Jan 30, 2007 By Amy Zalar 3 min read

Although Fayette County’s annual worker’s compensation premium decreased more than $50,000 this year compared to 2006, the Fayette County commissioners are requesting proposals for the service because the annual cost rose more than $300,000 in three years. At the monthly meeting, the commissioners unanimously voted to advertise for bids for companies to provide worker’s compensation insurance, and also to possibly terminate the agreement between the county and the County Commissioners Association of Pennsylvania (CCAP), which currently provides the insurance.

The action was initiated by Commissioner Vincent A. Vicites, who said he believes it would be a “good idea to do a competitive situation.” Vicites first broached the subject last December, and since that time Fayette County human resource director Jim Moore has determined the earliest cancellation date for the current policy is Jan. 1, 2008, and notice must be given by Sept. 1, 2007. “I’m just trying to find a way to keep costs down,” Vicites said, adding that the premium went from $200,000 to $500,000. “There is no greater expense that has increased more,” he said.

According to Moore, in 2003, the premium was $206,000. It jumped to $253,000 in 2004; climbed to $416,000 in 2005 and increased to $551,000 in 2006. For 2007, the annual premium dropped to $498,000, Moore said.

Moore said the rates are based on claims from two or three years ago. He said insurance companies look for trends before dropping or raising rates.

While the rates did drop this year, Moore said it would only take one major incident for the rates to increase again.

Commission Chairwoman Angela M. Zimmerlink commented about how the issue has been handled so far. She said when the issue first arose, she thought Moore would check with either CCAP or Bill Rittenhouse, the county’s local agent, regarding the current policy. However, she said Moore first consulted with Excalibur Insurance and Mike Doyle, before checking with CCAP. She initially urged holding off because notice has to be given by September, and the insurance rates tend to go in cycles.

County manager Warren Hughes said preparing the information would be a “time-consuming situation.”

Moore said a lot of data will have to be collected, but it is very possible the county may be able to get lower rates.

Hughes said work on the process would have to start immediately, because bids must be received by July. “If not, we won’t have enough time. We have to set up interviews,” Hughes said.

After hearing that it would be possible to complete all the legwork in anticipation of changing providers if a better rate is discovered, Zimmerlink voted in favor of the motion, along with Vicites and Commissioner Joseph A. Hardy III.

Although the agenda also listed a motion to advertise for proposals for an insurance entity to act as the agent between the county and CCAP, the commissioners tabled action on that matter.

Zimmerlink said although she thought it would be a good idea to seek an agent, it may be detrimental at this time to Moore and Hughes as they go through the process of seeking bids for a new insurer.