Oklahoma Innovative Work Comp Alternative Works, New Survey Says Plan Saves Employers Money; Better Care for Injured Employees
DALLAS (Feb 11, 2016) - The workers' compensation alternative that Oklahoma legislators passed in 2013 is working, according to a new client survey conducted by PartnerSource. This is the first time data on the "Oklahoma Option" has been compiled.
All the news is positive, from improved benefits to reduced number of claim disputes to employer savings. The Oklahoma employers surveyed realized an average 73 percent savings on their claims expense, even after adjusting historic workers' compensation losses for reductions expected under the new Oklahoma Administrative Workers' Compensation Act.
All 10 employers provide improved wage replacement benefits compared to workers' compensation, with seven having no waiting period, eight having no maximum per week, and 10 delivering an 85-100 percent of pay. Other benefits mirror workers' compensation, but require more communication from employers and more accountability from employees and medical providers. Also, out of these 353 claims, only three disputes are pending at the Oklahoma Workers' Compensation Commission.
"this new data is consistent with experience under the Texas Option to workers' comp, and demonstrates that the innovative Oklahoma Option model is good for both employers and workers," says Bill Minick, president of PartnerSource. "Employers appreciate having a choice and are more transparent in communicating with and taking care of employees when they do get injured. The very small number of disputes speaks volumes. Interest in the Oklahoma Option is growing because employers see that with us they can take better care of their most important asset - the workforce - and their bottom line."
The survey looks at 10 employers with date from the last 4-to-19 months and relies on traditional actuarial development methodologies. Their total estimated savings equals $5 million.
PartnerSource is a consulting firm that has helped deliver better benefits and improved outcomes for tens of thousands of injured workers and billions of dollars in economic development through innovative "Options" to workers' compensation over the past 20 years. PartnerSource's team of legal, claims, insurance and information specialists work with employers and their insurance brokers in a growing number of states. For more information, visit our website at www.partersource.com.