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The Wyoming Workers' Compensation Division has a reserve of nearly $1 billion. Lawmakers tried, mostly in vain, to
understand the complex actuarial calculations to determine how much of that $1 billion is needed to cover future
expenses and how much might be available to commit to additional benefits or premium discounts.
"We know we have to raise some benefits. If we have to raise premiums, then that's what we have to do," said Rep. Tom
Lubnau, R-Gillette.
The Joint Labor, Health and Social Services Interim Committee met Monday at the Central Wyoming Counseling Center in
Casper to work proposed legislation aimed at improving benefits to injured workers. The committee worked to meld two
bills into a single benefits package, and briefly discussed another bill that would create a worker advocate position
to aid workers through the compensation program.
The committee will take up another bill to extend coverage of mental injuries as it reconvenes this morning.
The Workers' Compensation reserve was $992 million as of June 30, a flush and healthy fund, according to actuary Glenn
Wise. There is a surplus. But whether that surplus is $60 million or more than $300 million is ultimately a matter of
how the legislature wants to hedge its bets on the future.
Medical costs are rising 7 percent annually. Wages, which many indemnity benefits are calculated on, are rising 3 percent
annually.
Even with inflation, there appears to be some wiggle room in the $1 billion reserve to increase benefits. But whether
the increases will actually result in employers having to pay more in premiums -- and how much -- is uncertain.
Small business representatives said that individual benefit expansions sound doable. But they worried the broad package
of proposed increases could translate into higher premiums for employers.
Casper businessman Rob Monroe told the committee that small businesses in Wyoming are already struggling to survive.
"It's getting to the point where it's becoming more difficult to stay in business. I fear (small business is) in serious
trouble," said Monroe.
So far, there are no proposals to raise premiums for employers enrolled in the state's workers' compensation program. In
fact, the draft legislation includes language that would rebate investment earnings back to premium payers so long as
the reserve is solvent.
Still, business and industrial lobbyists surmised increasing benefits will most likely raise employer premiums.
"You can't raise all the benefits without raising the (premium) rates," Wyoming Mining Association executive director
Marion Loomis said.
Loomis suggested that some injured workers would be less motivated to return to work if benefits are raised.
Worker advocates bristled at such suggestions.
"Wyoming workers have a strong work ethic," Cheyenne attorney George Santini said. "Part of the problem is that injured
workers aren't allowed to get well to go back to work. People want to work. No one wants to be hurt."
Draft legislation before the committee includes several structural changes to the Workers' Compensation program. One
controversial issue is whether to force retail businesses into the state program, which would bring in an additional
4,000 companies.
Another provision aimed at shortening the time it takes to resolve a contested claim underwent several changes while
worker advocates laid blame on the Workers' Compensation division for allegedly making baseless denials of claims that
are ultimately found to be compensable.
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Members of a joint legislative committee seem to be in agreement that many benefits to injured workers ought to be
increased, but said they need to better understand the potential cost before making adjustments.