MAHONING VALLEY Workers' comp offers a bonus

The state recently voted to increase workers' comp rates about 6.4 percent for 2002, a spokesman said.
By BOB JACKSON
VINDICATOR COURTHOUSE REPORTER
YOUNGSTOWN -- Mention a workers' compensation seminar to most people, and they'd probably say, "You couldn't pay me enough to sit through that."
But when there's three-quarters of a million dollars on the line, things change.
That's how much Mahoning County stands to gain in a one-time bonus from the Ohio Bureau of Workers' Compensation. To collect it, all the county must do is send a representative to one of 11 "summits" the BWC is having across the state.
"It's a hell of a deal," said J. Kevin Sellards, the county's human resources manager. "All you have to do is show up, and it only has to be one of [three county commissioners]."
BWC spokesman Rob Glenn said the state is trying to help counties and local governments that are caught between the proverbial rock and hard place.
Claims increase: Statewide, workers' comp claims among the public sector are increasing, which in turn causes public employers' premium rates to go up. The bureau's oversight commission recently voted to increase public employer premium rates an average of 6.4 percent for the coming year.
That's a problem, though, because most counties are faced with declining revenues and skimpy budgets, so higher workers' comp payments compound the financial problem.
To help them out, the state has agreed to a one-time, 50-percent rate reduction for public employers, which include cities, counties and school districts, in 2003. Statewide, the break will total about $144 million, says BWC information.
"Because of the economy, we don't want to just raise rates without helping people out a little bit," Glenn said.
Even more: The state created a special program that will grant public employers an additional 25 percent reduction if they attend one of the summit meetings, Glenn said.
The four-hour meetings will be in January and February 2002, and will focus on giving local leaders information and training in ways to help curb workers' comp costs. The savings will come in 2003 because rates are based on the previous year's claims, Glenn said.
"If the heads of local public employers attend these sessions and implement proven cost-saving measures and solid safety programs, we believe future cost savings can more than equal this one-time dividend," BWC Administrator James Conrad said in a written statement.
Sellards said the summits are a good idea because they give government leaders an incentive to attend meetings they otherwise probably would not.
The public sector's use of the workers' comp system is skyrocketing while the private sector is on the decline, Sellards said. The state simply wants to help get the upward trend under control.
"The state wants commitments from the top of the organization to try and reverse this trend, but you can't get commitments if they never show up," he said, noting that county officials will attend.
Steps taken: Mahoning County already has taken steps to better manage its workers' comp, Sellards said. The prosecutor's office took over claims management instead of commissioners' hiring a consultant to do it.
Prosecutor Paul Gains said his staff recommended that commissioners hire an in-house risk manager, which they did. That, as much as anything else, has helped keep costs down, Gains said.
In 2000, the county's claims costs were $474,730. So far this year, the costs are a little more than $91,000.
Other counties: Commissioners in Columbiana and Trumbull counties also said they'll attend because the deal is too good to pass up.
"I'll sit there until hell freezes over to get that extra 25 percent," said Trumbull Commissioner James Tsagaris.
David Cranmer, Columbiana County Commissioner, said he's not sure how much the county's actual savings will be because there's also a rate increase going into effect.
"It's one of those things like going to a mall where they raise the price and then give you a discount," he said. "But you bet we'll be there."
Officials did not know the date of the nearest summit meeting.
Glenn said losing the additional revenue won't affect the state's ability to pay benefits to people with workers' comp claims.
And he cautioned that leaders should not expect such a generous break again.
"Don't get used to this money coming back to you, because that flexibility might not always be there," he said.
bjackson@vindy.com