Bismarck Tribune - North Dakota News - WSI problems not all GOP fault

WSI problems not all GOP fault

Jan 04, 2008 - 04:02:06 CST

By ERIC RINERSON
Fargo

Leon Thiel and Kevin Murch's Democratic-NPL touch-team political assault against Gov. John Hoeven and Republican lawmakers is worthy of the World Wrestling Federation. Their partisan attempts to lay the Workforce Safety and Insurance issue at the door of the GOP are just plain dishonest, but fortunately, the facts speak clearly.

The bill to remove WSI from the governor's authority had overwhelming bipartisan support. Democratic-NPL House Leader Merle Boucher co-sponsored the bill, and most Democrats, including Joel Heitkamp, not only voted to take authority away from the governor, but they also voted to override Republican Gov. Ed Schafer's veto of the bill, which sought to stop the action.

Unlike a number of opportunistic Democrat-NPLers, who seek political gain by inflaming the situation at WSI after they voted for it, Hoeven's position has not changed since day one: WSI belongs under the governor. Also unlike a number of Democrat-NPLers, Hoeven is using his leadership to help fix the problems at the agency and oppose Sandy Blunt's severance package, despite the fact that he has no authority in the matter owing to a law Democrats helped pass.

Thiel and Murch have taken a page from Washington political nastiness, using half- truths, innuendo and personal attacks to advance their political agenda. Since the bill's vote and sponsorship are a matter of record, it's clear that either they are so blinded by partisan politics that they ignore the facts, or worse, that they are willfully distorting the facts for political gain. The last thing WSI needs, and the last thing North Dakota needs now that we're making real progress, is their brand of malicious partisan politics.

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Comments

IQ wrote on Jan 11, 2008 3:05 PM:

" Exactly how dumb do Rick Berg and George Keiser think we are? THEY are the leaders who covered up the WSI mess during the session and stone-walled any meaningful changes that were introduced. NOW they want to ride to the rescue with some bogus suggestions on how to "fix" WSI???? They weren't interested in fixing WSI during the session when that had the chance, now they think we are going to listen to them and believe they care for injured workers, WSI employees and the rest of us. Sorry gentlemen but that train has left the station. North Dakotans can see through this attempt to rewrite history because its election time. When there are changes in who controls the legislature you two can look right in the mirror and see who is responsible. "

Grow Up GOP wrote on Jan 11, 2008 12:16 AM:

" The rest of the class has figured out who the incompetent bully of the playground is. Its time to spend more time with your family-and it will look better on your permenant record than getting fired. The gigs up. The fat lady is singing. But wait-maybe you can drag the Governor down with you-now thats a keen strategy. "

OUT OF STATE WC wrote on Jan 10, 2008 2:25 PM:

" To preserve my anonymity I will not be revealing the name of my consulting company. However, you may ask me questions regarding how other WC companies states operate their underwriting, laws and administration. I will answer them to the best of my ability. Please understand that I have an underwriting background and perform underwriting and administrative consultation,.....not claims. We have separate claims auditors who perform that function and so I would not be one to give an expert opinion on whether a claim was handled correctly or whether a claimant was reasonably compensated for their injury. "

TO Out of State WC wrote on Jan 9, 2008 10:24 PM:

" Please tell us the name of the company you work for? "

OUT OF STATE WC wrote on Jan 9, 2008 6:18 PM:

" To...You Humble Us. Just to clarify, I am not and have never been an WSI employee, supporter nor a critic. I work for a consulting firm that audits workers' compensation insurance companies and provides consultation on reinsurance arbitrations all over the US and world. My point is that these issues are very complex and are not as simple as many suggest on this blog. Honestly, I have no idea whether ND does an adequate job of compensating injured workers or not??? An independent claims audit of WSI may be warranted but lets not suggest that there should be an open purse for everyone. Disability is first established by the physician, reviewed by the claims adjuster and confirmed by the judge. If you don't agree, start with the physician, get a second opinion, etc. If you do not have a lawyer I would suggest one as they will help you navigate the system. Sometimes private insurance companies prefer you have one. "

BILL G-A-R-R wrote on Jan 9, 2008 1:55 PM:

" I myself make mistakes daily, some days hourly. It's only human nature.But i was born with the human gene that makes it acceptable to admit it. When i mess up I own up to it. When i got caught with my hand it the cookie jar i didn't have a Carl Rove philosophy to blame the cookie jar. When will the GOP take a ''wide stance'' and admit that they flubbed up? "

BILL G-A-R-R wrote on Jan 9, 2008 9:09 AM:

" When in the last 20 years has the Grand Old Party taken responsibility for anything?.... This mess?... The war?... Gas prices?... This floundering economy?... Anything??????..... The evidence is overwhelming and compelling. You have squandered it all. Step up to the plate and fix your mess. "

You humble us. wrote on Jan 8, 2008 10:13 PM:

" OUT OF STATE WC.

