Senate approves significant hike in workers’ comp costs

SB-847 now in the House

(June 1, 2007) Workers’ compensation costs in Connecticut could soon soar under a bill the state Senate approved this week by a 21-15 vote and sent to the House.

By approving SB-847, the Senate discarded one of the most important reforms that have helped stabilize Connecticut’s workers’ compensation system over the last 14 years and have kept costs from skyrocketing out of control, as they did in the early 1990s.

The bill also opens the door to what the state’s rate-making agency, the National Council on Compensation Insurance (NCCI ), says could be an increase workers’ comp costs of up to 55%.

Reports from workers' compensation insurers indicate that premiums would initially rise an average of at least 25%, and then may go even higher. That means that many businesses, i.e. manufacturers, would see costs soar even more.

CBIA is encouraging its members to thank those senators who opposed the bill’s passage, continue expressing concerns about the proposal to those who supported it (See vote), and urge their state representative to reject the measure.

Wide expansion of benefit
The bill greatly expands the discretionary benefits Connecticut workers’ compensation commissioners may award — given to workers in addition to their weekly wage replacement and other workers’ comp benefits.

SB-847 alters the cap on discretionary benefits, allowing workers’ compensation commissioners to award any amount of benefits up to the scheduled benefit maximum. People with even relatively minor injuries could receive substantially more compensation through this bill.

What’s more, says NCCI, SB-847 will provide incentives for injured workers not to return to work in order to secure the new higher discretionary benefits. Connecticut is the only state in the nation that awards such generous discretionary benefits.

Attorneys to benefit
Those who stand to gain most from the bill are trial attorneys in the state, who have been aggressively advocating for the measure because it will increase the amount of workers’ comp awards and ultimately, attorneys’ fees for representing injured workers.

On the other hand, more than 125 organizations representing tens of thousands of Connecticut businesses across the state, in the Coalition for a Competitive Connecticut, continue to urge lawmakers to reject SB-847.

Connecticut’s workers’ compensation costs are already among the highest in the nation and this bill will add substantially to the already high cost of doing business in Connecticut.

For more information, contact CBIA’s Kia Floyd at 860-244-1931 or floydk@cbia.com. n

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