Dec. 11, 2005
 
THE MANCHIN REPORT: Taking Last Major Step Toward Workers’ Compensation Reform
 
By Joe Manchin
Governor of West Virginia
 
Charleston, WV (HNN) --This week, I signed an executive proclamation that marked the last major step in our efforts to transition the state Workers’ Compensation system to a private insurance company; a significant move that gives our businesses and our workers a stable and viable Workers’ Compensation system for the first time ever.
 
On my first day serving as your Governor, I signed a proclamation calling the members of the legislature into special session to address the financial issues that were substantially hindering the state’s economic growth and stability. One of the major issues that had to be addressed to spur job creation and economic development in West Virginia was a permanent fix to our long-standing Workers’ Compensation problems.
 
While the legislature and previous gubernatorial administrations worked admirably over the past several years to address the issues impacting the Workers’ Compensation system, additional steps had to be taken to ensure that the mounting workers’ compensation debt would not burden future generations of West Virginians.
 
In six short January days, our administration and the legislature moved forward with landmark legislation that took important steps to ensure that future generations of West Virginians won’t bear the heavy financial burden of our past mistakes. During the past 11 months, a strong working dialogue has continued among legislative leaders and members of our state’s business and labor communities to make the transition of our Workers’ Compensation system to privatization a smooth one.
 
As Brickstreet -- the new private Workers’ Compensation company -- prepares to formally establish operations on Jan. 1, 2006, West Virginia employers and workers will receive better service and a more efficient and effective system. Improved efficiency in claims actions for injured workers have decreased the time between a worker’s injury and his or her receipt of the initial workers’ compensation wage replacement benefit by 50 percent. Injured workers will also experience improvements in the timely delivery of medical care.
 
Reduced cash outlays will save the employer community million of dollars without jeopardizing the quality of care for injured workers. West Virginia employers will also soon see rate reductions that will allow existing companies to grow and encourage new businesses to locate in the Mountain State. Effective Jan. 1, we will see an immediate aggregate rate reduction of 15 percent for West Virginia employers – a major step that further sends a strong message that West Virginia is indeed Open for Business!
 
This privatization sets the stage for real economic progress in this state. As I said at the conclusion of January’s historic special session that began this process, “This is just the beginning.” We began 2005 touting the positive impact of this effort. As this year draws to a close, it is clear that we are already seeing the benefits.