The Oklahoma Option – #OkOption

by Steve Wilson

2000px-Flag-map_of_Oklahoma.svgWith the passage of Oklahoma Workers’ Compensation Reform (Senate Bill 1062) in 2013 came a great opportunity for Oklahoma employers to gain control over their workers’ compensation program, by combining it with their group medical benefit plan to create one 24-hour plan.

The Oklahoma Option  allows employers to develope their own ERISA alternative risk programs replacing traditional workers comp coverage.  You no longer need separate medical and workers compensation policies, because we develop a single source plan with single source administration for both.

Why Choose OkOption?

Employers are choosing the Oklahoma  Option for a variety of reasons, including:

ControlUnder the OkOption, employers use the long-standing Federal ERISA law to determine the process & venue for handling disputes, rather than being obligated to the traditional Oklahoma Workers’ Compensation system as the means for resolution

Costs First, by combining the administration of both your Medical & Work Comp plans, fixed costs drop significantly. Second, stop-loss insurance used for medical benefits places greater weight on severity, so rates are based on the potential for large claims, not frequency of claims.  Third, by partially self-funding, employers eliminate most of the premium taxes, carrier profits, and other exisiting inefficiencies.  This is one of the most attractive benefits for employers.

Benefits Most groups typically design their OkOption Plan to not only meet the statutory requirements, but to also provide enhanced employee benefits.

Accountability Under the OkOption employers design their plans to require quicker notice of an injury, prior authorization for treatment, use of network providers and compliance with treatment in order to keep the employee accountable for participating in their recovery.  Eliminate the possibility of double-dipping between medical and workers compensation claims.

One Plan – Your Plan

The OkOption Plan document has been designed by experts to meet the requirements of the OID.  But this is Your Plan, so you determine the medical benefits.   Through a combination of self-funded, partially  self-funded and fully-insured coverages, you have the flexibility to choose a level of risk with which you are comfortable.

Who is Choosing OkOption? 

The OkOption Plan is best-suited for companies with 50 or more full-time employees and:

  • Employers moving from fully-insured plans will most-likely see the greatest savings in the first year, but all will reap the benefits that come from improved efficiency.
  • Employers who are financially sound and willing to assume some level of risk.  The Oklahoma Insurance Department will review the application and can require a letter of credit as a condition for approval.
  • Employers who want to offer fair and reasonable benefits, without the variables currently found in the Oklahoma Workers Compensation System, the excessive profits charged by carriers, and the carrier practice of holding reserves or paying claims, regardless of legitimacy.

If you and your company can benefit from lower costs, better employee benefits, and greater employee accountability, we would like to meet with you.  Provide us your contact information and our OkOption specialist will prepare a custom OkOption Plan for you.

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