Oklahoma lawmakers previously announced that workers’ compensation would figure prominently in this year’s legislative session. So far they are backing up their words with action, as a number of bills have recently been filed addressing the issue.
State Rep. Ryan McMullen, D-Burns Flat, got the ball rolling on Jan. 21 by introducing three bills he believes will significantly reduce the cost of workers’ comp insurance.
McMullen’s reform package includes House Bill 1439, which would provide a $1,000 income tax deduction to companies that utilize the Labor Department’s Safety Pays program. The tax incentive is designed to encourage businesses to participate in voluntary inspections in which Labor Department consultants help improve workplace safety and avoid potential fines from the federal Occupational Safety and Health Administration.
Proponents of Safety Pays, such as McMullen and Labor Commissioner Brenda Reneau, cite the program’s track record of lowering participants’ workers’ comp costs by 80 percent or more.
“We can no longer allow this program to be such a well kept secret,” McMullen stated. “We should give the Commissioner and the Department the tools they need to encourage more Okla-homa businesses to experience Safety Pays’ cost savings.”
McMullen’s package also includes House Bill 1440, a proposal that would ensure the confidentiality of forms filed by individuals claiming workplace injury.
The Democratic lawmaker believes there is an increasing problem with a small group of “unscrupulous attorneys” pros-pecting with the forms to try and drum up business through individuals who would otherwise receive a fair settlement without extensive litigation.
“The legislation ensures injured workers will continue to have access to the courts when needed, but they won’t be bombarded by legal solicitations,” McMullen said. “This will no doubt reduce the amount of litigation and drive down the cost of the system.”
McMullen, who also authored legislation to increase the penalties for filing fraudulent workers’ comp claims, believes his package should be an integral part of the total reform many legislative leaders are demanding.
On Jan. 25 Republican lawmakers announced their workers’ compensation reform plan, House Bill 2046.
“I have watched many Oklahomans lose hope in recent years, as job opportunities move to other states,” stated Speaker of the House Todd Hiett, R-Kellyville. “We must make significant strides this year. This is a broken system, and it must be fixed.”
The workers’ compensation reform initiative under HB 2046 is designed to fix this broken system, its backers say. The current system is one of the most expensive in the nation–the 12th highest in costs–and it is rife with waste, fraud and legal nightmares.
HB 2046 addresses four major reforms: increasing benefits for workers; reducing legal costs; reducing medical costs for workers; and increasing marketplace competition
Also attending the press conference to announce the bill were State Senate Republican Floor Leader Glenn Coffee, R-Oklahoma City, and State Sen. Scott Pruitt, R-Broken Arrow, who will carry the bill through the Senate.
Lt. Gov. Mary Fallin also appeared at the reform announcement. Fallin has been an advocate of serious workers’ compensation reform for years.
“This must be the year for real, comprehensive workers comp reform,” Fallin said. “Because of my role in pushing for these reforms for the past eight years, I frequently hear from business owners and workers who are increasingly frustrated by our lack of progress.”
“This is the most important issue facing our state’s economy,” said Rep. Fred Morgan, R-Oklahoma City, who will carry the bill through the House. “The current system lines the pockets of lawyers, while hindering business owners and stripping away job opportunities from workers.”
Republican leaders say the reforms will have a profound impact in the battle to bring jobs to Oklahoma, while reducing the strain on struggling businesses. In addition, the reforms will treat injured workers fairly–without having to decipher an oppressive bureaucracy, the bill’s supporters said.
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