Early in her administration, State Treasurer Denise L. Nappier appointed a Blue Ribbon Commission, made up of actuarial, fiscal and insurance experts, and hired an independent auditor to audit the Second Injury Fund’s budget assumptions. After a comprehensive review of the Second Injury Fund operations, the Blue Ribbon Commission returned to Treasurer Nappier with news that her reforms had reduced fund costs and eliminated the need to increase assessment rates to businesses.
The Blue Ribbon Commission cited some key changes due to Nappier’s reforms:
- Accurate caseload assumptions, which revised downward the number of cases forecast to be transferred to the Fund by nearly one third;
- Development and implementation of uniform settlement practices, resulting in a 12% reduction in settlement costs;
- Projected savings from implementation of operations improvements;
- Recovery and projected recovery of past due assessments from insurers and self-insured employers;
- Increased assessment revenue as a result of post-audit compliance;
- Revised debt assumptions and an alternative settlement financing plan, which together provided $485.3 million in savings during the life of financing plan.