March 21, 2017  | By Elissa Rex

The Association for Responsible Alternatives to Workers’ Compensation (ARAWC) is excited to bring to your attention a landmark report from the Texas Public Policy Foundation (TPPF). Key findings include:

  • Texas’ voluntary (nonsubscription) system has benefitted employers and employees through shorter periods of disability after accidents, fewer claim disputes, lower costs, and faster claim payouts.
  • Competition from private sector work-injury benefit plans has caused dramatic improvement in Texas’ regulated system.
  • The U.S. Department of Labor and other special interests are waging a fight against private sector work-injury benefit plans in Texas and in other states that are considering adopting the Texas Model.
  • Competition in injury-benefit plans has made a significant contribution to the vibrancy of the Texas economy.

“TPPF’s report couldn’t come at a better time. Several states are starting to look at innovative ways to reduce workers’ comp premiums, keep employees safe and provide better benefits and superior care for injured employees. Not only is Texas’ system unique, but its successes shine light on the fact that workers’ comp can be done differently.” –Allen Wingfield, President Association for Responsible Alternatives to Workers’ Compensation

A number of third-party sources have already weighed in and are available for comment:

Levi McCathern
Levi McCathern

Levi McCathern: Partner, McCathern, PLLC

“There is no doubt at all that both employers and employees have benefited from Texas having a non-subscription option. Competition is a good thing. It forces us to do our best. A monopoly renders people complacent and satisfied with mediocrity. Virtually all workers’ compensation systems in this country grossly underperform in both cost and results because there is no competitive alternative.”

 

 

 

Barry Moscowitz: Partner, Thompson, Coe, Cousins & Irons, LLP

“My clients that are non-subscribers spend a tremendous amount of time focusing on safety — how can we make the workplace safer, what other training can we provide, is there a better piece of equipment? These are the questions that my clients spend the majority of their time addressing in the non-subscriber context.” 

Jerry Fazio: Partner, Owen & Fazio, PC

Jerry Murphy: Executive Vice President, AmWINS

For further comments or to speak to one of our experts, please contact Meaghan Klitch at meaghan@spaethcom.com, 214-871-8888