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Free Market

Privatization works for West Virginia

August 4, 2013

Privatization of workers’ compensation has paid off for West Virginia employers — to the tune of nine consecutive years of reduction in loss cost....

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(29)

AaronS

Aug-06-13 11:21 AM

Actually I drive a company car. As for who does the plowing, why would that not be part of a maintenance contract. I'm sure a private company wouldn't bring drivers in to work 24 hour shifts because they've had a mild winter and they need to use their budgeted funds less they be punished the next year.

And I can't help but not that you failed to discuss any experiences when encountering state DOH employees? I'm I to assume that Neo is the only individual that hasn't witnessed employees holding shovels up?

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neocurmudgeon74

Aug-06-13 11:09 AM

AaronS makes good points about paving, but hasn't addressed who plows the snow? I'm guessing Aaron drives a jacked-up 4WD truck w/ a winch.

I suspect that if you "eliminate every garage" by putting the property up for sale, most of them will be purchased by the very companies winning the bids to do the work. Like the State liquor stores became private party stores.

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AaronS

Aug-06-13 10:50 AM

I'm not sure if you're familiar with the bridges over Middle Island Creek in St. Marys but a few months back, the DOH paved the southern abutments on both sides of route 2. It took 57 employees to complete approximately 2500 square feet of pavement. A private company could have completed the same project with 8-10 people.

How many projects have you came upon where 2 to 3 state employees were standing around doing nothing for every employee who was actually working?

That type of waste and the equipment needed to staff the garages would save taxpayers hundreds of millions of dollars and would eliminate the need for tax increases needed to fund infrastructure projects.

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AaronS

Aug-06-13 10:38 AM

What would I privatize with the DOH? I would eliminate every garage, lay off all those who work there and bid out the general repair and upkeep those employees are responsible for. Force them to get payment approval for all work done from DOT Engineers, which could be adequately compensated for the work they do and the cost would decline tremendously.

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neocurmudgeon74

Aug-06-13 10:03 AM

But what exactly would you privatize, & how is it to be done? Are private companies to buy all the highways & charge us toll to recoup their investment? That's not impossible; the State would have to require every licensed vehicle to have a satellite tracking device. Or do you mean that the private companies would be paid by the State to plow snow, pull ditches, patch potholes, pick up roadkill, etc.?

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AaronS

Aug-06-13 8:46 AM

You are mistaken Suttle. Charter schools are not privatization. Charter schooling is an alternative educational system where the school receives public funding but isn’t constrained to the state Board of Education. It’s never been done in WV and the reason for failures elsewhere is debatable. If you want to talk privatization in education, that model has been extremely successful as private school students routinely score higher not only on state standardized testing but national testing as well.

As for water, the cost may be higher but so is the quality. Despite your claim. other than the military and oversight agencies, I’m not sure what government agency wouldn’t be better off privatized. I’m sure there are some but I can’t happen to think of any off the top of my head. What I do know is that much of the DOH (note I’m not saying the DOT) is one agency that would benefit taxpayers were it privatized as much of the work done by ‘garage’ employees is wasteful.

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Suttle

Aug-05-13 11:26 PM

AaronS, their is no such thing as a free market. While privatization of workers comp has had a positive result, that does not mean that all public services will prove to be cheaper by being privatized. Examples that have not worked out well are charter schools. When taken as a whole, charter schools have not performed all that different from public schools. Another example is the privatization of public water systems in West Virginia. The cost of treated water has gone sky high since being sold to a private company. Both the public and private sectors have issues that work for and against a successful government driven outcome. The public sector is also hampered by lobbyist and politicians trying to get re-elected, while the private sector is driven by making a profit regardless of the consequences.

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Suttle

Aug-05-13 11:26 PM

AaronS, their is no such thing as a free market. While privatization of workers comp has had a positive result, that does not mean that all public services will prove to be cheaper by being privatized. Examples that have not worked out well are charter schools. When taken as a whole, charter schools have not performed all that different from public schools. Another example is the privatization of public water systems in West Virginia. The cost of treated water has gone sky high since being sold to a private company. Both the public and private sectors have issues that work for and against a successful government driven outcome. The public sector is also hampered by lobbyist and politicians trying to get re-elected, while the private sector is driven by making a profit regardless of the consequences.

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AaronS

Aug-05-13 7:09 AM

You can deny all you want Dennis but nothing changes the facts regarding how much better the comp program is running under privitization.

