The West Virginia legislature was due to vote in special session today on technical changes to the state's plan for privatizing its workers' compensation system that are expected to save millions.
Lara Ramsburg, a spokesperson for Gov. Joe Manchin, said the legislative changes were expected to help save $100 million when West Virginia converts its state-run workers' comp insurance operation to a mutual insurer.
The conversion to a mutual, named Brick Street, is due to occur on Jan.1, 2006 with other private insurers being allowed into the market in 2008.
A board of directors for Brick Street has already been elected by participating companies, but Ms. Ramsburg said by changing the board to consist of appointees by the governor, the new mutual would be a tax-exempt operation for its first three years of operation and save $100 million.
She said the board appointees would be the same people already elected. She said the state Senate and House were briefed last night when the special session began.
The governor's calling of the special session drew praise from the Property Casualty Insurers Association of America, which said it was urging the legislature to quickly pass the necessary modifications.
West Virginia lawmakers approved the original workers' comp measure in January, entitled the Workers' Compensation Debt Reduction Act, which creates an employer-owned, private mutual insurance company regulated by the State Insurance Commission.
"We look forward to getting this new program up and running so that West Virginia insurance consumers can benefit from potentially lower premiums and a greater selection of providers when the system opens up to market competition in 2008," said Angela Zaydon, regional PCI manager.
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