Thank you for educatin' us hicks. Maybe now you could explain to us why a hick district judge took WSI to the wood shed for trashing an ALJ decision and then the judge reinstated that decision. Tell us how it is perfectly reasonable how WSI has stacked the deck against IWs. Tell us how it is OK WSI is going to get rid of those pesky independent ALJs. Tell us why WSI's absolute power is not corrupting them.

http://www.northdecoder.com/Why-So-Much-WSI-Lately.html

Please. "

OUT OF STATE WC wrote on Jan 8, 2008 3:57 PM:

" Outside of ND, Base rates for each class code (job classification) are determined by each state by collecting total payroll vs total losses for each class code in the state. Each private insurance company then files a loss cost multiplier off that base rate to come up with their own rate for each class code base on actuarial studies of past losses often going back 10 years + inflationary measures like Medical costs. WC premium is determined by Total Remuneration divided by 100 x class code rate = manual premium. Manual premium is adjusted by an Experience Modification factor, Schedule modifiers if available (discretionary or non-discretionary debits or credits), premium discount and expense constant. SOUND COMPLICATED? Yes it is to the un-educated. Don't try to be an expert on something you don't understand. This is not political and those who are not in the know should not point the blame.
"

OUT OF STATE WC wrote on Jan 8, 2008 3:39 PM:

" Providing a quality WC system in which the insured (business owner), injured employee and the insurer (WSI) is not political. It matters little whether this organization is run by the state or independently. In fact, most states who had a state funded and operated WC insurance company have now let them become independent. Some example include State Fund of Minnesota, Kentucky Employers Mutual, Hawaii Employers Mutual, Missouri Employers Mutual, etc. Most of them have been very successful while competing against private competition in their states with most being one of the largest in the state. Some states have over 200 companies that are licensed to write WC. Lets not put blame on either party. If the injured employees are not being fairly compensated than the judges decisions need to be evaluated within respects of the benefit laws. If the benefits laws are inadequate than they need to be changed.

"

OUT OF STATE WC wrote on Jan 8, 2008 3:26 PM:

" To whom it may concern. Class code rates are different for each state because workers' compensation (WC) coverage is typically regarded as a State Act and not a Federal Act, allowing each state to determine its own legal system for insureds and injured workers within the state of domicile. Because of different WC legal systems in each state, the benefits provided to the injured employee differ greatly from ND. Thus, loss rates by class code may be significantly higher or lower than another state. By paying higher benefits to workers' you will inevitably raise WC premiums. There is no easy solution because truly injured workers deserve proper care and benefits. However, there is much abuse in the industry primarily driven by employees who claim soft tissue injuries (cannot be physically proven by an x-ray or MRI) and who hope to live off the system. "

Lost wrote on Jan 8, 2008 3:19 PM:

" Well the way I see it is, if you are in the majority. And you talk the minority into something, maybe on false reasons. I don't now. And there is major problems. I think that you are at fault. So yes the WSI problems are the fault of the GOP. because they are, and have been the majority for a long time. If things are going great they sure would take the credit. But sense things are going wrong, well it most be somebody else's or everybodies fault. Stupid thinking. "

Economic Conservative wrote on Jan 8, 2008 2:36 PM:

" I am sorry I insulted you by accusing you of being a Democrat. Fact there is no party in North Dakota that subscribes to true republican philosophies. Several months ago I posted the philosophies of the Republican Party in a similiar topic forum. I asked those of you who profess to be conservatives and or Republicans to explain how your arguments fit into the philosophy. Everyone disappeared. I am sure i am going t0o set off fireworks with this post, but the fact is we here in North Dakota live in a welfare state. Before you go off on me, what i mean by that is ND is state of government subsidies, huge government and freespending, fiscally irresponsible leaders. Take alook at the last legislative session. Agency budgets increased for no reasons at all. Not even requested, but the legislative leadership did it anyway. As long as our population stays where it is at, not much larger than a midsize city, taxes will remain high and worker's comp can continue to have those salary caps. However, if and when we grow those caps will have to disappear. I would suspect that if the oil boom continues for another 5 or ten years, the caps may have to go anyway. The rigs have a high mod rating. Sooner or later it will catch up to us. Personally, I think WSI should hold on to the excess reserves it has as it is going to need them. In any event, free enterprise, competetion, less government, and only providing for those that can't provide for themselves are principals of the Republican Party that have escaped the conservatives of North Dakota. From a salary cap point, you are correct, yearly premiums will go up, but then again, they will go up regardless if we grow as a state. Privatization and competetion is the only long term solution. "

to Economic Conservative wrote on Jan 8, 2008 11:47 AM:

" Okay, I am not a Democrat, not even close. That is probably the most insulting thing you have said to me. The reason these business need to purchase comp for their out of state employees is that law does not allow WSI to be licensed insurers outside of ND. Therefore requiring these employers to purchase comp from WSI for ND employees and use other insurers for out of state employees. I agree that the premium structure will be based on the benefit structure in the state but know as well that the salary cap will also play into it as the private market will not cap salaries the premiums are based on, they will use full salaries. I have spent the better part of a year working on this exact issue for clients and have talked with the insurers you mention as well as many others. Go the same answer from each on the salary cap. "

to Economic Conservative wrote on Jan 8, 2008 10:59 AM:

" Okay, first off I'm not a democrat, not even close. In fact that may be the most insulting thing you have said to me. Second WSI cannot by law be licensed in other states to write comp. So if a ND business has employees in other states they cannot insure those employees through WSI, but do have to use WSI for ND employees. I understand that an increase in premiums in other states are increased in part due to higher benefit payments, but as well the salary cap plays are part in the lower premiums in ND. I am not trying to get into a chest puffing match, but I have spent the last year working on this exact issue for clients and know that some of the companies you mentioned and others would have higher premiums because of the salary cap. "

Interested citizen wrote on Jan 8, 2008 9:29 AM:

" To Oz - I may not agree with everything you've written, but I wanted to say "thanks" for the good information, written in a professional, easy-to-understand manner. It's nice to have information written in a neutral, common sense tone instead of the inflamatory, name-calling manner that so many others use. Facts are facts, personal opinions are just that...personal...everyone doesn't have to agree on them. "

EINSTEIN wrote on Jan 8, 2008 9:28 AM:

" I don't think the obvious, continuing problems and scandals at WSI are either the democrats or republican's fault. They both messed up when they removed it from the governors office and put it under a board accountable to no one. However you cannot change the fact that the republicans clearly are responsible for not making significant changes during the last session. The republican dominated house voted against every single bill introduced to help injured workers EXCEPT those favored by Keiser and Wald. The same house voted for a $50,000 slush fund that thankfully the wiser, more in touch Senate unanimously defeated. Remember when Rep Wald stood up in front of a legislative committee and said he couldn't beleive WSI management was mean to its employees and that it had to be a few disgruntled workers? Well Frank what do you think now? More than 75 employees have left WSI and a WSI hand-picked consultant showed that 2/3's of the rest of the employees wanted Blunt and his team fired? How far off were you on that statement Frank? I hope you are better at your job as an insurance agent than you are a legislator. Indvik's resignation was a start for those who blindly supported the now disgraced Blunt. I know I'm dreaming but wouldn't it be nice if some of the other disciples did likewise? How about Halvorsen, Marthaller, Armstrong, Bjornson, Wallein, Nallie doing likewise? How about Keiser, Kasper, Wald, Berg and a few others doing the same. Now that would be progress, but it would require too much integrity and honor. "

Economic Conservative wrote on Jan 8, 2008 9:19 AM:

" There you go again, twisting the facts. I asked , and I ask it again, what insurance companies, you know, like AIG, Travelers...did you survey to see what premiums would be for ANY classification? If you think that is proprietary information, you need to get out of the business world. You are right; it doesn't take a rocket scientist to figure out that you have no clue as to what you are talking about. I am curious, if the company you are referring to is a ND company, why aren't they utilizing the WSI out of state worker program? Could it be, oh no, that they primarily do most of their business out of state? Could it be that the benefit caps are twice what they are here in ND? Nah, it couldn't be. That would just blow up your argument now, wouldn't it? Once again you twist the facts. Go back to the Democratic party offices, and come up with a new argument to keep this a government generating, free enterprise defeating program. "

oh come on now ... wrote on Jan 8, 2008 8:47 AM:

" every problem in this country is the fault of george bush and the religious right. just ask any democrat around ... "

to Economic Conservative wrote on Jan 8, 2008 8:17 AM:

" You don’t need figures when the obvious is so clear. No one is going to divulge employer information to the extent that would satisfy you. I can tell you of a business in North Dakota who had to purchase comp for their out of state employees that would have paid five time what they pay in state, primarily due to the salary cap in North Dakota. I am not going to tell you that it was XYZ Company who pays X dollars per employee in North Dakota and would have to pay Y dollars for the same coverage on a forum such as this. It doesn’t take a rocket scientist or someone who dubs themselves ‘Economic Conservative’ to figure this one out. But you keep brushing off the evident so you don’t have to deal with the reality that is insurance. "

Indvik Resigns wrote on Jan 8, 2008 7:37 AM:

" How come there is nothing on the homepage about this? "

HOUDINI wrote on Jan 7, 2008 8:42 PM:

