UFC announces accident-insurance coverage for all 350 contracted fighters

[e-thug]

Source:http://mmajunkie.com/news/23536/ufc-announces-accident-insurance-coverage-for-all-350-contracted-fighters.mma

In a room packed with hundreds of mixed martial arts' top athletes, the long-awaited announcement was met mostly with relief.

Officials from Zuffa LLC, the UFC and Strikeforce's parent company, today announced all of its contracted fighters now get accident-insurance coverage. The company's fighters learned of the additional coverage today at the four-day "fighter summit" in Las Vegas.

That means training injuries – which are costly and not previously covered by their independent-contractor agreements – will be picked up by the organization.

"Our athletes are some of the very best in the world, and we've committed significant financial resources to provide them with insurance that complements the gold standard we have set for event-related coverage," UFC Chairman and CEO Lorenzo Fertitta stated in today's announcement. "We’re pleased to provide coverage that enables our athletes to seek and receive treatment for injuries sustained while preparing for bouts."

Officials didn't state how much the additional coverage for the approximately 350 fighters will cost the company, but a media call is planned for this afternoon.

Sticking with requirements by the regulatory state-athletic commissions, Zuffa LLC previously covered all injuries sustained during fight night. But pre-fight camps, which often produce a myriad of injuries, weren't covered. That often left fighters, who were banking on needed paydays, unable to compete, unpaid, and likely saddled with thousands of dollars of expenses.

After all, getting any type of year-round healthcare insurance is all but impossible for a professional fighter. (In fact, many fighters have trade/sponsorships deals with their local physicians to get basic services.)

The UFC's new policy adds 24-hour worldwide medical-life insurance and dental coverage, as well as emergency medical evacuation. Zuffa will pay 100 percent of all premiums to its partner, Houston Casualty, while employing a fulltime claims processor in house.

"As this sport continues to grow, we have been working hard to secure additional insurance coverage so that our athletes can perform at the highest levels," UFC president Dana White stated. "We're proud to give our athletes access to this type of insurance."

Awesome step for Zuffa.

[mls]

In an unprecedented move in Combat Sports history, Zuffa released details of a health plan for all contracted fighters via Yahoo Sports mouthpiece Kevin Iole. The plan is expected to cover all pre-fight injuries, which would include those that occurred in and outside of training. In the past, it's been understood that as fighters are contractors and not actually employed by Zuffa, they were not eligible for any comprehensive coverage. Zuffa has always covered any injuries that occurred while in the cage, which would be considered injuries while on a job.

The initial details from Kevin Iole seem to indicate that this would allow fighters the ability to not have to worry about racking up massive medical costs. Here's the details..

But the worst-case scenario for a mixed martial arts fighter is to suffer an injury days before a fight that requires him or her to pull out of a scheduled bout. That means no paycheck, as well as a stack of medical bills, because the event insurance only covered injuries suffered during a match.

As independent contractors, the fighters are only paid if they compete and, until now, the UFC has not been responsible for paying for out-of-competition injuries. Zuffa LLC, the company that owns both UFC and Strikeforce, is taking steps to erase that problem. Lorenzo Fertitta, the UFC’s chairman and chief executive officer, said the company plans to offer accident insurance that will cover approximately 350 athletes in the event of out-of-competition injury, effective June 1.

Zuffa will pay 100 percent of the premiums, Fertitta said, and will have a full-time employee who will coordinate the claims process. T

he insurance the fighters are being provided is separate and distinct from health care insurance many workers get through their employers, which pays for things like doctor’s visits, hospitalization and prescription drugs. Zuffa is not offering the fighters that type of coverage.

SB Nation's Luke Thomas has some more insight into this as well...

1. Do steps like these undercut need for a fighters' union? Typically the formation of a union is where guarantees between labor and management result in health care coverage. Is Zuffa undercutting the need for fighters to band together for mutual gain?

2. Will this have any effect on fighters pulling out of contests to take advantage of the insurance? Without healthcare coverage in the run-up to fights, fighters often carry injuries into the cage so they can be treated by the existing insurance coverage after the fight. Now that they're able to pull out of a fight and still receive care, will we see more withdrawals? The fighters still will not receive their purse money.

3. What are the general costs to Zuffa to launch this coverage?

4. Is it fair to say this amounts to a pay raise for UFC fighters? By cutting out what can often by huge medical expenses, UFC fighters are augmenting the reach of their purse money by not having to carry into future training camps for medical coverage.

5. What would determine "pre-fight"? In other words, are injuries covered the entire time fighters spend between fights or is there a more precise window of coverage that's anchored on fight time?

6. Is there any combat sports promoter who has ever gone this far in trying to provide healthcare coverage for fighters?

Luke will be on the conference call this afternoon regarding this story and will have more details as well. I'd suggest following him on twitter so you can get the details as they come in.

My thoughts to the questions that Luke presents after the jump...



1. In my opinion, this is definitely a proactive move by Zuffa to kill a Union before the fighters have made any attempt to organize. As Luke states, unions usually start because of concerns regarding health and work environment. By improving the quality of life, Zuffa is removing one of the most important factors for creating a union.

