JEFFERSON CITY— To help revive the currently
insolvent Second Injury Fund and address thousands of stalled
claims and settlements, SB
1, sponsored by Sen. Scott T. Rupp, R-Wentzville, received
first-round approval in the Missouri Senate. With one more affirmative
vote from the upper chamber, the bill will be sent to the House
for its consideration.
The Second Injury Fund is designed to
assist injured workers when a current work-related injury is
combined with a prior disability, creating an increased combined
disability. The fund is appropriated by a surcharge employers
pay on workers’ compensation insurance premiums. In 2005, the
General Assembly passed legislation permanently capping the
surcharge rate at 3 percent. With the onslaught of the 2008
recession, however, unemployment rates grew and workers’ compensation
premiums fell, bringing in less revenue for the fund. On Jan.
11, the state auditor released a report stating the fund has
unpaid liabilities totaling more than $28.1 million and has
no existing means to pay the benefits.
Senate Bill 1 states
that occupational diseases are exclusively covered under workers’
compensation laws. Claims would follow a two-tier system under
the bill; one category lists diseases such as asbestosis, bronchiolitis
obliterans, acute myelogenous leukemia, and Myelodysplastic
syndrome. Missourians who have diseases in this tier would receive
an enhanced remedy of $150,000. The second category for occupational
disease addresses mesothelioma. Missourians with this disease
would receive an enhanced remedy of $600,000. Individuals would
still receive their central workers’ compensation benefits.
Also, claims for permanent partial disability
would not be allowed against the Second Injury Fund after the
effective date of SB 1. Claims for permanent total disability
would only be allowed to go forward for instances when a Missourian
has a medically documented, preexisting permanent disability
caused by military duty, or in certain cases when a preexisting
permanent partial disability exists.
In addition, SB 1 would, upon approval of the director of the
Division of Workers’ Compensation, increase the surcharge rate
that finances the fund up to 4.5 percent for the remainder of
2013, and up to 6 percent for subsequent years, until Dec. 31,
2020.
“Thousands of Missourians across the state are depending
on the Legislature’s actions toward the broken Second Injury
Fund; many people are struggling because they have not received
the settlements they have counted upon for their health and
livelihood,” Sen. Rupp said. “We need to address the fund vigilantly
by helping those with the most critical needs, while boosting
the fund back to life. At the same time, we need to keep Missouri
businesses prosperous and limit liability exposure for employers,
thus ensuring commerce and job growth can remain steady. My
hope and prayer is that the measure will move swiftly through
the Legislature, and we can bring positive solutions to both
employers and employees.”
Senate Bill 1 was voted out of the Small
Business, Insurance and Industry Committee on Thursday,
Jan. 24. To follow the progress of this measure, visit the Missouri
Senate website at www.senate.mo.gov.
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