CHAMBER SEEKS WORKERS' COMPENSATION EQUITY

The Missouri Chamber of Commerce is joining forces with local chambers and other business groups this year to seek legislation they hope will restore fairness to the state's workers' compensation law.

"We think this is the No. 1 issue facing Missouri business today -- It is an economic-development issue," said Tony Reinhart at the monthly First Friday Coffee of the Cape Girardeau Chamber.

Reinhart, vice president of governmental affairs for the state chamber, pointed out that workers' compensation premiums in Missouri now total $800 million, compared with $200 million just 10 years ago. With companies that are self-insured figured in, the total premiums top the billion-dollar mark.

Reinhart pointed out that state legislators have not adequately addressed the problems in new laws passed in 1992 with HB-975 and SB-251 passed in 1993.

Although Gov. Mel Carnahan and some legislative leaders have suggested those laws need time to work, Reinhart said it is clear to chamber officials that they will come up short.

He explained that 65 percent of chamber members's busineses had rate hikes this year, and most of the 15 percent with reductions were due to a drop in their work force or change in their business operations.

Reinhart said the real issue is fairness. He said over 60 groups have joined together to form Missourians To Restore Fair Workers' Compensation. That group will lead the effort to pass new legislation next year, which he predicted has a better than 50-50 chance of passing.

Reinhart complained that the current workers' compensation laws give the benefit of the doubt to employees in decisions on claims. To be fair, Reinhart said the law should be changed to at least put employers and employees on equal footing.

Legislation that has already been prefiled for 1995 will deal with the definitions of accidents, reducing litigation costs, getting a handle on medical costs, and improving efficiency of the system.

Reinhart said Missouri ranks first in the nation for lawyer involvement in workers'-compensation cases. The statewide averge is 40 percent, in St. Louis it is 60 percent, and the national average is 17 percent.

Studies show that in most cases the use of lawyers does not increase the benefit to employees, and often decreases it. The proposed legislation establishes a lawyer fee schedule.

"We are talking about a system that has been liberalized over the last 12 to 15 years," said Reinhart. "We are trying to restore fairness and trying to bring it back to the center."

The Cape Girardeau Chamber is among the organizations joining Missourians To Restore Fair Workers' Compensation. In all, the coalition represents 40,000 Missouri employers.