One of the main things, and one of the things we can actually fix, keeping businesses from locating in West Virginia is our high workers comp rates. Let's face it when you choose a place to locate your business you go to the place with the lowest prices.
I can look out the window across the river into Maryland, and about 2000 feet away is substantially lower workers comp rate for my business. However I believe in keeping everything in my home state, so I stay, even at a competitive disadvantage.
Now July 1, 2008 Brickstreet will no longer be the only game in town, but their is an issue tied to that. I will get to that in a minute. Right now Brickstreet is a government created monopoly, and most businesses in West Virginia have been receiving increasing rates from Brickstreet. We have no choice, but to pay them or cease operations. It is nothing more than government sponsored extortion.
What upsets most of us business owners is the fact that Brickstreet is advertising. Why? Nobody can compete with them by law. Why do you need to advertise when you're the only game in town by law? That is just wasting money of the owners of Brickstreet and hurting its clients. We pay higher rates to cover needless advertising!
Now on July 1st, 2008 other companies are allowed to offer workers comp insurance, but their is a catch. The competitors are only allowed to price 5% lower than Brickstreet. This is nothing more than price supports for insurance.
Price supports do nothing more than cost consumers more money. Only the Free Market gives the consumer the best price. These price supports are nothing more than corporate welfare for Brickstreet. They will keep wages lower in West Virginia, because if they company has to pay more for insurance, then that is less they can pay the employee.
We must open up Workers Comp up to real competition in the state, so that we can all benefit and not just the fat cats running Brickstreet.
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