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Workers Comp Opt-Out Measure Debated in Oklahoma

Lawmakers in Oklahoma are considering a bill that would let employers withdraw from the workers’ compensation system, a proposal backed by multistate companies in hopes of reducing insurance costs
March 28, 2012

Lawmakers in Oklahoma are considering a bill that would let employers withdraw from the workers’ compensation system, a proposal backed by multistate companies in hopes of reducing insurance costs. The proposed measure has drawn flak from insurers, but lawmakers appear likely to clear the bill, says Joe Woods of the Austin, Texas office of the Property Casualty Insurers Association of America. “I suspect that if this passes in Oklahoma, there will be businesses pushing it in lots of other states,” Woods said. If adopted, Oklahoma would be only the second state to allow companies to exempt themselves from the state workers comp system. Texas has allowed opt-outs, or “nonsubscription,” since its comp system was established in 1913.

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