Oklahoma Workers’ Comp Reform Legislation Advances

Legislation that would reform Oklahoma’s workers’ compensation system has passed the House and Oklahoma Insurance Commissioner John D. Doak says that’s a good thing.

Applauding the leadership of House Speaker T.W. Shannon and Senate President Pro Tem Brian Bingman on passing SB 1062 in the House, Doak said the bill will spur economic growth in the states.

The legislation would change the current court-based workers’ compensation system to an administrative system and give the option of developing an alternative benefit plan to qualified employers.

In a statement released by the Oklahoma Department of Insurance, Doak said workers’ comp reform has been a priority for him.

The average cost of workers’ comp benefits in Oklahoma is $830 per employee, one of the highest rates in the nation, Doak said.

“Because Arkansas and Texas are under $300 per employee, this has not only had an impact on our state economy, but also limits the growth of local businesses,” he said.

SB 1062 would establish prompt responses to employees in the claims process and encourage employers to do the right thing in a more user-friendly, less adversarial environment.

The Oklahoma Insurance Department conducted a recent statewide tour providing opportunities to discuss current workers’ compensation concerns and the possibility of various future reform measures. High costs and fraud are listed as the biggest problems with Oklahoma’s workers’ compensation system, according to survey responses received during the public forums discussing workers’ compensation concerns.

Survey respondents also identified a key solution to workers’ compensation problems to be the implementation of an administrative system to replace the current court-based claim system. A majority of states have adopted a structure for workers’ compensation claim administration.

SB 1062, which went through significant rewrites in the House, will go back to the Senate for a vote.

A companion bill that would give judges in an administrative workers’ compensation system jurisdiction in workers’ comp lawsuits against Oklahoma towns, counties and education boards also has passed the Oklahoma House, according to the Associated Press.