Officials with the West Virginia Workers’ Compensation division revealed plans reduce their operating expenses by $125 million to $136 million. According to the Charleston Daily Mail, the agency also intends to seek at least short- term increases in the premium rates employers pay and request certain legislative changes to keep the state Workers’ Comp Fund from going bankrupt.
The fund reportedly has a deficit of over $2.4 billion, which Gov. Bob Wise intends to separate from the agency’s operating funds. Wise wants to find ways to eliminate the unfunded liability without letting it affect the division’s current operations.
The division’s executive director told the Daily Mail he has a 24-month plan with monthly goals designed to eliminate the division’s ongoing operating losses, which amounted to about $215 million last year. The plan aims to have Workers’ Comp profitable within 15 to 18 months. One aspect of the plan is to restructure the division so it operates more like a standard insurance company.
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