Port of Hueneme grapples with rising cost of workers’ compensation insurance [Ventura County Star, Calif.]

May 14--The Port of Hueneme is preparing to pay 120 percent more for workers' compensation insurance, Manager of Financial Services Andrew Palomares said Monday.

"A lot of organizations haven't felt the pinch yet but it's coming," he said.

To deal with the rise, the port is considering a move to self insurance.

"We can look at self insuring the port but there's a lot of elements to that that have to be reviewed," Palomares said.

The port currently pays about $260,000 annually to Tolman & Wiker Insurance (formerly TWIW Insurance Services) in Ventura for its workers' compensation brokerage services.

Tolman & Wiker Risk Advisor Judy Diaz said it's the medical component of a workers' compensation claim that's driving costs higher.

The cost has risen for prescription drugs, surgical procedures, hospitalization and newer technologies, Diaz said.

"It's not an easy fix," she said.

Workers' compensation is one issue being looked at as the Port of Hueneme begins planning for fiscal year 2014. Its finance committee will consider a preliminary fiscal year 2014 budget on May 21. That will be followed by a 30-day public comment period and the final budget will be considered for adoption in July.

Capital budget items for the upcoming fiscal year include implementation of the shore side power system, harbor deepening, an upgrade to financial software and the pursuit of additional grant funds to support infrastructure projects. New marketing objectives are also in the works, including the development of a new website that will deliver digital port news and make use of social media.

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