Workers’ Comp Reforms Cut Costs

Workers’ compensation reforms enacted in 2013 have reduced costs to business by 14 percent, the incoming president and CEO of the Independent Insurance Agents of Oklahoma said today.

Denise Johnson, writing in a letter, said, “It is working! In the spring of 2013, the Oklahoma Legislature passed the most comprehensive and progressive workers’ compensation reform legislation in the past 30 years. Following the lead of many other states, Oklahoma adopted SB 1062, which has been projected to catapult our workers’ compensation system from the worst in the country to the best by minimizing conflict between labor and management. This new system has led to an overall cost to business decrease of as much as 14%. The numbers are staggering:

1. Since February 1, 2014, Form 2 filings are down 30% (total 12,492) and Form 3 filings are down 75% (total 963).
2. There have been 649 pre-trial hearings. Forty percent of claims have issues that were settled by the participating parties. Twenty percent of claimants already had trial dates set and 40% have been reset for Status Conference.
3. Troy Wilson (a member of three-member Workers’ Compensation Commission) stated in the Enid News that under the former system, rates were 150% higher nationwide. If the rates are lowered to the national average, Oklahoma employers would save $330 million; lowering rates to the regional average would save employers $450 million. What a boost to our economy!

With the introduction of a new system comes challenges which the WCC has not been immune to; however, the bottom line is that the new “administrative” system is working since the Oklahoma Supreme Court found the new law to be constitutional. As the WCC continues to grow there will be a need for additional employees and resources as it continues to save Oklahoma businesses millions of dollars. The number of employees assigned to the Court of Existing Claims will gradually be reduced as caseloads dwindle with elimination of the entire department projected for 2020.  Under the new administrative system, we are seeing less contentiousness and a reduction of legal red tape. Most issues can be handled through mediation without the long trials and extreme settlements that we have seen in the antiquated system of the past. Oklahoma businesses and their employees are in a better place because of SB 1062. We are already seeing it!