By Joining NCCI Texas Opt Out Could Fade
Did Texas opt out of Its non-subscriber system? Texas has decided to join the Experience Rating System supplied by NCCI. According to a fellow WC blogger, Texas may also look to remove the opt-out provisions in the law for the construction industry. That is a major step in starting to remove the Texas opt out provision for employers.
One has to wonder if NCCI had an impact on or at least suggested the move to a full non-opt-out system in Texas. The Law of Large Numbers may not be a concern as The Lone Star State is such a large state. Then again, if a certain market segment opted out, then the law may be applicable.
One has to also ask – if TX decides to end its opt-out program for the construction industry, will Oklahoma follow suit in its opt-out program? This would have seemed far-fetched until the state decided to join NCCI’s rating system instead of their own.
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