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Friday, July 23, 2010

New Jersey Task Force Recommends Privatization of Workers Compensation

A NJ Task Force has recommended to Governor Chris Christie that workers' compensation should be privatized in the State. The Task Force looked to the West Virginia system in making its recommendation.

"West Virginia Governor Joseph Manchin signed a law in 2005 fully privatizing the state's Workers' Compensation Commission, transforming it into a private insurance carrier, BrickStreet Insurance. Since the completion of the process in 2008, workers' compensation rates have declined an average of 30 percent statewide, translating to more than $150 million in annual employer savings. BrickStreet—formerly the state monopoly—is now competing for business in other states."

The State of New Jersey, like other major industrial states, is suffering from major economic deficits that have resulted n curtailed state services including the furlough of Workers' Compensation staffs and closing of offices. The state's financial woes are mirrored in the local municipalities and it is anticipated that those governmental entities will also follow the State's lead to jettison the administration of workers' compensation programs. In california some localities have gone even further and privatized their staffs to lower costs.

Click here to read the complete report.

Click here to read more about workers' compensation and claims for benefits. For over 3 decades the Law Offices of Jon L. Gelman1.973.696.7900  have been representing injured workers and their families who have suffered asbestos related illnesses.