Reform Working For West Virginia
By the News-RegisterWest Virginia's many problems developed during a period of decades, sometimes generations. Most of them will not be resolved quickly.
But one colossal leap forward has occurred with lightning speed, at least in the context of any major change made by government. It is the conversion of the workers' compensation insurance program from being a gargantuan drag on economic development - not to mention a big expense for taxpayers - into a contributor to progress in our state.
Looking back, it seems long, long ago that the program was an arm of state government. As such it built up big unfunded liabilities, clogged the state Supreme Court with appeals, charged businesses high premiums and, because of the uncertainty of workers' compensation rulings, kept some companies from coming to West Virginia.
But that was only in 2005, just three years ago.
Then, with Gov. Joe Manchin insisting that it had to be done, the state Legislature approved a plan to "privatize" workers' compensation. It called for establishment of a quasi-government agency to provide the insurance, with a schedule set for it to become an entirely private enterprise. In 2006, BrickStreet Mutual Insurance Co. was established - and it quickly began to make workers' compensation more efficient. Premiums charged to businesses were reduced substantially.
Last week another milestone was passed, when, under the schedule approved by lawmakers, the workers' compensation insurance market was opened up to all companies wishing to provide it. One hundred sixty-two of them have indicated interest in providing the insurance. That will mean more competition and, in all likelihood, better service and lower premiums.
All of this has happened in about two and one-half years - again, a very quick turnaround.
Transformation of the workers' compensation system from a government program that was bad in many ways for our state to a fully competitive private-sector operation has been an important step forward for all West Virginians. It occurred because of Manchin's leadership and the willingness of legislators to break with tradition - and take a major political risk.
Some said it couldn't be done. Some said it would be bad for working West Virginians and for some businesses. Indeed, there have been some complaints from both injured workers and some small businesses - but not to the extent that critics of the move predicted.
The workers' compensation change provides a model for what can be accomplished if West Virginians place progress ahead of politics. It has been followed up by other reforms, including one that has saved Mountain State residents tens of millions of dollars on their vehicle and home insurance policies. But more remains to be done on a variety of fronts, including education, infrastructure and economic development, if our state is to achieve the progress West Virginians need and deserve. The workers' compensation triumph is proof that reform can work. It also is a powerful argument in favor of more dramatic changes in how we as a state do things.
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MaryLee
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07-07-08 5:01 PM
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While one reform "may" be working, several other West Virginia departments need to be cleaned of corruption and cronyism. Save this article, folks, as future news will look bleak in comparison.
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UNCOMMONSENSE
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07-06-08 9:07 AM
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And WHO will pay to settle all these law suits? The taxpayers of West Virginia!!!!!!! PROGRESS?
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Blackrock
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07-06-08 9:06 AM
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It comes as no surprise that the private sector will always outperform government run agencies. The state needs to continue to do this with other programs such as WVDOT. The city of Wheeling would be wise to do the same. Turn over many city services to the private sector, eliminate waste, remove the B&O tax, and watch business return to the city and surrounding area.
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UNCOMMONSENSE
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07-06-08 9:04 AM
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The only thing that has happened, is legitimately injured workers are now being denied the compensation and medical treatment they deserve! Thus very costly lawsuits will MORE than erase any monetary gains produced by these cut throat tactics by companies like Brick Street.
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wvforsale
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07-06-08 7:39 AM
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The transformation for workers comp was started in 1993. Quit giving the MOJO all the credit, he just happens to have finished the transformation. The wall board plant South of Moundsville is the largest business investment in the state since 1996, 12 years in the whole state!!!!!Think about that one..............
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