Category Archives: rate decrease

And Then There Was One

In what may well be one of the last posts written about opt-out for workers’ comp, Joe Paduda today reports that Oklahoma is opting out of opt-out.

That leaves the Lone Star State as the only state that allows employers to “opt out” of the statutory system, but as Joe indicates, most Texas employers opt in.

There is a strange relationship in Texas between opting out and insurance premiums that runs counter to what many might think natural otherwise. Large employers opt out when the rates are low, and small employers opt out when the rates are high, a point I highlighted in the post, “Large Employers in Texas Opting Out of Work Comp.”

So as rates are decreasing in Oklahoma, according to Joe, employers there are opting out of opting out.

Maybe at last we are seeing the end of this extremist, turn-the-clock-back to the 19th century way of providing workers’ compensation to injured workers.

And amen to that.

 

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