WASHINGTON–The American Insurance Association said it is supporting legislation to update the workers' compensation system for maritime workers, which it calls the nation's most expensive comp program.
AIA said it is backing the Longshore and Harbor Workers' Compensation Act Amendments of 2007, or S. 846, introduced by Sen. Johnny Isakson, R-Ga.
The senator introduced his bill Monday, saying there is a need to update a system that has not changed in over 20 years.
Sen. Isakson added that the system needs reforms to modernize it, save taxpayer dollars, and eliminate waste, fraud and abuse while ensuring workers have appropriate medical care.
Bruce Wood, AIA assistant legal counsel, said Congress last amended the act in 1984.
The U.S. Supreme Court has ruled that the maritime clause in the U.S. Constitution forbids states from providing a compensation system to shore-based maritime workers who may become injured while working on vessels.
Since its inception, Sen. Isakson said the maritime workers' comp program has been expanded to include virtually any maritime construction worker–including builders and repairers of U.S. Naval and Coast Guard vessels, federal contractors with overseas employees, oil rig workers, and even civilian employees at the Post Exchanges on U.S. military bases.
AIA said this expansion has made the Longshore Act the nation's most expensive workers' compensation program, with the latest available data showing annual benefit payments under the act totaling $779 million.
The senator said his bill will hold employers responsible only for that which is caused by employment in the Longshore system.
Sen. Isakson's legislation has been sent to the Senate Health, Education, Labor and Pensions committee, which has not yet scheduled a hearing on the bill.
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