ROUND TABLE ADDRESSES WORKERS' COMP PROBLEMS

Patricia "Pat" Secrest knows about the spiraling costs and complexities of workers' compensation in Missouri.

Secrest, owner and co-founder of Secrest Engineered Products Inc., a manufacturer of precision automotive fuel systems components, has studied the state's workers' compensation program. In addition to a being business woman, she is a state representative from District 93.

Secrest, Reps. Mark Richardson, Mary Kasten and David Schwab were in Cape Girardeau Friday at a two-hour Round Table at the Holiday Inn.

Most of the discussion, however, was about two bills dealing with reforming the state's workers' compensation program.

There are some chronic problems with the Missouri workers' compensation bill, Secrest said. "Both the Senate and House bills address some of these problems."

Senate Bill 32 and House Bill 495 are in varying stages of consideration in the legislature. The Senate bill has passed through committee and is on the Senate's calendar, while the House bill was defeated in committee and is on a special calendar.

But, the lawmakers see a need to reform the workers' compensation program.

Richardson, an attorney, said one problem concerns excessive litigation.

"The national average for attorney involvement in workers' compensation cases is 17 percent," he said. Missouri's involvement is 40 percent statewide, and 60 percent in St. Louis.

A fee-schedule allowing attorney awards of up to 25 percent of the settlement is among the highest in the nation, Richardson said, adding that HB 495 would address this issue.

Other issues to be addressed include medical costs, definition of an accident and administrative inefficiency.

"We must restore fairness to the workers' compensation system," he said, so that it works the way it was originally set up to work in 1926.

"Medical costs for workers' compensation increased from $39 million in 1980 to $190 million in 1991," Secrest said. Payments for workers' compensation injuries are more generous than other parts of the health care system. And, unlike other health insurance, workers' comp pays full benefits.

"We'd be pleased with either of these bills," Secrest said. "The bills are very similar, and we've had tremendous support on both of them."

Some 65 business and trade organizations, representing more than 40,000 Missouri employers, have endorsed the two bills.

The Senate bill could be debated as early as next week, but the House bill has a more difficult path to passage.

"We have had so much support for this bill that we petitioned it out of committee," Secrest said, adding that a third of the House favored bringing the bill out of committee.

"We have 70 co-sponsors for the bill, and more than 90 supporters of it," she said. "If we can get it on the House floor I feel we can get it through. It takes only 82 votes and we have a few to spare."

Richardson agreed.

"The big thing now is getting it from the special calendar to the House floor," he said. "This could be difficult, but with continued support from businesses, I think we can get it to floor for debate."

The Cape Girardeau meeting Friday was the fifth round table session in the state.

Meetings have been held at Joplin, Jefferson City, St. Louis and St. Joseph, and meetings are being planned for Kansas City, Jefferson County and Springfield.

"Workers' compensation is the most discussed topic," Secrest said. "The costly workers' comp system is depressing the Missouri business climate. We're even hearing of businesses which are looking into states with a better workers comp climate."