" Oz, nice try with the same old lame WSI-Indvik-Blunt-Keiser line of BS. WSI's fund was in the BLACK in 1997 when it was moved under the control of the board. Governor Schafer had taken the measures, along with legislative changes to get it out of the red. So your comparison to 255 in the red is irrelevant and inaccurate.
Once again in your post you try to argue issues that were never presented. I never said I didn't think Heitkamp didn't have a hidden agenda. You are the one smitten with Keiser and try to defend him. i never hold out Heitkamp or any other legislator as a great example. Following your same tired, lame logic I never said I wanted to toss out all legislators who were businessmen. I said Keiser is ethically impaired because he is a business owner, and he is ethically impaired. The irony and hypocricy of Keiser is that he feels perfectly comfortable tossing out things like "witch hunt" and "hidden agenda's" and people having conflicts of interest when he has one of the most significant conflicts which is a personal monetary interest.
Hopefully your employees (if they exist) never have a serious accident. But if one of them were crippled or somehow permanently impaired you can bet they wouldn't be thinking of a pay raise but how they were going to financially survive.
Radical, me? I don't think so. I like many other people in this state are sick and tired of our citizens being treated like the injured workers are by a non-caring bureaucracy that is accountable to no one. You can bet the businesses and the lock-step chambers of commerce will spend money to defeat the initiative but you see money isn't everything. Well except to large employers like yourself, unless you Armstrong or Marthaller. "

REAL TIRED wrote on Jan 7, 2008 5:59 PM:

" Your right I did make a mistake,but the numbers are still real close to being the same in the black and the out come stays the same,the seriouly injured workers are'nt being treated right,and I blame policians,the board ,higher levels of wsi and pro-wsi people,is there anything that I forgot-wsi needs to be gone threw with a lice comb!! "

Economic Conservative wrote on Jan 7, 2008 4:28 PM:

" Yes, nothing changes with the WSI (Hoeven) supporters. They don't need facts to back up thier claims, we are just supposed to take thier word for it. A quote from my gradfather: "lairs figure, but figures don't lie". "

to Real Tired wrote on Jan 7, 2008 3:50 PM:

" I am not sure you are understanding what oz said. In the Red is a bad thing for both employers and workers. It means the system didn't have money to pay benefits, something no one wants. The current structure allowed for the fund to utilize the State Investment Board to invest the premium dollars and the strong market has allowed the fund to grow to a surplus. It is unfortunate that the system has to be so strict but the fraud and unnessisary litigation has let us to this impass. So if you really want to blame someone for the situation try the ambulance chasers. "

REAL TIRED wrote on Jan 7, 2008 2:20 PM:

" To Oz: Well we know which way your going an it's not for the injured worker because you do'nt need to be a rocket scientist to figure out how wsi got to be 225 million in the red it's because their not taking care of the injured workers that the bottom line, enough of the rates, with no more workers no more business and word about north dakota's great wsi is gettig out!!.... "

to Economic Conservative wrote on Jan 7, 2008 1:10 PM:

" You don’t need surveys or company data to figure this one out. Currently WSI caps payroll liabilty to around $22,500. So if an employee earns more than $22,500 per year than the employer is only responsible for a premium based on $22,500. So an employer pays the same for a person making $25,000 or $125,000. No private insurer would do that, they would charge based on full salary. I know of a number of business (if you think I am going to name them on this forum your crazy) who had to purchase comp for out of state employees and it cost them nearly 5 times what it cost them for in state. So there is your long awaited answer to your question. "

oz wrote on Jan 7, 2008 12:35 PM:

" Houdini,
Talk about a radical point of view. First of all, winning the initiative measure might be a little tougher than you think. Other than union support where are you going to get the advertising funds? It is also unrealistic to think that because a minority group of labor backed legislators want to initate bills for change that automatically business and legislators should fall on their swords to give up laws that changed the fund from $255 Million in the red to the heathy reserve we now enjoy. Do you really think that Heitkamp is not motivated politically to support these bills? You might want to review his voting record. Any bill logical or not that benefits the organized labor point of view he supports without question. Everyone knows who butters his bread.

Sure I defend Keiser because his past legislative work has improved WSI from the businessman's point of view. I have seen him work tireless hours for reform in WSI and for change at Job Service. These changes have allowed me to spend previously useless money spent on PPI's, high premiums, and claimant attorney bills for injured workers on raising my 250 employees salaries. If you asked one of my employees if they would rather have wage increases or increases in workmans comp premium you might see a little problem with your initiated measure. If you want to throw out all the businessmen who are legislators because they all got benefits for voting for WSI reform, you wouldn't have much of a legislature left. Attorneys and farmers. Good Luck with that. "

Audrey wrote on Jan 7, 2008 11:28 AM:

" Okay, so we are talking from political and economic standpoints. I understand that we need to limit the liability to the business owners for a thriving economy. These things are very important to me as well. I understand that the way it was before, there were abuses going on. What ever happened to common sense and common judgement? Can't we some how; no matter who "controls" WSI take every case as "individual" cases? It seems to me that the way it is right now, EVERY injury that involves a joint of any kind (including spinal) are AUTOMATICALLY considered pre-existing conditions due to age, arthritic conditions or some other absurd reasons. First things first, before paying any benefits, shouldn't WSI investigate the worker as an individual? Look at their claim "history" and see if they are a professional claims-sponge or not. Before my fight with WSI, I was rarely out of work and had never so much as collected unemployment in my life. It is there for people who need it and deserve it. If it were closely monitored by any impartial entity, the abuse would be greatly limited. "

