Stanford Study Finds Texas Nonsubscribers Save 44%

A law professor at Stanford University says her study of 15 employers in Texas who provided workers with alternative work injury insurance benefit plans cut their costs nearly in half when compared to employers that participate in the state’s workers’ compensation system. “As economic theory would lead one to expect, nonsubscription generated considerable cost savings,” Alison D. Morantz writes in a study published Friday. “My preferred estimates suggest that costs per worker hour fell by about 44%. These savings were driven by a drop in the frequency of more ser...