WCB Admin Costs Skyrocket!

How well is the WCB taking care of the money collected from employers through assessment charges?

Not very well at all, according to the WCB's own annual reports. The WCB's administration costs rose from $22.6 million in 1999 to a whopping $43 million in 2006. The number of registered claims dropped from 35,010 to 31,810 during the same time period.

To put these figures into better perspective, the administrative costs per registered claim in 1999 was $645.53 per claim. The 2006 numbers are doubled. In 2006, the administrative cost per registered claim is $1351.78. Registerd claims are dropping but WCB admin costs are rising. Why?

Yet, WCB CEO, Nancy McCready Williams has been publicly slapping herself and the WCB on the back for having such wonderful successes in reducing workplace injuries and decreasing claim durations. Shouldn't these successes be reflected in the bottom line?

If Nancy is saving money by returning more injured workers to work in a shorter period of time, one would expect administrative costs to be lower. From 2005 to 2006, WCB administrative costs rose by 12.86%. The number of registered claims decreased by 7 % during the same time period.

WCB administration costs have been steadily increasing. $24.5 million in 2001, $26.5 million in 2002, $28.2 million in 2003, $31.7 million in 2004, $38.1 million in 2005 and $43 million in 2006. Meanwhile, the number of registered claims each year is consistent. 34,701 in 2001, 33,874 in 2002, 33,674 in 2003, 34,166 in 2004, 34,017 in 2005 and 31,810 in 2006.

Why is it costing the WCB, and ultimately the assessed employers, more and more money each year to administer the same number of injury claims?

The WCB has been harping to employers and workers on the need to reduce the unfunded liability. Why is it the WCB has not taken measures to reduce their own costs? Stakeholders deserve a WCB that is accountable and fiscally responsible.

Are Nova Scotia employers receiving value for their dollar?

Your email comments are welcome.

Until next time,

Stakeholder