The Oklahoma Option

The Oklahoma Option allows qualified employers that meet certain injury benefit and financial security requirements to exit the workers’ compensation system and sponsor their own injury benefit plan.

An Option benefit plan must provide for payment of the same forms of benefits included in the Oklahoma workers’ compensation system for temporary total disability, temporary partial disability, permanent partial disability, vocational rehabilitation, permanent total disability, disfigurement, amputation, or permanent total loss of use of a scheduled member, death, and medical expense. In exchange for paying the benefits required by statute, the employer is entitled to “exclusive remedy” protection against negligence liability lawsuits, similar to employers that provide workers’ compensation insurance.

Oklahoma Option Fast Facts

  • Active employer participation since 2014 (authorized by the 2013 WC reforms).
  • Over 60 employers have qualified since reform has been implemented.
  • Approximately 22,000 workers are covered by injury benefit plans.
  • OK Insurance Department reports a cumulative 37.2% drop in loss cost/rates since enactment of 2013 reforms.
  • Initial data shows claims costs for employers have also decreased by over 50% under the Oklahoma Option (on top of above reduction).

Oklahoma Option - Analyses and Reports

  • Oklahoma Performance Report (2016)
  • The Dillard’s v. Vasquez ruling is a shame. We’re taking time to analyze the court’s decision and invite you to take a look at just how successful the Oklahoma Option has been.