
Here is a chart that uses Department of Labor & Industries’ data that breaks down, to a FTE illustration, the millions of dollars in employers’ workers’ compensation rate increases for boarding homes and nursing homes that would immediately result upon passage of Initiative 1082.
Effectively this would be tantamount to a cut of millions of dollars for this care on top of the $28.2 million in new Medicaid cuts announced today and on top of whatever additional cuts occur in the next biennium.
Note that the assumption is made by I-1082 proponents that rate increases will be slowed after July 1, 2012 by the entry of private insurance carriers.
However, until that time, and beyond, the new employer cost of paying the workers’ half of the Medical Aid premium will remain as a gigantic increase in your rate structure and it’s impossible to imagine that AIG, Liberty Mutual, or any other insurer is actually going to reduce rates from whatever they’re at as of July 1, 2012. What’s their incentive? Thus, even under the best case scenario, you’ll never break even from the gamble I-1082 represents.
I-1082 will not immediately increase costs for self-insureds as they already pay the entire Medical Aid premium.
Any comparison to reductions in rates in West Virginia to suggest rates here will decline post-July 1, 2012 do not work. Those reductions only occurred due to the fact that the old West Virginia system subsidized the coal industry and socialized its liability to all employer classes.
Vote No on I-1082.
