Dive Brief:

• A recent study from Stanford University reports that 15 large Texas companies have saved significant dollars by opting out of the state workers' compensation plan and writing their own workplace-injury benefit plans, according to the Houston Press.

• While the researcher didn't release specific dollar savings by company, the employers in question reported 44% in cost savings on workplace injuries, when compared to company-owned facilities in states that do require workers’ compensation.

• Study author Alison Morantz told the Houston Press that the 15 companies collectively saved "tens of millions" between 1998 and 2010, but the savings may be coming at the expense of the injured workers, who often are not covered for injuries that might be covered within the state's workers compensation plan.

Dive Insight:

According to the article, Morantz studied the two states (Texas and Oklahoma) where employers have been saving under alternative arrangements and the outcomes for injured workers in those states. The article cites cases in which some workers receive no treatment, especially for things like pulled muscles or neck injuries.

The research is timely, as supporters of non-subscription plans are looking to add new states nationwide, including legislative efforts in Tennessee and South Carolina. Oklahoma's 2015 law allows companies to opt out but they must offer alternative plans with benefits equal to or better than the state’s system.

Just a few weeks ago, however, the Oklahoma Workers' Compensation Commission unanimously agreed that the alternative workplace-benefit plans some employers in the state are using happen to be unconstitutional. And, at the same time, the U.S. Department of Labor is investigating whether or not the alternative plans in Oklahoma and Texas cross a line when it comes to federal labor law.