WV Agencies desperately seeking Worker Comp bids.

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WV Agencies desperately seeking Worker Comp bids.

Post by SamCogar on Tue May 17, 2011 8:25 am

IN January 2006, West Virginia began a three-year journey to privatize its workers compensation system. Under state management, the program charged uncompetitive rates, was riddled with fraud, and had run up a $3 billion unfunded liability.

The state walled off that debt, dedicated revenue sources to pay it off, and began transforming its workers comp agency into BrickStreet Mutual Insurance Co.

Within two years, overall workers comp rates fell by 27.5 percent, yet the fledgling company still made money. And BrickStreet, like other insurance companies, is going where the money is.

It's not insuring government agencies. In March, Greg Burton, president and CEO of BrickStreet, told the Senate Finance Committee that his company lost $30 million over a two-year period on its coverage of government agencies. For every $1 in premiums it received, BrickStreet paid $1.36 in benefits.

He announced that BrickStreet was dropping the state as a customer.

Now the state is seeking bids on covering government agencies in West Virginia.

http://www.dailymail.com/Opinion/Editorials/201105151428

Lord knows that state/county employees will not be held accountable ...... so I guess they will be raising the tax on a pack of cigarettes to $10 to pay for HIGH Workers Comp Premiums ...... iffen they can find an insurance carrier.


SamCogar

Number of posts : 6238
Location : Burnsville, WV
Registration date : 2007-12-28

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