Missouri Business Headlines

Bill to lower workers’ compensation costs heard in the senate

Posted on

When an employee is hurt on the job, the employer has an obligation to pay for the medical cost of the employee if they were hurt performing work duties. Currently, the law caps the employer at $1,000 in out of pocket medical costs before a claim must be sent to insurance.

Sen. Dave Schatz is the sponsor of SB 700, which would index the threshold on an employers’ uniform experience rating and raise the out of pocket cap to $3,500, which would not affect the injured worker and allows businesses more options when it comes to worker’s compensation insurance costs. The bill was heard this week in the Senate Small Business, Insurance and Industry committee.

Sen. Dave Schatz and Brian Bunten testify on SB 700

Sen. Dave Schatz and Brian Bunten testify on SB 700

“The out of pocket costs that an employer can pay is currently $1,000 for no lost time claims. My analogy is every time your car gets dings and dents you don’t turn in an insurance claim, you pay to fix it yourself,” Schatz testified. “We need to raise the threshold because no longer can you go to the emergency room and get a finger stitched up and get back to work for less than $1,000.”

The Missouri Chamber testified in support of the bill.

“This is a way to keep workers’ compensation costs down for businesses and we are supportive of that,” Brian Bunten, general counsel for the Missouri Chamber of Commerce and Industry, testified.

For more information about this issue, please contact Bunten at 573.634.3511 or bbunten@mochamber.com.

« Back to News