Workers compensation battle expected in House

SOURCE

AFLCIO_Logo_WebThe Journal Record

 

OKLAHOMA CITY – Though it cleared the Oklahoma Senate with no amendments, little debate and a big spread of yes votes, the mammoth overhaul of the workers’ compensation system probably won’t be getting the same fast-track reception on the other side of the Capitol.

Designed to eliminate the present court-based system and return to an administrative structure, House Bill 1062 would reduce workers’ compensation benefits paid to employees.

But at least one Republican state lawmaker said the bill could be in for a difficult time in the Oklahoma House of Representatives.

“It’s going to be a hell of a fight,” said state Rep. David Dank, R-Oklahoma City. “The House is where they will have the front-line battle.”

Union leaders agree. Jimmy Curry, state AFL-CIO president, said the bill lowers the cost of workers’ compensation insurance on the backs of the workers. Curry said union locals across the state oppose the measure because it reduces payments for injured workers. He said union representatives were urging state representatives to vote against the bill.

Curry said many unions oppose the bill because it would prevent workers from collecting disability payments if they had returned to work, even for a brief period, and would penalize workers who return to work if they have ongoing medical needs.

“Once you go back to work, unless you have had an arm or leg cut off, you’d get nothing,” he said.

Curry said the bill would also reduce an injured worker’s weekly payments.

“The way the law was before you got 70 percent of your average weekly wage,” he said. “Now they’ve put in ‘or $250.’ So the most you can get is $250 per week, that’s like $13,400 per year.”

They are figuring you’re only worth $250 per week, no matter what you’re getting paid, he said.

Curry isn’t the only one concerned with the bill. State Rep. Joe Dorman, D-Rush Springs, said the bill’s opt-out provision could actually increase the cost of workers’ compensation insurance to smaller businesses.

“I view it as a high-risk pool for insurance,” Dorman said. “The more you have in the system, the likelihood that your rates are going to be lower for small business. If we allow for opt-out for some of these larger businesses, I think that will increase the cost on small businesses in Oklahoma – and that’s a cost they can’t afford right now.”

Dorman said Oklahoma’s workers’ compensation rates are high because doctors, lawyers and insurance companies are all playing against each other.

“We never seem to tackle all three at an equal level to take care of the worker, the one receiving the benefit – they seem to be left out in the cold,” he said.

Until lawmakers address medical costs, the legal issues and insurance costs, Dorman said, workers’ compensation rates in Oklahoma won’t decrease.

“Until we address the insurance costs to make sure that rates are maintained at a reasonable level and not just simply offset losses for the companies, we’re never going to see a successful resolution,” he said.

Dorman said he was pleased that House Speaker T.W. Shannon slowed the bill down.

“I appreciate slowing down the discussion because we need to make sure whatever we pass is going to be the best answer for all the people involved,” he said. “I would hope that people who have concerns would bring them to light so we can fix the bill.”

Political consultant Pat McFerron said workers’ compensation remains a critical issue with the business community.

“If you look at how we compete with other states, the one place where we lack is workers’ comp,” he said. “People put Oklahoma in the five or six worse states for workers’ comp.”

People who are concerned about the cost of doing business understand that the past efforts to reform workers’ compensation haven’t been successful, McFerron said.

Dank agreed. But passing the bill in the House, he said, will prove more difficult because of the influence of lobbyists and special-interest groups.

“It’s going to be very difficult to pass because of the inroads into the GOP that have been made by trial lawyers and some doctors groups,” he said. “There are groups of attorneys and doctors that are feeding off the workers’ comp system.”

Though SB 1062 cleared the Senate with a 34-12 vote, it has not been assigned to a committee in the House of Representatives.