Economic Conservative wrote on Jan 7, 2008 11:23 AM:

" I have posed this question time and time again to those of you who CLAIM that privatization will not work. What companies did you survey or what studies are you citing as your source that privatization will drive up the costs? I can think of four companies off the top of my head whose rates are tied to the benefit caps that states impose, and again, I know from experience in working with WC in 9 companies, two which are state funded that private carriers are competeitive if not cheaper. So, once again, what companies or surveys are you citing? "

to Economic Conservative wrote on Jan 7, 2008 11:01 AM:

" Privitization is not a cost effective solution. Many employers in North Dakota rates will increase considerably due to the salary cap used by WSI that is not used by private insurance companies. Construction companies and the oil patch would be hit very hard driving costs up more. As you ridicule others on this forum for their thinking you may want to check your out as well. "

Audrey wrote on Jan 7, 2008 9:59 AM:

" To "just Me" and "real tired"

I could write forever, just wanted to say "good job to real tired". You speak for the majority. To "just me" ... I had to fight and ultimately "won" with a serjury that came a little too late. The sad thing is that most injured workers are busy supporting a family and haven't got the time required to go through the battery of "proper procedure" as outlined by WSI and enforced by rediculous laws. Please contact me at cmeconfuzed@aol.com we should communicate. Maybe I have pointers for you. Number ONE: DO NOT GIVE UP!!! "

REAL TIRED wrote on Jan 7, 2008 9:14 AM:

" TO HOUDINI: GREAT WRITE--Do you have room in you boat for one more because your going in my direction,thanks and keep it up because sooner or later the pulbic is going to have to open their eyes and see just who is slinging all the B.S. "

Economic Conservative wrote on Jan 7, 2008 9:11 AM:

" Oz, once again you slant the truth. As a businessman not only would the persons you mentioned be ternminated in a company, but many of the Board would be gone also. I would pose some tough questions for you, but you have disappeared from all the other posts I have done that on and I am enjoying reading your posts. I would be curious as to what the 5 states you mention are and what companies they involve though. Privatization is a cost effective solution and the ONLY way to get the political corruption out of our workers comp program. "

to Something Else to consider wrote on Jan 7, 2008 8:29 AM:

" Sorry to burst your bubble but your statements are incorrect. WSI uses parent classes of the national standard classes. The market in North Dakota is so small that they cannot use the subclasses the rest of the industry uses therefore requiring them to use parent classes or group together classes with similiar risk. Facts are key to this arguement and unfortunately they seldom get told. "

HOUDINI wrote on Jan 6, 2008 9:22 PM:

" To Oz, sorry but even I couldn't make Keiser's voting record disappear. Keiser is a business owner and not just pro business. He benefits personally from keeping WSI rates low and thus he's ethically compromised. He voted against every single bill (over 20 of them) last session that dealt with WSI and injured workers and were introduced for injured workers. Are you going to try to tell me that he's being fair? He voted for bills he and his interim committee introduced but apparently no one else has good ideas. Why hasn't he publicly spoken about the illegal excess reserve WSI has? Why did he publicly support Blunt before during and after his termination? Is that sound judgment we look for in our legislators, to support an out of state arrogant ethically challenged man (you admit to it)? It isn't a media hyped conspiracy, Armstrong has more media connections that anyone else involved. He recorded Keiser's presence at these secret meetings to help throw the state's attorney out of office. I laugh that you have the perspective of a media conspiracy when it's WSI (and Indvik, Blunt, Keiser, Wald, Kasper etc) who want us to beleive that the auditors office, the state's attorney, the attorney general, the highway patrol and DOT are all in some plot to get Blunt and WSI. As was posted on here in the past, there were fewer parties in the conspiracy to kill Kennedy. Laughable, it's all hilarious if you think the public is buying this stuff. Wait until the initiated measure passes and we'll see what the real North Dakota public has to say about this. "

Kimberly wrote on Jan 6, 2008 4:47 PM:

" Emerald City - I agree. All along, we've been hearing about the media being to blame, that things aren't as they are reported, etc. However, aside from mentioning these items, there has been no "other side to the story" revealed. If there really is another side, where are those facts? All we've seen from the other side supporters are comments blasting everyone else - the employees, the whistleblowers, the media, etc. I know that if I was accused of something, I'd make sure I got my story out there - facts, not my friends and family talking about my good character, sunny disposition, etc. "

Online Editor wrote on Jan 6, 2008 12:47 PM:

" To oz and others: A clarification to oz's comment - Steve Cates is a geophysicist and the publisher of the Dakota Beacon magazine. The Tribune is not affiliated with his publication in any way. "

oz wrote on Jan 6, 2008 12:01 PM:

" Emerald City
Questions were asked about the ethics that were asked about Sandy Blunt, Mark Armstrong, Steve Cates and George Keiser. I have stated that I believed Sandy should have been terminated. Primarily because his whole team embarrassed the State and policy holders, no use kicking a dead horse about his ethics. I have stated that Mark Armstrong should be terminated. His actions were and continue to be questionable professionally and ethically. George Keiser is a hard working pro business legislator who's name has been linked to a conspiracy theory launched by the media. I have known George personally for 15 years, his reputatation in my opinion carries more weight than a conspiracy theory. Steve Cates is a newspaper guy with ties to Mark Armstrong and his wife. I have never read his publication nor intend to. If you think he was unethical,you might have to question all newspaper reporters. It is all about the story not thie truth. Remember how the media accused the Duke lacross team, convicting them in the press instead of with the truth. There was a rush to judgement in the press and these blogs concerning Blunt and Leinganger (SP) to which no convictions have been handed down.

As a businsessman I believe in the ND Comp system because I have seen how poorly insurance based programs work in five other states. High premiums, low controls, dissatisfied
injured workers, and high claims rejection rates. I believe that the blood letting at WSI is not finished. Armstrong, Long, Leinganger and Kay G all need to be terminated for their actions. In private business they would all be gone for their actions. I am not willing to give up on the system because we have hired three consecutive poor administrators. Prior to Traynor the we had 16 directors in 17 years. That history proves that the Governor is not the answer. "

Republicans are at Fault wrote on Jan 6, 2008 12:31 AM:

" The Republicans control the legislature and Keiser (republican) is deeply involved in the whole mess, but it's not the Republican's fault? The Republicans created this mess and they should take responsibility for it and fix it. "

Emerald City wrote on Jan 5, 2008 4:18 PM:

" OZ, I see tough questions are put to you on other posts and you conveniently leave that post and start posting here, which you can do, however many of us want you to answer the question(s) put to you on other posts as well. We are waiting!!!!!!!!!!!!!!!!1 "

Something Else to consider wrote on Jan 5, 2008 3:46 PM:

" In regards to rate classes. WSI doesn't use industry standard rate classes. They have gone out and made up there own class system. Which I think is a problem. The other thing then when you start comparing what people in ND versus other states that is not a fair comparison because most states use an industry standard rate classification system not one that is made up to appease their own good. "

oz wrote on Jan 5, 2008 2:33 PM:

" To Ozboa,
No employer should be granted favorable rates or terms. Unfortunately you have highly successful business units that have seasonal cash flows. I have supported legislation to immediately cancel insurance of past due employers in the past. The problem is that it is politically unpopular. Can you imagine going into a smaller town like Wahpeton or Napoleon or Steel and closing a small to mid size agricultural business down for immediate non payment like privatized companies?

I have personal experience with sitting on Boards. You get calls from all over the map. As a board member you try to steer them to the right people. Yes, you do tell them to mention your name so that if the person who is taking the call will know how did this call get routed to me? I am not priviledged to the exact facts in the Dennis S example but I can tell you that board members are constantly called and advice is given out. One problem we do have in ND is that we do not have the full rate categories that private insurance use. I have had my industry companions complain to me that their rate classification is not representative of the work that is being performed. I told them to contact PHS to ask for a review of the classification for approval of adding a new classification if the work type deserves it. Whether or not is gets approved is up to PHS. If PHS feels it was unduly influenced is another discussion. If they thought it was undue they should have notified senior management immediatley. But every employer should have the right to question a rate classification. Either that or we should adopt the full NCCI classification which will create problems with classications with three employee statewide. "

oz wrote on Jan 5, 2008 2:13 PM:

" To Oz
I have a few opinions on benefits. First is using the state average wage as a cap for benefits. In my company the lowest paying job is $13 per hour. The average wage exceeds $50,000 taxable wage per year for the people that work in the highest wage classification which is about 80% of the staff. It is my opinion that the wage cap should be the higher of the state wage cap or 52 week previous wage of the claimant both reduced for taxes. In our case $50000 times 75% . Thus a workers comp weekly rate of $50000 times 75% divided by 52 = $721 per week. This is significantly higher than using the state average wage. But it would eliminate all the complaints about fair compensation. It would also induce more employer activity in regard to back to work programs. I am also against lowering the present PPI 15% threashold. History has proved huge abuse in PPI prior to the existing levels. I would modify dividend programs and experience rate calculations to correctly charge employers for their losses. The purpose of the experience rate is to correctly charge employers for their claims. If they have high paying jobs where people get injured they should appropriately have higher wage loss benefits. Rates and experience rates should reflect the payroll not the political process of giving low rates and dividends to everyone. No private insurer gives dividends to poor or high risk accounts. "