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denver

Aug-05-13 5:12 AM

And What is the title to the articles your talking about, if you know? there little buddy!

Id say you're just making up that workers compensation fund was $2.4 billion in the red when Capertin took office in 1989.

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AaronS

Aug-04-13 8:03 PM

I'm not scooter, I'm little buddy. Are you so dim witted that you really can't remember your own failed attempts at insulting me?

And I told you where I got the info. What about it did you not understand?

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denver

Aug-04-13 6:45 PM

And so what "scooter" I'm still wanting on how you came up with the workers compensation fund was $2.4 billion in the red when Capertin took office in 1989.

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AaronS

Aug-04-13 4:40 PM

There is ZERO doubt among everyone with an IQ above 17 that Workers Comp is better off under private direction than it ever was under government control.

As for my comments regarding the DOH, read the last paragraph scooter.

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denver

Aug-04-13 3:05 PM

And Id say how workers compensation got in trouble in the first place was mismanaging it, by incompetent state leadership! And not Over regulation and micromanaging by "incompetent state employees".

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denver

Aug-04-13 2:58 PM

This article is not about the West Virginia Division of Highways, It about workers’ compensation, so again What is the title to the articles your talking about, that said we were$2.4 billion in the red in "workers’ compensation" when Capertin took office? If you know?

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AaronS

Aug-04-13 2:46 PM

And I told you how got in trouble to begin with but you want to lay it all at the feet of Arch Moore. As such, you cannot admit that workers comp operates much more efficiently after privitization than it ever did when it was under government control. So would the Department of Highways. Perhaps if our legislature would recognize that fact, the money being wasted across the state on the bloated DOH could be better utilized repairing and upgrading our infrastructure.

Don't you agree Dennis!!!!!

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denver

Aug-04-13 1:15 PM

As for "do you not agree .........."This is what I wrote "This editorial doesn't tell the whole story, like how did workers' compensation get in trouble in the first place. Maybe "AaronS" could find out for us?" now you figure it out! And What is title to the articles your talking about, if you know?

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AaronS

Aug-04-13 1:03 PM

Let's see. There was some testimony by Richardson in an IL lawsuit regarding fraud and waste, an article in the State Journal, one in the Gazette and some information from the Caperton administration during his first term. It's all out there for the independent thinker willing to look.

I wonder though, do you not agree that the state of West Virginia's comp fund is in much better condition given that "Overall premiums have dropped 30.3 percent, or more than $150 million, 198 different workers’ compensation insurance companies have filed rates and forms, Of those 198 companies, 154 have active workers compensation policies in the voluntary market. There are 120 policies in the residual market representing premium of about $1.9 million and more than 90 percent of all claims are ruled upon within the first 30 days."

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denver

Aug-04-13 12:37 PM

Where did you get that information from?

I'll await your reply.

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AaronS

Aug-04-13 11:52 AM

By your admission Dennis, Moore's actions cost the fund $504 million. While I'm not agreeing with your anecdotal comment, the fund was $2.4 billion in the red when Capertin took office. That's almost $2 billion if fraud, waste and mismanagement, which brings us full circle.

Anything else?

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denver

Aug-04-13 11:36 AM

"With wages and medical benefits increasing, how could you cut revenues and expect to survive?" And Moore made other deals, too. He allowed dozens of underfunded companies, particularly (coal companies,) to become (self-insured) and stop paying premiums altogether. When those companies collapsed, other state employers got the bill.

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denver

Aug-04-13 11:32 AM

Like I said there little buddy Moore's third term was only 4 years and it ended 1988, what year did they Privatize workers' compensation?

I'll await your reply.

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AaronS

Aug-04-13 11:09 AM

I'm sorry, that should have been $2.4 billion, not trillion. I do wonder though dennis, even had Moore not cut premiums and collected the full 504 million you claim led to problems, where was the other 2 billion going to come from?

I'll await your reply.

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AaronS

Aug-04-13 10:37 AM

You mean Richardson, the former head of the WV Compensation Agency. The head that led to agency to an unfunded liability of $2.4 trillion. The liability that led to privatization of the fund?

Yeah, he's credible.

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AaronS

Aug-04-13 10:37 AM

You mean Richardson, the former head of the WV Compensation Agency. The head that led to agency to an unfunded liability of $2.4 trillion. The liability that led to privatization of the fund?

Yeah, he's credible.

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