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.