State Enacts Law To Ward Off Huge Workers’ Comp Rate Increases
A bill to prevent a massive increase in workers’ compensation insurance rates quickly became law this week. The Connecticut General Assembly approved the measure on Monday and Gov. Ned Lamont signed it on Tuesday. The bill was designed to reverse the effects of a March decision by the state supreme court.
The Connecticut Supreme Court’s decision in Gardner v. Dept. of Mental Health & Addiction Services changed a long-held interpretation of one provision in the 1993 Workers’ Compensation (WC) reform law.
The court held that administrative law judges have the discretion to award ongoing temporary incapacity benefits for up to 520 weeks, rather than permanent partial disability benefits, to a WC claimant who has reached maximum medical improvement.
An analysis by the National Council on Compensation Insurance (NCCI) predicted that the decision would “lead to upward pressure” on system costs, potentially increasing them by more than 5%. Other analyses forecast increases of 265% for municipal, state, and private employers.
The bill passed and signed this week, part of a larger budget bill, clarified the language the court cited in its opinion. It was negotiated and rapidly introduced after the deadline for filing and holding hearings on bills, as the court rendered the decision after the deadline.
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