KEY COMPONENTS ARE IDENTIFIED IN THE NEW WORKERS' COMP LAW

The Missouri Chamber of Commerce and Associated Industries of Missouri have identified several key parts of the new workers' compensation reform law that they believe will have a positive impact.

The two business organizations both agree that some parts of SB-251 will reduce costs, but on more of a long term basis, leaving businesses without needed immediate relief.

Under SB-251, the definition of an accident and occupational disease is re-defined to say that "an injury is clearly work related if work was a substantial factor in the cause of the resulting medical condition or disability." Though stronger than language included in last year's bill, the language is not as strong as business leaders had proposed, such as one in Arkansas where the workplace "shall be the major cause of an injury."

Within the Division of Workers Compensation a fraud and non-compliance system is being established. The bill outlines actions that are considered unlawful, and investigations conducted by the new unit can be forwarded to the attorney general's office for action.

Employers and insurance companies are allowed to use medical managed care organizations to help control medical costs.

A mutual insurance company is created under the bill to offer affordable workers' compensation coverage for small to medium employers. The bill also establishes open competition premium pricing that will help employers with low claims experience. Currently, rates are recommended to the Department of Insurance by the National Commission on Compensation Insurance.

The legislation creates a detailed injury and loss data collection system, where workplace injury patterns can be identified and addressed. It also requires insurance companies to provide instruction on safety to employers.

The measure also establishes the use of mediation prior to the more formal, litigated administrative hearing process for the resolution of workers' comp claims.

The bill corrects the inequality of part time employees from being only paid compensation benefits based on their part time employment, if the injury prevents them from returning to their fulltime job. The Second Injury Fund will pay the difference between the benefits calculated on part time and the combined part time/full time income remuneration.

It requires the re-design of the assigned risk pool to better serve the needs of those insured through the residual market plan.

In dealing with the Second Injury Fund, the bill limits entry into the fund by injured employees without serious injuries.