Large companies can opt out of the Workers Compensation State Fund system by insuring themselves. But some small and medium-sized businesses believe they should be allowed to form associations to provide their own coverage. This is called group self-insurance. But this would also give employers incentive to underreport or try to deny injury claims by their workers. Group self-insurance sets a dangerous precedent that would lead to dramatically increased premiums for employers who remain in the State Fund and could lead to the collapse of the entire system.
Labor believes there are already enough financial incentives for maintaining safe workplaces.
There is no reason to open the door to fraud and abuse, and put the entire State Fund at risk, with group self-insurance. 1995 HB 1275 and 1451 would have allowed group self-insurance. Passed House, died in Senate. Passed House, died in Senate. Passed, vetoed by Governor.