The fund can apply a surcharge of up to 75 percent on employers in the residual market with poor safety records. Both the fund and private insurance carriers can establish separate, lower premium schedules for employers they believe to be good risks. Rate deregulation thereby reinforces the statutory emphasis on worker safety. The Oregon reform requires employers with 10 or more employees to set up a worker-management safety committee. These committees make employees safety-conscious and put pressure on employers to invest in safety.
Inspections target employers with the worst safety records.
The state offers voluntary safety consultations and safety grants to employers. With deregulated rates, insurers now compete vigorously for business on the basis of safety. The largest private carrier, for example, makes the case to potential policy holders that its safety experts will work with the employer to reduce accidents and ultimately to reduce costs below current levels. It has also encouraged groups of smaller employers to buy group coverage. Wisconsin has long had a reputation as a model workers compensation state, combining low cost to employers with reasonably high worker benefits.