2. This definitely could create an scenario where fighters are more inclined to pull out of fights. Obviously, without details about how the coverage will work, this is all speculation. However, could we see fighters pull out of fights for the most minuscule of injuries? That could happen. But they still won't receive any pay so many will probably still show up on fight night.

3. This is one I can't answer. It's obviously that this will cut into general costs but it has to be one that they've factored into their yearly budget. Lorenzo Fertitta told Iole that this has been in the works for the past two years, so it's something they've accounted for and have recognized as a necessity.

4. I don't know if this will be used as a negotiation point by Zuffa when trying to keep contracts to a minimum. Fighter pay has generally increased every year and I don't see this as a way for the UFC to undercut them.

5. This is actually the biggest question and I'm happy that Luke presents it. Most fighters have three fights a year with most camps lasting eight weeks. Would this coverage only last for the 24 weeks leading up to fights or would it also cover the 38 weeks of non-training?

6. This is completely unprecedented. Good on Zuffa for recognizing a need for this and I can't think of any time an organization has made such a proactive attempt to help athletes.

Final thoughts? I think this is one of the best things to happen in Combat Sports history. If you can find any issue in this I don't want you reading my site cause you're just a naysayer for the sake of naysaying.

http://www.headkicklegend.com/2011/5/9/2162041/zuffa-to-offer-comprehensive-coverage-for-pre-fight-injury

[southpaw447]

Awesome. Very pivotal step for Zuffa.

[Jack]

Will read through this properly when I have a chance, but this is great news.

[Thaispider]

fantastic news.

[wafb]

Nice!! Edgar and Maynard already taking advantage of it. and Tito and his "injuries" will bankrupt the insurance company lol.

[Negative2]

Little late for Jardine's hospital bills.

[Lotus]

Little late for Jardine's hospital bills.

lmmfao

[Pliff]

Little late for Jardine's hospital bills.

http://forum.i3d.net/attachments/offtopic-english/943155262d1231353338-english-spam-thread-lol.jpg

[mls]

As previously reported, today was an unprecedented day for MMA as Zuffa announced that they would be offering comprehensive coverage for all injuries that occured both in and outside of training camp for all contracted fighters. I was unfortunately not on the conference call but my buddy Mike Fagan of Bloody Elbow was. Below are his notes of what this means for fighters:

Every fighter under contract with Zuffa is covered by the new policy. Covers fighters worldwide. A fighter does not need a scheduled fight to receive coverage.

The coverage includes $50,000 per fighter per year with premiums being paid for by Zuffa. No out-of-pocket expenses for fighters.
Lorenzo Fertitta refused to give a concrete number, but claimed that this is a "substantial" expense to the company.

Dana White and Fertitta both stated that this was something they've been working on since purchasing the company.

They thought they would announce the deal at Chuck's retirement, but it didn't work out. Started to look like a reality two or three months ago.

The policy covers all in-training and accidental injuries, but will not cover common cold, etc.

Zuffa general counsel Lawrence Epstein noted that they worked to get accidental coverage to avoid disputes between training and non-training injuries.

Feritta mentioned that they received a round of applause from fighters at the Strikeforce summit.
http://www.headkicklegend.com/

[Mervin]

Great news for the fighters, but I have a feeling that we'll see a lot more fight cancellations now. So strictly from a fan standpoint, I don't know if this is a good thing.

[Wise]

A much needed and great move by Zuffa.

[vikingpride]

Good stuff. And really seems pretty logical with the advancement of the sport.

[SimplyNate]

Why do I feel like there are going to be more injuries now? Less cautious in training now that they have a bit of a safety net.

[Wise]

Why do I feel like there are going to be more injuries now? Less cautious in training now that they have a bit of a safety net.

These guys are already going all out in training.

[SimplyNate]

These guys are already going all out in training.

I doubt it. Especially the lower level guys. I was just being cynical anyways lol.

[FullMetal]

People are still going to be motivated to fight with slight injuries because they won't get paid otherwise.

[JT42]

Really awesome news and its good to see Zuffa making an ethically-correct decision.

I could see more guys pulling out of fights with injuries but with the roster the UFC has now, they seriously need to start stacking cards a bit more since injuries are common. Rampage/Hamill was a weak co-main event and now we have a weak main event.

If the UFC stacked cards more then we wouldnt end up with Rashad/Thiago Silva and Rampage/Hamill as main events

[wafb]

It won't be long before Chael gets his testosterone replacement therapy covered by insurance.

[FunkYou]

Good news for the fighters and the sport in general.

[randyspankstito]

Wow. Awesome news for the fighters, and I am very surprised. It must have cost a fortune.

I'm thinking maybe it cost 3 grand a month per fighter? Regular peoples insurance costs around 1500 a month, and his is probably at least twice as expensive, so at 3 grand each that's 36 grand per year for each fighter so 12 million a year of tax deductible expenses. A whole lot of loot, and that's a conservative estimate.

[Negative2]

Question about fighters cancelling due to injury; do the fighters need to provide a Dr's note stating the severity of the injury or does the UFC just take their word for it?

[wafb]

Question about fighters cancelling due to injury; do the fighters need to provide a Dr's note stating the severity of the injury or does the UFC just take their word for it?

At work you have to get a form filled by a doctor so the insurance company can process it. I would think this is the standard for every big company.:dontknow: