment!

How did you like the article ?

DaisyBill provides content as an insightful service to its readers and clients. It does not offer legal advice and cannot guarantee the accuracy or suitability of its content for a particular purpose.