Expect 13.2% hike in workers’ comp costs if SB-847 approved

(May 11, 2007) Much has been said about how Connecticut needs to do all it can to promote job growth and a healthy economy. But the Appropriations Committee is about to vote on a bill that will take a significant step backward by increasing the costs of workers’ compensation insurance for Connecticut businesses by up to 13.2%.

SB-847 takes an already generous additional benefit, the discretionary benefit that workers’ comp commissioners can elect to award for partial permanent disabilities, and extends it to 520 weeks — 10 years.

Meanwhile, Connecticut’s workers’ compensation costs are already among the highest in the United States. SB-847 will only make that situation worse.

Proposals such as SB-847, which also repeals one of the state’s landmark workers’ compensation reforms, make Connecticut businesses wonder about how serious policy-makers really are about promoting job growth.

“Passing bills such as this will add to the list of reasons that Connecticut-based manufacturing companies will want to look elsewhere to produce their products,” a CBIA manufacturing head told his state legislators this week. Said another manufacturing top executive, “This bill could be the straw that breaks the back of a lot of businesses.”

Not only would this measure drive up costs in the private sector, it would also do that for the state and municipalities.

The National Council on Compensation Insurance predicts the bill could increase the costs of workers’ compensation insurance for Connecticut businesses by up to 13.2% or $152 million in the first year alone.

CBIA is urging members of the Appropriations Committee to reject SB-847 as unaffordable for Connecticut’s businesses and economy. For more information, contact CBIA’s Kia Floyd at 860-244-1931 or floydk@cbia.com.

CBIA Action Center

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