The Oklahoma Legislature's efforts to reform the state workers compensation system appears to be paying off.
An annual report most insurance carriers will use to develop workers comp rates for state employers is down 14.6 percent.
For manufacturers the decline was even greater - down 16.3 percent.
The lower rate would take effect Jan. 1, according to state Insurance Commissioner John Doak.
Over a period of time, such decreases will make Oklahoma more competitive, allow existing businesses to expand and attract new business to the state, Doak said.
The National Council on Compensation Insurance Inc., an advisory organization that studies the elements of workers compensation insurance costs, credited most of the decrease to the passage of Senate Bill 1062 this year.
That law was pushed by Senate President Pro Tem Brian Bingman, R-Sapulpa, and Speaker of the House T.W. Shannon, R-Lawton.
It changes the state workers compensation system from a judicial system to an administrative one. It also allows businesses to opt out of the workers compensation system as long as they provide equivalent benefits to injured workers.
The new system will begin hearing new claims Feb. 1. Other parts of the bill took effect in August.
Democrats who oppose the measure argued that it is unfair to injured workers because it will reduce their benefits.
But the lower rates were a reason for celebration for the new law's champions.
Workers compensation costs are noted by employers of all sizes across the state as their top barrier to growth, Bingman said.
"Lower rates mean more money for investment, expansion, wage increases and job creation for businesses here, and a more competitive economic climate for companies looking to expand and relocate to Oklahoma," Bingman said. "This dramatic reduction in rates shows the legislation is working and I believe is only the tip of the iceberg in savings Oklahoma businesses will see over the long-term."
The state Chamber of Commerce - long a champion of workers compensation reform - also was dancing over the news.
"Savings of more than 14 percent before the new system is fully operational shows what great things can happen when the business community engages in the political process and works with the governor, House and Senate to create an environment optimum for growth in Oklahoma," said Chamber President and CEO Fred Morgan.
But the advocates of SB 1062 shouldn't celebrate too hard.
The new law was 208 pages long and had more than 200 sections.
A legal challenge along the same lines that undermined the state's 2009 lawsuit reform measure seems likely.
The state Constitution requires that every law only deal with a single topic, a measure designed to prevent "logrolling," the legislative practice of combining measures that wouldn't stand on their own merits.
While all of the elements of SB 1062 dealt with workers compensation, the high court has been applying a strict reading to laws, so that anything accomplished in the new law may end up being undone.
Workers compensation reform has been the goal of Oklahoma business leaders for years. Now that they have the system they wanted and early evidence supports their claims that it will mean lower business costs in the state, we will wait to see if the measure will survive court challenge and, more important, if it will live up to its promise not to accomplish its goals at the costs of the working men and women of Oklahoma.
Original Print Headline: Workers comp costs headed down
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