Frank Viviano has been on both sides of Ohio's workers' compensation program that slashes premiums by up to 90 percent for some employers with good safety track records.
The owner of three Bartz Viviano Flowers and Gifts shops in the Toledo area was thrilled when he was a member of a small merchant group and was paying annual premiums of just $1,400 as of 1999 to insure 50 employees.
But he was in shock when a slip-and-fall claim involving a temporary driver led his business to be kicked out of the exclusive club and sent his premiums skyrocketing. Today, he pays about $33,000 a year.
Although he admits desperately trying to get back into the club, he said he now understands why other businesses on the outside looking in were frustrated by a system that even the Ohio Bureau of Workers' Compensation acknowledges is actuarially unsound.
First off, there are no exclusive "clubs" that gets sweet heart deals. What there is is a group rating program that allows companies with an excellent history to group with other companies so they can reduce their premiums.
But a business can be kicked out of the group for something as small as a late premium payment.
I have several clients that are experiencing these same ridiculous premium hikes.
If we want to have a comprehensive reform of workers comp in this state, we can start with taking the state out of the business and allow employers to purchase workers comp through private insurance companies. Something that 47 other states in the union allows.
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