To Ozboa. wrote on Jan 5, 2008 1:49 PM:

" In addition to safe companies getting dividends lets say safe companies that pay their premiums on time. Unless of course they are on the board or have friends on the board, then give them dividends anyway. "

To Oz wrote on Jan 5, 2008 12:43 PM:

" Perhaps I took your comment out of context. My point is WSI can't make the argument that private companies will make huge profits at the expense of paying claims when analysis of their financial situation could support the argument that's exactly what they're doing. I agree with your analysis there's fat at WSI in excess personnel costs, questionable consulting expenses (audits, morale studies), and maybe even other areas that could be trimmed. Yes, smaller employers would see an increase in expenses (theoretically) unless skilled management could find other ways to keep premium costs low such as operational expense cuts coupled with more selective dividend distribution and maybe cuts in safety programs that may not be effective. WSI generated an increase to net assets in 2007 of $38,000,000 which translates to a lot of net income. The investment income on the surplus is growing rapidly. The focus is to return it to the employer. Is there balance? Is the benefit structure appropriate and fairly administered? Those questions should be answered first. Private companies would have regulation and competition to keep them in line. "

oz wrote on Jan 5, 2008 11:37 AM:

" To Oz,
I am not sure what point you were trying to make. On my comment regarding that private insurance companies were not in business to break even, it was a comment about premium rates for mid to small businesses. The minimum premium in ND is artificially low due to politcial pressure from very small businessmen. It is under $200. Minnesota minimum premium is somewhere between $750 to $1000 depending on classifications. Privatization will escalate the small business premium five to ten times what they are currently paying.

Another difference is that private insurance companies would spend the money needed for proper claim coverage. They would also terminate ineffective personnel. Artificially numbering the FTE's to keep biannual admin costs low is not solving the claims coverage problem. I agree that more employer premium dollars need to be spent especially in claims and safety. I am against blanket dividends to all employers even the poor safe and claim history employers. Only safe companies should get dividends. "

To Oz wrote on Jan 5, 2008 7:02 AM:

" Your comment that private insurance companies are not in business to break even: take a closer look at WSI financial statements. WSI is clearly very 'profitable' as the surplus is mushrooming upward. If those numbers were restated to resemble a private entity financial statement, you would eat your words. "

Barney wrote on Jan 4, 2008 8:00 PM:

" The Republicans may not have created the problem in the past on their own, but they sure are keeping the problem going by their actions in the last legislative session. For that we can say that Republicans are at fault in regards to WSI "

PO3to Real Tired wrote on Jan 4, 2008 3:03 PM:

" I found your piece right on, I agree with you and what you wrote. Good job. "

Kimberly wrote on Jan 4, 2008 1:05 PM:

" I agree - enough with what happened in the past. Take care of the current problem, and quit trying to muddy the waters. "

oz wrote on Jan 4, 2008 12:52 PM:

" From a large premium payers standpoint, there are only a couple of things wrong here. FIrst to all you who think privatization is the only answer, you are terribly wrong. We have half our employees in ND and the other have in five other jurisidictions covered by private insurance. The premium we pay for the other five locations is three times higher than the base premium before dividends. Second the claims management in ND is far better than private insurance. Third the acceptance rate of claims is worst because private insurance will deny claims at any hint of fraud, malingering, or failure to follow exact medical treatment plans.
Private insurance companies are not in business to break even. The only companies that will benefit from private insurance will be the large premium payers. The small companies will pay three to five times the ND premium.

The problem we have experienced with our fund is the poor leadership. I would rather have the executive director elected rather than appointed by the governor.
The governor appointees for the last twenty years have been no better than Blunt with one exception Pat Traynor. Look at them, Paul Cramer, Brett Edison,
Diane Alm, and finally Sandy Blunt. "

Real Tired wrote on Jan 4, 2008 11:49 AM:

" You folks need to stop for a little bit and take a look at the problem--this is not about he said she said or did ten years ago--this is about whats happening now in the well built building--this is'nt about who's paying the lowest possible rates--it's whats happening to your seriously injured workers an good employees inside wsi--these folks are being seriously mistreated-a seriously injured worker has to fight tooth an nail all the way threw only to be shot down in the courtroom-the employees also know-they themselves are now being told to shut up or starve they have seen what happens to whistleblowers--I'm sorry but more audits are'nt the answer and whats even funnier is that they say wsi is going to flip the bill -it's us that flips the bill-the only thing wsi is doing is lining their own pockets an finding more ways to deny claims-look at the picture wsi was in the governors hand an failed it's all by itself an has failed badly--do you really think that wsi had the injured worker in their mind when they built a bullit proof building-no they were planning on scamming everything the could from them-wsi stands for worlds sorriest illusion. "

this is true but what? wrote on Jan 4, 2008 11:34 AM:

