Non-Subscriber or Opt Out Programs – Work Comp Doom?
The Non-Subscriber or Opt out programs could end Workers Comp? This year’s LRP Workers Comp Conference in Las Vegas was very informative. I was searching out any new technologies, services, or products in the Workers Comp arena.
The vendor area was surprisingly headed towards consolidation. Some of the services that were being added in by consolidation were very interesting. Most of the services and even the new combinations of services had all actually existed in Worker Comp in the past.
One area that was not necessarily new, but was heading towards a very rapid expansion was opt out or non-subscriber services for Workers Compensation. The one area that astounded me was the fact that Workers Comp is treated more like a benefit or investment than a cost of doing business.
One of the reasons I deviated from obtaining a CPCU and pursued a ChFC designation is that I had always considered insurance premiums as more of an investment than a cost. I wanted to understand more fully how insurance fits into the overall budget, not just as a necessary evil of doing business.
There was a section on the last day of the conference on non-subscriber services for Workers Comp. The main two panelists were from Hobby Lobby and Dollar General. I was surprised what the two employers were allowed to do with their Workers Comp programs – all in good way.
The two companies had a history of using a non-subscriber service in TX. The risk manager from Hobby Lobby had mentioned the fact that Oklahoma will likely approve non-subscriber services.
The cost savings between traditional WC and the non-subscriber services was astounding. I will post a story tomorrow or more of the intricacies of how the two companies administrated their programs.
I am traveling all day today and the info on the non-subscriber section is in my checked bag. One thing I wanted to point out is even though non-subscriber services have been in existence in Texas for quite some time, I think many more states than just Oklahoma will look into these services.
There is a report on non-subscriber services by two Workers Comp reporters coming out very soon. I will comment on it after it is published and I have had time to examine it.
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