Workers' Compensation Rates Rising While Payroll Costs Are Steady / Says Insurance Council Director

By Tipton, David | THE JOURNAL RECORD, November 14, 1987 | Go to article overview

Workers' Compensation Rates Rising While Payroll Costs Are Steady / Says Insurance Council Director


Tipton, David, THE JOURNAL RECORD


Oklahoma is in a situation where the cost of workers' compensation benefits has continuously risen while the payroll costs for employers have held relatively steady, according to Roy Wood, director of government, consumer and industry affairs for the National Council on Compensation Insurance.

In a meeting of a joint committee of the Oklahoma Legislature on workers' compensation rates this week, Wood provided the members with a graph which shows that wages for all payrolls in the state have increased about 36 percent from 1979 to 1986.

However, the cost of medical care in Oklahoma has increased about 82 percent in that same time period, while hospitalization costs have gone up approximately 88 percent.

Medical costs are one of several factors which the insurance council considers when it files a rate request.

Wood told the committee 37 percent of the cost of workers' compensation benefits paid goes for the employee's medical bills, while the remaining 63 percent covers indemnity - the employee's lost work time.

"The cost of benefits have outstripped the payroll," Wood said.

He emphasized that when the council files a rate request, it is not to provide insurers with a way to recoup losses for past years - though the amount of premiums paid in and losses paid out are an important factor in determining what a rate request should be - but a means by which insurers can provide workers' compensation coverage at rates based on anticipated future trends.

The last rate increase granted by the Oklahoma Property and Casualty Board was 41.9 percent in 1985, but the Oklahoma Supreme Court ordered the rates rolled back to the previous 25.9 percent. Still, insurers in the state are allowed consent to rate, which essentially means employers having a difficult time obtaining workers' compensation insurance agreed to pay an insurer a negotiated rate for the insurance - oftentimes much higher than the 25.9 percent rate.

The insurance council has filed a 33.8 percent average increase in workers' compensation insurance in Oklahoma, but in the legislative meeting, council officials estimated that if consent to rate were taken into account and if the Oklahoma Insurance Fund offers workers' compensation at about the same rate, the rate increase would only cost workers in the state $18 million - compared to a $120 million cost if the rate increase were considered above just the official 25.9 percent rate.

Asked if employers should be wary of a significant rate increase proposal when the council evaluates Oklahoma's workers' compensation system again in the next two years, Wood replied:

"Well, no, because the request is based on past experience and what trends we expect in the future. If there is an indication of a need for a rate reduction, we will ask for that." . .

Bellmon Has `Nothing Definite' on Japanese Coming to Oklahoma Gov. Henry Bellmon said in a press conference Friday he had "nothing definite to announce" about any Japanese companies coming to Oklahoma.

Bellmon returned Wednesday from a reverse trade mission to Japan in which he and individuals from the private sector visited with representatives from various businesses.

In a teleconference news conference Monday, Bellmon stated a major Japanese firm had stated its intentions of setting up operations in Oklahoma and would make a formal announcement in the near future. When questioned about his statements Friday, Bellmon said:

"I have nothing definite to announce. There were several Japanese companies interested in Oklahoma but the problem is that they will have to make arrangements to set up operations in the area of the state where they want to locate, and all these things take time."

In addition, he said he expects any wrongdoers to be prosecuted for activities at Southeastern Oklahoma State University that Bellmon labeled as being ``clearly outside legal bounds.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Workers' Compensation Rates Rising While Payroll Costs Are Steady / Says Insurance Council Director
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.