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Drexel Heights warns of steep workers’ comp rate risk as state bills advance
Summary
Chief Douglas Chappell told the board the district faces budget uncertainty after insurers shifted and Arizona bills under consideration — including S1160 (cancer presumption) — could raise workers’ compensation premiums sharply; carriers warned of increases up to 170%, and staff is evaluating options.
Fire Chief Douglas Chappell told the Drexel Heights board on Feb. 28 that pending state legislation and recent insurer market changes are creating substantial uncertainty for the district’s FY2021 budget.
Chappell summarized three bills under review in Phoenix — S1398 (Tax Omnibus), H2823 (Interfacility Transport), and S1160 (Cancer Presumption) — and said the district is tracking possible impacts. He told the board that CopperPoint has withdrawn from the workers' compensation market for fire agencies and that the district’s current comp carrier, identified in the memo as “7710,” has indicated premium increases could be as high as 170%, leaving the budget “in flux” while staff looks at options.
Board members received the district’s written monthly report that expands on legislative developments and insurance exposures. Chappell and staff said they are working with the district’s insurance representative and carrier to preserve coverage, to explore cooperative procurement with nearby districts and to identify cost‑mitigation options. The district is also coordinating with the Arizona Fire District Association and other local agencies on responses to proposed statutory changes.
The board did not take a formal vote on legislative positions at the Feb. 28 meeting; Chief Chappell said staff will return with more detailed budget projections and options for the board’s review as the FY2021 budget process proceeds.
