LEGISLATOR LEADS HEARING ON WORKERS COMP HERE

SIKESTON - A joint interim committee of the Missouri General Assembly will begin its examination of problems in the state's workers compensation insurance system at a two-day hearing in Cape Girardeau later this month.

Rep. Dennis Ziegenhorn, D-Sikeston, is co-chairing the six member House panel with Rep. Jim Riley, D-Richmond Heights. In the House, Ziegenhorn chairs the insurance committee, while Riley is chairman of the Labor Committee which has handled most of the workers compensation legislation in the past.

The Senate chairman will be Sen. Henry Panethiere, D-Kansas City.

Ziegenhorn said there are serious problems in workers compensation that are driving some companies out of business. He noted that costs are out of control and that solving the problem will take a diligent effort by everyone involved.

"We're looking for solutions, answers, and positive input on how we can make the situation better for everyone," said Ziegenhorn. "Lawyers, insurance companies, employers, employees, everybody is going to lose if everybody doesn't make a concession. We are really looking for answers on how to make the system better and to try and figure out where we are going wrong."

The panel will hold its first meeting Sept. 27 on the campus of Southeast Missouri State University, and expects to receive input from staff of the Missouri Division of Employment Security, the Missouri Department of Insurance, and possibly other state agencies.

Ziegenhorn said those agencies can bring the committee up to date on the problem and possibly have information on what other states have done. The insurance department has recommended an overhaul of the system be made.

On Sept. 28, the committee will receive open testimony from the public. Ziegenhorn stressed the panel wants to hear from anyone who has information they feel it should know. He noted that the exact time and place on campus of the hearings is being worked out.

Other hearings will be scheduled in St. Louis, Jefferson City, and Kansas City.

"We want to try and come up with a bill in January to ease the pain on employers, yet something that will not hurt employees," Ziegenhorn explained. "Everybody is in turmoil now with these rate increases."

He pointed out that rates increased by 14 percent in September of 1990, by 4.8 percent in February of this year, and in August the Department of Insurance granted another 13.5 percent increase.

"One of the areas the committee will be examining is how to avoid future increases which are taking a toll on business industries," said Ziegenhorn.

In addition, the panel will be investigating several areas of the workers compensation system such as the increasing cost of medical care; lack of fee schedules for medical procedures; court decisions which expanded the traditional level of benefits available; and the increasing utilization of workers compensation benefits due to a depressed economy.

Ziegenhorn said it makes sense for business and labor to work together on this issue to try and reach a common group. Ziegenhorn stressed that he, as insurance chairman, and Riley, as labor chairman, recognize the need to join efforts.

"I think both of us understand there is a serious problem and that something has to be done," said Ziegenhorn. "Medical costs, legal fees, everything has just been blown out of proportion. I think everybody knows we will have to make some kind of concessions on this."

Ziegenhorn noted that much of the legislation considered recently by the General Assembly has been aimed at increasing benefits, rather than facing up to problems in the system.

"It's a very complex problem and we need to start making some attempts to find solutions," he summed up. "The costs are to the point where it is putting some people out of business. Here we are trying to make the working environment of employers who come to Missouri attractive, not where it costs them to do business. Workers compensation is becoming a major expense to a lot of businesses and we need to resolve this problem."