States try to fix comp problems; Key cost drivers targeted by laws in several states

Six states--Illinois, Kansas, Montana, North Carolina, Oklahoma and Washington--passed major reform bills during the spring session, with some states taking aim at cost-cutting methods including controlling medical costs, while others looked at ways of making their workers comp system more self-administering. Republicans took over 680 legislative seats nationwide in November, which some insurance industry experts said provided for more business-backed support in the effort to reform workers comp systems. Some states are addressing some difficult problems that they've had and we've also seen some states that are less willing to address their problems, said Rita Nowak, vp of commercial lines and research for PCI. What we've seen during this past legislative session, though, is a change in proactive reforms that will eventually improve the workers compensation system overall.