Workers' Compensation News

Legislators resist workers' comp reforms

The No. 1 workplace issue before the Legislature this year is the same issue lawmakers have failed to resolve the past several years - reforming Hawaii's ailing workers' compensation system.

The Lingle-Aiona administration proposed again this year an omnibus workers' compensation reform bill that would provide injured workers the quality medical care and benefits they need to return to work as soon as they are able. In turn, these measures will lower workers' compensation costs, which will eventually result in lower premiums for Hawaii's businesses. The bill benefits both workers and employers.

The State Department of Labor and Industrial Relations has also undertaken efforts to reform the state's workers' compensation system by implementing internal procedures, known as administrative rules, to improve our efficiency in resolving claims. The proposed rules are intended to modernize our workers' compensation system. They will bring efficiency, transparency and accountability, while ensuring injured workers are provided quality medical treatment.

In treating an injured worker, the administrative rules would require physicians to follow medical guidelines, which are based on "best practices" of medicine or what is commonly called "evidence-based medicine." This change alone may possibly result in a 36.7 percent cost savings to Hawaii's workers' compensation system. It could have a larger impact than the 1995 workers' compensation reform efforts that yielded a 27 percent cost savings.

However, as we approach the halfway mark of the 2005 legislative session, it is seemingly clear that legislators are resisting any change to the workers' compensation system. In fact, it appears that their primary goal this session is to preserve the status quo at all costs. The Legislature is even going as far as advancing two bills, House Bill 1773 and Senate bill 1808, which would cancel or invalidate any rule adopted by our administration. These bills would also "hand-cuff" our department from making rule changes until 2007.

If you have suffered personal injuries or emotional distress due to the negligence of workers compensaton laws in Utah, contact our Workers Compensation lawyer now and obtain a free case evaluation.

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