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MTA Avoids Work Comp Third Rail
By Robert Warne - January 14, 2003

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MTA Avoids Work Comp Third Rail
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The Metropolitan Transit Authority (MTA) is looking pretty smug after it dropped its workers’ compensation costs by 14 percent in 2002, leaving Los Angeles city and county, and the Los Angeles Unified School District to wallow in their losses.

After it brought on New York MTA’s cost containment wizard Michael Koss and employed DuPont Safety Resources, MTA’s work comp expenses made a u-turn at $58 million and are headed for a 2002-projected range of $50 million.

The MTA board also attributes its decision to drop Travelers’ third-party services and move its self-insured claims operation in-house for creating significant cost saving benefits.

The MTA hopes it can use the immediate inertia from its claims saving trend to make a dent in the $6,000 price tag per employee per year it spends on workers’ compensation.

MTA is riding high from the positive results its safety programs have yielded when just last year it earned the dubious distinction of having the costliest workers’ compensation program for any transit agency in the nation.

All the good press surrounding MTA’s success must be ringing in the ears of its neighbors like a taunting bus horn breaking the silence of the night.

 
 

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