The state shouldn't have to compensate workers for on-the-job injuries or diseases after March 31, 1994, according to the Governor's Task Force on Workers' Compensation.
The findings were reported Monday to Gov. Mike Leavitt, who asked for an opportunity to review the report and meet again with the task force before deciding what he'll include in his legislative package.The task-force recommendation to eliminate any state liability for workers' compensation claims would shift the financial responsibility to the employers of injured workers and their insurance carriers.
Claims resulting from injuries or occupational diseases occurring after March 31, 1994, would be the responsibility of the employer's private insurance carrier or self-insurance plan.
The state would, however, keep its promises to permanently disabled workers by requiring that all existing obligations continue to be paid from the Employers' Reinsurance Fund with no change in benefits.
The change, described as significant reform, "is necessary to protect the viability of Utah's system and to lower costs over the long run," according to the report.
The biggest savings will come from steps taken by private employers, employees and health-care providers, the report stated, to improve workplace safety and reduce accidents.
The existing fund is paid for entirely by employers without any employee contribution. Injured workers cannot sue their employers for damages resulting from an accidental, on-the-job injury.
Some 75,000 workers annually suffer on-the-job injuries that result in some type of workers' compensation claim. Of those claims, about 15,000 require lost time and/or indemnity payments.
According to the National Council on Compensation Insurance, Utah has among the highest number of claims in the nation, even though the number of accidents remains constant.
In 1993, the Workers Compensation Fund of Utah, which covers 55 percent of the market in the state, is expected to incur an estimated $100 million in benefits on a total of 40,000 claims.
The quasi-public Workers Compensation Fund is, under Utah law, the insurer of last resort. About 162 employers with a total of nearly 142,000 employees are currently self-insured.
The Industrial Commission estimates that as many as 10 percent of Utah employers do not have coverage. Those employers are subject to fines and possible court orders to cease operations until obtaining insurance.
The task force was formed by the governor to come up with ways to keep the double-digit growth in rates from threatening the state's strong business climate.
During the past 10 years, Utah rates have increased an average of 10 percent annually, including an overall increase of 19.5 percent in 1993.