In the last five years, Missouri’s Second Injury Fund has
become insolvent. Loopholes and poor
eligibility decisions have allowed outrageous abusers to gain access to the
fund. As a result, Missouri’s employers
are being faced to pay more which put them at a competitive disadvantage with
employers in other states. In order to
address this growing problem, last week, the Missouri Senate took significant
steps towards much needed reform.
Missouri’s Second Injury fund was created in 1943 to
encourage the employment of individuals (primarily veterans) with a previous
disability by limiting an employer’s liability for accidents occurring beyond the
workplace. In 2005, Missouri’s fund
carried a $25 million surplus. By 2008,
the economy was slowing which brought less money into the fund even though
claims were skyrocketing. Earlier this
year, the state auditor estimated that the Second Injury Fund now has a $28
million debt with approximately 30,000 outstanding claims.
Senate Bill 1 provides a solution that will return
solvency to the fund and address the legitimate unpaid claims while mitigating,
but not eliminating, the negative impact to Missouri’s employers. This legislation establishes a new priority
for paying claims, restores reasonable eligibility requirements, and limits
what qualifies for financial awards.
These reforms will help lessen the strain on employers as
they work to energize our state’s economy.
The outlandish waste and fraud in the Second Injury Fund will be
stopped. And the fund will now be
solvent for those who have legitimate claims.
Finally, our state government will be a facilitator in creating an
economic climate that is fair, accountable, and beneficial to the citizens it
serves.
As always, please feel free to call, email, or write with your ideas or
concerns. The Capitol number is (573)
751-1415, my email is brad.lager@senate.mo.gov
and my mailing address is Room 422, State Capitol Building, Jefferson City, MO
65101.
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