" First, there is no such thing as a citizen of North Dakota. It's a resident of the state who happens to be a United States citizen. Sorry to be picky, but if we're being correct here, we should be, indeed, correct. Second, the bill that eventually came out of the session gave the Governor much more control over WSI. Granted, it does not make WSI a virtual subagency of the Governor's office, with only a single appointed "director" as it once was, which it appears some would prefer (never mind that it would pour more "politics" into a situation and place that needs less politics and more action and sound business principles). Third, and finally, the letter writer is correct. Democrats are simply playing partisan politics when it comes to the current form of WSI and fail to remember the fact that they, too have "blood" on their hands. The issue should not be who is at fault. It should be how do we fix the situation and make WSI an agency that better serves the workers and businesses of North Dakota. "

Economic Conservative wrote on Jan 4, 2008 11:12 AM:

" The blame rests with a corrupt and self serving legislaure, Dems and GOP alike. The ONLY way to clean this mess up is privatization. Why does that scare the polititians so much? For a Republican state, free enterprise is sure at a loss when you consider how much the polititians want to keep the money comming into the hands of government. "

Just Me wrote on Jan 4, 2008 11:01 AM:

" I believe there is enough blame and credit to go around for both parties. I'm with Put up, "I don't care if it's a Democrat or a Republican who leads the charge to fix this mess," JUST GET IT DONE! My wife and I have had firsthand experience with WSI and will be appealing their asinine ruling on her case if they ever get a fair and impartial hearing officer in there. She fell and crushed her kneecap at work but because of her osteoarthritis they called it a preexisting condition and denied payment. Even the doctors were dumbfounded by the ruling and supported my wife’s case but WSI denied the claim on appeal. As to Johh Hoven, I like him and think he has done many good things for ND. I won't vote for him again. Two terms is enough. After that I believe all incumbents become career politicians and begin to believe they are invincible and know what's best for “their” people so they won't listen. That is especially true of our three career politicians in DC. "

Lost wrote on Jan 4, 2008 10:34 AM:

" Well Eric, what is this law the Democrats pasted. Please give me the NDCC number. Or anybody else, I am wondering. "

Arteritus wrote on Jan 4, 2008 10:20 AM:

" Reality check--- If one claim is denied that should be paid then the system is not working. Don't forget your rights to sue WSI are gone. I would imagine the worker whose claim is denied probably doesn't think the system works. Eric Rinerson has the gall to blame the Democrats when its the Republicans that are expert at projecting the blame in N.D. and in Washington. "

Reality check wrote on Jan 4, 2008 9:39 AM:

" No ND employer would buy private coverage, because the rates would be too high, unless the company doesn't really provide coverage. That's the beauty of the state-operated system - the monopoly is actually very efficient at providing coverage at the lowest possible rate. All the scandals at the top don't change the fact that the system works. The one really significant complaint (ignoring the arrogance and criminal mischief of the WSI Board and top management) is that they deny claims inappropriately. That's just a day in the life at a private insurance firm. "

ND Native wrote on Jan 4, 2008 8:54 AM:

" I agree with both the author (as regards placing blame) and 'Put up' (as regards JUST DO SOMETHING). I still think the fastest way to fix this whole mess is to permit private insurance carriers to sell WC insurance in ND. If enough businesses then switched coverage from WSI, it would essentially render that whole agency moot. "

This is true but... wrote on Jan 4, 2008 8:29 AM:

" The very people you named and others have all acknowledged they have made a mistake and have tried to correct it by intorducing new laws that were shot down by the like of Hacker(who detroyed one of the bills so it was useless), Keiser, Wald and Kilzer. Maybe if they were truly interested in the well being of the citizens of ND they would have looked at this more closely during the session and did the right thing and held WSI accountable for it's actions instead of following the likes of Indvik and Blunt and said there is nothing wrong. Then on top of it they introduced legislation to give WSI a $50k slush fund. Why? So they could get more WSi paid trips that they don't deserve or so that Blunt and the cronies would give them special treatment? I've always said it takes a bigger person to admit they made a mistake than someone that keeps denying they made a mistake and that is what the Republicans are doing on this issue. I commend people like Joel, Merle and Tim Mathern that acknowledge they've made the mistake and now want to remedy it. I just wished the rest of the legislature would wake up before WSI put's ND in a very bad position with all its tactics and antics. Wait they are heading down that road quickly. Who do you think is going to end up paying for the lawsuits that are going to come out of this mess? Every ND Citizen "

Put up wrote on Jan 4, 2008 7:40 AM:

" Personally, I as a voter don't give a rip what happened 10 years ago. I don't care who voted for what. All I care about is seeing SOMEONE politically step up to the plate and offer a solution. Not the Keiser political games kind of solution, a real solution. I don't care if it's a Democrat or a Republican who leads the charge to fix this mess. Enough is enough. I, for one, will be casting my votes for CHANGE. If that means a change in party majority in ND, then so be it. "

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