Workers' Comp Flagship Feasibility Study
NYBEST, a strategic partner of NYSASBO, has created a Study Group to perform a feasibility study for the creation of a Flagship Workers Comp self-insurance pool. The purpose of the Flagship Workers Comp is to provide sustainable savings for its members as well as become a model of best practices for other SBO administered workers comp pools/consortiums.
Initial research on cost comparisons among districts using an industry benchmark of “cost as percent of payroll” shows there are considerable differences across the state.
Findings from the analysis of five years of data from 685 districts included:
- The “all district average” cost as a percent of payroll ranged from 1.01% to 1.07% for FY14-16.
- In FY16, more than 200 districts had expense greater than 1.25% of payroll, while about 200 had expense less than 0.8% of payroll.
- On the basis of FY16 figures, if 100 districts with expense greater than 1.25% of payroll were able to achieve the all average district percentage, combined savings would be nearly $30 million.
The Study Group recognized that some factors may affect cost differently for districts, such as, variances in medical cost by region and whether the district employs bus drivers and food service staff or has a unique operation. The analysis showed that many districts with the highest cost as a percent of payroll are found in low cost environments and vice versa, low cost was achieved by many in high cost areas.
We encourage you to fill out the workers’ comp survey by clicking here (doc). This enables us to provide additional analysis and better describe potential benefits for your district and others.
A recording of a webinar that further explains the feasibility study can be found here.