ZIEGENHORN HAPPY WITH BILL STALLING INSURANCE COSTS

SIKESTON - State Rep. Dennis Ziegenhorn said Saturday he is pleased with a bill that will be offered this week to help curtail the skyrocketing costs of workers compensation insurance in Missouri.

"We're just looking for anything we can to get these costs under control," said the Sikeston Democrat.

Over the last year, workers compensation rates have climbed about 38 percent. The National Council on Compensation Insurance, the organization that recommends rate increases to the state, is suggesting another increase of around 20 percent is in order for this year.

Ziegenhorn, as chairman of the House Insurance Committee, and Rep. Jim Riley, D-Richmond Heights, chairman of the House Labor Committee, co-chaired the House side of a joint committee that held hearings around the state last year on problems with workers compensation insurance.

Ziegenhorn said the House members of the committee have drafted a bill that will be offered as a substitute for another bill in the labor committee this week.

The measure will be used as a substitute for a bill sponsored by Rep. Larry Thomason, D-Kennett, that puts a cap of 12 percent for workers comp premium increases.

One component of the substitute bill, which will be handled by Riley, and includes Ziegenhorn as a co-sponsor, will be to freeze rate increases for one year.

The Senate members of the joint committee, chaired by Sen. Henry Panethiere, D-Kansas City, are not inclined to push a major bill this year, Ziegenhorn feels.

Ziegenhorn explained that Panethiere is serving on a blue ribbon commission from the National Conference of State Legislatures and does not want to take any major action until after their findings are made in May. Senate members do, however, favor freezing rates.

"I just don't think we can wait until May when they make their recommendations," said Ziegenhorn. "We are totally in disagreement over doing things now.

"I think this is one of the most important issues that can be taken up in the session this year. If you talk with employers, it is clear that this is a crisis and we need to do something this year."

All employers in Missouri with five or more employees are required to have workers compensation insurance.

Besides freezing rates, another part of the House bill will be to allow hospitalization insurance to serve as the primary medical coverage for workers compensation claims. This can only be done on company health insurance plans.

"This has been tried in other states and seems to be working," said Ziegenhorn. "This will exclude a lot of problems and administrative costs on job related injuries."

Ziegenhorn said this option might increase health insurance rates slightly, but in the long run will likely save employers money and could be an incentive for employers to provide health insurance.

The bill also provides employers the option of taking a $500 or $1,000 deductible for workers comp, and could even go as high as $10,000. But any deductible above $1,000 requires the employer to be secured with a bond in the Department of Insurance.

Stressing safety will be a major component of the bill, according to Ziegenhorn.

"It has been proven that insurance companies that give safety tips are definitely keeping claims down," he noted.

The bill would provide for the Division of Workers Compensation to have staff to assist businesses in making their workplace safe. Now, if a company wants a safety check, it often takes the division two years to comply, Ziegenhorn said.

The legislation also provides an improved system for businesses to appeal their classification and will give the 20 workers comp administrative law judges some administrative powers to set up rules that will speed up the hearing process and eliminate many of the continuances that are slowing down the process.

Ziegenhorn said he is especially pleased that the bill is coming out to the labor committee, which in the past has tended to focus more on increasing benefits rather than solving the overall problem of increasing costs to employers.

"I'm real happy with the bill and a little bit surprised and happy that it is coming out of the labor committee," said Ziegenhorn. "I think they understand the problem we are in. They understand that if we don't get something solved soon, we won't have any employers to provide jobs."