The National Council on Compensation Insurance Inc. projects that workers' compensation costs will see double-digit decreases in Oklahoma after state lawmakers passed a bill to do away with the state's workers' compensation court system.
Oklahoma Senate President Pro Tem Brian Bingman and others who had advocated for a switch to an administrative workers' compensation system touted the loss cost reduction as a plus for businesses in the state.
“Workers' compensation costs are noted by employers of all sizes across the state as their top barrier to growth, which is why we passed comprehensive reform,” Bingman said in a statement. “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.”
Most insurers will use projections on loss costs from the advisory group NCCI to set rates for workers' compensation insurance employers. The National Council predicts overall loss costs will drop 14.6 percent beginning Jan. 1.
“Oklahoma continues to be a leader by proving to the country that conservative pro-business policies lead to economic growth and prosperity,” Oklahoma House Speaker T.W. Shannon said in a statement. “By replacing an archaic adversarial system with a modern administrative system, we have opened the doors for employers and employees to settle claims in a fair and affordable manner. Businesses will see a reduction in costs and injured employees remain protected.”