Ohio Monopolistic Workers Comp System May Be Up For A Few Changes
Did Ohio Monopolistic BWC fail? I have posted on this one a few times in the past. As you can see from the last post, the people that suffer the most from wholesale and somewhat unfounded changes to a Workers Comp system are the premium payers.
Ohio’s state-run monopolistic system is not working that well. There have been so many cases of internal fraud and bad decisions in the last five years. The worst had to be the investment of premiums paid into gold coins.
North Dakota has experienced a huge amount of internal turmoil over the last few years. There were investigations and even arrests made on some of their employees. They ended up with a huge surplus that was likely based on improper claims denials.
Most of the states that were once monopolistic have failed and/or to a fully open market system. The states usually convert their monopolistic system to a private carrier, then to an open market system. These carriers usually lose a huge portion of their market share–such was the case in Nevada.
It is my prediction that all of the monopolistic state funds will convert to a private system in the future.
Update – Ohio’s BWC still provides all of the Buckeye State’s employers with Workers Compensation policies.
Why have monopolistic states been failing over the last few years? Workers Compensation insurance is based on a free-market system. Letting the government run the programs have resulted in horrendous results in some cases. Workers Comp cannot be administered like a government program.
Bottom Line – You cannot let governmental officials run the system. Their job is to monitor the Workers Comp system to make sure there is a level, legal, and fair playing field.
Also Read: Monopolistic Workers Comp States Examined Further
©J&L Risk Management Inc Copyright Notice
