Compromise finally yields bill in Washington state
But things in scandal-ridden Illinois may have reached breaking point
m
As regular readers know, we’ve been following the battle over workers’ comp reform in Washington state. A bill finally has been passed, although some observers believe the new legislation is merely a starting point.
Supporters say bill will save $1.1 billion
From a May 24 Business Insurance piece:
Washington state legislators approved a workers compensation reform bill that its backers say will save the state’s disability system $1.1 billion over the next four years.
H.B. 2123 passed the Washington state House on a 69-26 vote and the Senate on a 35-12 vote on Monday, wrapping a three-week effort to revamp the state’s system.
Gov. Christine Gregorie, who backed the effort, is expected to sign the bill into law.
“Among several provisions, the agreement reached (Monday) promotes getting workers back on the job faster, freezes cost of living allowances to ensure parity with others and provides the option of a structured claims settlement,” Gov. Gregorie said in a statement.
A blog at the Seattle Post-Intelligencer’s Web site has this to say:
Governor: ‘one of the most contentious, complex and difficult issues’
The big news out of Olympia Sunday evening was a deal on changing the workers’ compensation system.
From Mike Baker at AP:
The proposal announced by Gov. Chris Gregoire and leaders from both parties seeks to improve the long-term health of the system by offering financial settlements to older workers who get injured. Labor groups immediately panned the deal as unacceptable while business advocates gave lukewarm approval.
Gregoire called it one of the most contentious, complex and difficult issues that she and the Legislature have tackled.
“There’s no one here who won. There’s no one here who lost,” Gregoire said while looking around at Democratic and Republican leaders from both chambers.
Jordan Schrader at The News Tribune has more details.
Congrats, Washington legislators–let’s just hope no injured workers get lost in the cracks of such extended gamemanship.
Editorial questions soundness of the new bill
Here’s the start of an editorial about the new bill, from The Seattle Times, May 24, expressing similar sentiments:
THE Legislature’s hard-won compromise on workers’ compensation reform yielded a solid start to restoring sustainability to Washington’s system for injured workers. It also broke the logjam on the state budget, avoiding a second special session.
More reform of industrial insurance needs to be done. The option for an injured worker to take a cash settlement for an economic loss (but not a medical claim) is more useful the younger the worker. A younger worker has more time, strength and interest to stay in the world of work rather than being pensioned off.
For reasons that make no sense to us, the compromise limits the cash-out option to workers older than 50. The bill also spreads out larger cash settlements over several years, making it more difficult to buy expensive tools or start a business. Still, it is a new option. Workers will take it, and people will see the results.
For employers, the reforms will save several hundred million dollars a year. This will help them create jobs and power the economic recovery.
More revelations in the Illinois scandal
Another story we’ve been monitoring is the unfolding scandal over the Illinois’ workers’ comp system. Much of the story has been broken by reporters at the Belleville News-Democrat, a McClatchy paper. However, a May 23 editorial in the Chicago Sun-Times effectively summarizes the situation:
If the sudden agreement not to talk about workers compensation reform is any indication, negotiators in Springfield might be getting close to a deal.
It’s a deal that Illinois needs to boost its image as an employer-friendly state. But any deal must also be fair to everyone with a stake in the system.
Businesses have long complained that soaring Illinois workers comp costs are chasing jobs out of the state. Unions just as adamantly insist that workers must be protected and treated fairly. Among others with an interest in any rule changes are hospitals, medical professionals, insurance companies, trial lawyers and taxpayers, who indirectly are employers of public workers. It’s a puzzle with a lot of moving pieces.
However, two reporters writing for the GateHouse News Service filed a May 23 piece indicating that the debate has reached the make-it-or-break-it stage: “Workers’ compensation reform negotiations were on the rocks again Monday in the Illinois General Assembly, and a key senator said lawmakers will move Wednesday to abolish the system if the talks are not resurrected.”
And on May 24, the Belleville News-Democrat broke more related news:
A state agency has hired a prestigious Chicago law firm at taxpayers’ expense to assist in its appeal of an attorney general’s order to release information related to millions of dollars in settlements paid to Menard prison guards for injuries they say were caused by operating heavy cell locking mechanisms.
The state Central Management Services, which processes Illinois’ Workers’ Compensation claims, filed suit Monday in Cook County Circuit Court seeking to deny a request for the records from the Belleville News-Democrat, contending the agency is an insurance pool and therefore allowed to withhold the information as proprietary.
Also on Monday, state Rep. Dwight Kay, R-Glen Carbon introduced House Resolution 405 in an effort to get the legislature to order CMS to turn over the records.
Following is a link to many of BND’s scoops on the state’s troubled workers’ comp system: just click here and scroll down a bit.
We can help you find an attorney
Frequently enough, a worker’s compensation case may be so complex as to demand legal representation. However, sometimes what seems like a cut-and-dried situation to an injured worker may result in a smaller award than envisioned–or even a denial. Have you, a friend or a loved one been injured on the job? Whether you’re merely seeking answers about your rights or believe a lawsuit may be necessary, be sure to seek counsel with attorneys trained and experienced in workers’ compensation. Here’s some resources:
