Proposed Mo. Bill Aims to Reduce WC Premiums

Senate Republicans made workers’ compensation the first order of business last Wednesday, hearing testimony on a proposed bill that would reduce the number of injured workers eligible for benefits.

Missouri’s business community testified that changes to the state’s workers’ comp system are desperately needed.

Kathy Cowan-Smith, director of human resources for Columbia auto-parts manufacturer Otscon said her employer has struggled with mounting insurance premiums.

“I think what you’re trying today is a very good thing, because I think it is a system that has been broken, and it does need to be fixed for both sides,” she said.

Cowan-Smith added that even though Otscon has worked hard to decrease workplace injuries, its workers’ comp premiums have continued to rise over the past 12 years.

The proposed bill would tighten the definition of a workplace injury, stating that work was “the prevailing factor” for the injury instead of “a substantial factor.” Under the bill, people injured while traveling to and from work while riding in a company-owned car would no longer be eligible for compensation. It would also limit claims from workers injured on the job who are legally drunk.

The bill’s sponsor, Sen. John Loudon (R-Ballwin), said the legislation is intended to help reduce high premiums for Missouri businesses by making sure only people who are legitimately injured on the job receive compensation. Over the years, he said, the courts have expanded the number of people who qualify for compensation beyond what was originally intended.

“The goal of this legislation is to take (a look at) some of the judicial expansion that has broadened what workers’ compensation has covered – things that have allowed people to get into the system that were never intended to be in the system,” Loudon told members of the Senate’s Committee on Small Business, Insurance and Industrial Relations. He is currently the committee’s chair.

But Sen. Tim Green (D-St. Louis), voiced concerns that the bill may go too far.

“We don’t want to put more businesses out of Missouri,” Green said. “At the same time we want to protect those that show up to work everyday and all they want to do is collect a paycheck at the end of the week and they’re rightfully injured.”

Sen. Victor Callahan (D-Independence), questioned whether limiting the number of people eligible for workers’ compensation may actually create a bigger problem for business: more workers trying to sue over injuries.

“I don’t want to create a situation where the only recourse (for injured workers) is to go out and get a lawyer,” Callahan said.

But Kelly Gillespie, a lobbyist for the Missouri Chamber of Commerce and Industry, said he has not seen an increase in legal problems in other states when the requirements for eligible injuries have been tightened.

“I hear your concern that we don’t want to create more litigation, expense or push us in that direction,” he said. But, he added, “I have yet to see it realistically manifested as a threat.”

The committee plans to hear more testimony on the bill next week.

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Topics Legislation Workers' Compensation Pricing Trends Missouri