Notice of Legal Challenge to OML's TPA Transition
May 4, 2018
Due to the decision of the Board of the Ohio Municipal League (OML) to sever our relationship with CompManagement and enter into a contract with CareWorksComp, CompManagement has filed suit against OML. A conference hearing concluded yesterday, and I wanted to provide you with an update.
As we've previously communicated, OML has selected CareWorksComp as its new TPA for the employer group rating programs. On April 27, 2018, CompManagement filed an action seeking injunctive relief against OML in the Franklin County Common Pleas Court. CompManagement gave notice of this filing to OML late Sunday afternoon. The case was assigned to Judge Guy L. Reece, II.
There have been two conference hearings conducted before Judge Reece. A decision is expected in the short term as to certain preliminary and interim issues. The case will not likely be resolved for a substantial period of time.
Among other tactics, CompManagement is attempting to move participants/employers from the OML groups to other groups not affiliated with OML. CompManagement also asserts that for Workers' Compensation purposes, it owns many of the members of OML group. Thus, it is essentially asserting that most of our municipalities are the property of CompManagement.
We believe otherwise. OML members are free to choose their group, and we believe the OML deserves your confidence and continued participation in our group rating pool in order to ensure you continue to receive the very best discounts and customer service.
Our attorneys, who have been representing our interests in court, are very concerned about tactics used by CompManagement. We believe they are intended to create, among other things, confusion and are attempting to thwart OML's selection of a new vendor.
We hope that the court agrees with our defense that municipal employers control their own management rights, and that the OML reserves the right to endorse the TPA we believe provides best service and rate stability in the market. We will continue to keep OML members apprised of future court action.