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November 13, 1999 Tax Dollars Well Spent To the Readers: Recently, Missouri Employers Mutual Insurance (MEM), a public corporation providing worker`s compensation insurance, repaid its loan from the State of Missouri in full and on schedule. While this may not seem worth mentioning on its face, this was perhaps the most controversial use of taxpayer dollars in recent history. More importantly, it proved to be a huge success for Missouri employers and taxpayers. Before 1993, worker`s compensation costs for employers and taxpayers had increased dramatically for five consecutive years. Many employers, especially small businesses, were forced to go into a high risk pool funded by the taxpayers. That pool was growing at a rate of 17 percent with nearly $200 million in premiums. In 1993, the Missouri General Assembly had seen enough. Over the strong and vocal objections of the insurance industry and others, the state legislature agreed to a $5 million loan to set up an independent public insurance company to provide coverage for worker`s compensation for small Missouri businesses. The results speak for themselves. With new competition in the marketplace, the private insurers were forced to make their rates more competitive. Since 1993, rates have declined 23 percent. Missouri businesses are now paying $170 million less in premiums and 27,000 policyholders have been able to leave the high risk pool. While many have argued that the government should not compete with private industry, as far as I am concerned this was a wise use of tax dollars. I am certainly not an advocate of big government. However, ever so often, I believe the government has an obligation to step in and provide competition when private marketplace incentives fail. Missouri Employers Mutual Insurance is one very successful example and I applaud what they have done for Missouri`s taxpayers and employers. | |||||
Paid for by Kreider for Senator.
Bobby Neal Jr., Treasurer. Not at taxpayer's expense.
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