Why Is This Proposal Too Expensive for Government but Not for Business?

Trial attorneys are promoting a bill (SB 907) that imposes very burdensome, and in many cases, virtually impossible timelines on employers for workers’ compensation cases that take away their ability to provide appropriate and cost-effective healthcare.

What’s more, the state’s nonpartisan legislative budgeting office found that the proposal will result in “potentially significant” workers’ compensation medical costs.

So what are some lawmakers planning to do? They are seeking to carve out state and local governments from the bill, dropping its impact squarely onto Connecticut’s private-sector businesses.

At a time when Connecticut employers are already paying more than $67 million in higher workers’ comp costs this year—primarily because of rising medical costs—this proposal makes matters much worse in several ways.

SB 907 needlessly raises employers’ administrative burdens, workers’ comp costs, and contradicts treatment guidelines recently adopted by the state Workers’ Comp Commission that ensure employees receive appropriate healthcare treatment.

All in all, the proposal does nothing to improve workers’ compensation medical care. In fact, it likely will result in less appropriate care and definitely increase costs.

It’s also interesting to note that California—one of the most liberal states in the Union—passed a similar law but were forced to repeal it when their workers’ comp costs skyrocketed.

We’ve seen the negative impact that high workers’ comp costs have had on Connecticut jobs in the past. Let’s not repeat our mistakes with proposals that leave no doubt that they will increase costs and administrative burdens.

CBIA urges the legislature to reject SB 907 as a proposal that will do much harm to Connecticut employers, and the state’s environment for businesses.

For more information, contact CBIA’s Eric Gjede at 860.244.1931 or eric.gjede@cbia.com.