WORKERS' COMPENSATION INSURANCE POOL BRINGS DIVIDENTS TO COUNTIES

A Missouri Association of Counties insurance committee chaired by Cape Girardeau County Clerk Rodney Miller has distributed $450,000 in workers' compensation dividends to officials of 71 counties.

The checks ranged from a high of $86,286 to Jefferson County to $8,851 to Cape Girardeau County and $821 to Worth County in northwest Missouri.

The dividends represent 14 percent of the participating counties' 1992 premiums paid to MAC's Self-Insured Workers' Compensation Fund.

Miller has been chairman of the insurance committee since the fund's inception in 1987. Miller said the concept was developed to help counties work together to save money. This is the first time counties have been given a dividend, but Miller said there is a good possibility of another one next year.

Not only do counties have an opportunity to receive a dividend, in most instances being part of the insurance fund gives them coverage at a lower rate.

"The key is that the member counties' dollars reserved to pay claims are sitting in their account," said Miller. "What generally is a profit incentive for an insurance company is now a profit incentive for the counties who belong to the pool.

"The whole idea of a pool was a new idea when it came about: to have counties working together to save money. It was an innovative program at the time and a chance to work together statewide for all counties to receive real benefits."

MAC's insurance pool operates much like a regular insurance company and is regulated by the Missouri Division of Workers' Compensation. It collects $4 million in premiums each year.

As part of the insurance program, counties have placed an intense effort on safety in the workplace. Miller said the fund's insurance carrier reports that 85 percent of all accidents are caused by unsafe acts and that 15 percent of the accidents are caused by unsafe conditions.

Miller said in the past the emphasis has been on unsafe conditions, because they are easy to spot and correct. "Now we are dealing with the 85 percent bigger concern. We want accountability. If you see someone working improperly, how do you instruct him? We're going for managed loss control."

As the effort to improve safety in the counties continues, Miller said there will be greater savings to counties and taxpayers through reduced premiums, discounts and refunds.

"What we are really talking about is the return of taxpayer dollars to Cape Girardeau County and 70 other counties in the state. Just imagine the services that will be improved with nearly a half-million dollars that have been refunded," said Miller.

He said one of the goals of the program is to help improve public perception of county government. "It would be far more beneficial for a county to be commended by the media for implementation of a safety program than to be chastised for a serious, preventable accident," said Miller, a former president of the Missouri Association of Counties.

"Also, a sound safety program is management's way of showing honest concern for the wellbeing of its employees."

The fund now has participation by 80 of Missouri's 114 counties.