OMA Testifies Against Workers’ Comp Self-Insurance Proposal

This week, OMA member Cathy Duhigg Gannon, Manager, Workers’ Compensation, Eaton, testified on behalf of the OMA Safety and Workers’ Compensation Committee before the House Insurance Committee against House Bill 268. The bill proposes, among other things, to create a new, higher risk Ohio Self-Insured Guarantee Fund.

In her testimony Duhigg Gannon said, “By lowering the credit threshold to Ba2, Ohio would be allowing companies with non-investment grade financials to be considered for self-insurance for the first time ever, which in turn would create a much weaker guarantee pool. This is a major risk for any company that would become part of the new “B” fund and likely as well for the state of Ohio, as in the event of cash constraints or bankruptcies during a financial downturn, these sources would be called upon to finance claims in the system as well as claims yet to be filed against these defaulting self-insured employers.” 12/14/2017