The South Carolina Senate has approved a workers' compensation reform bill that an insurance industry group said contains only half measures to fix the marketplace.
The bill, S. 332, will move to the House next week.
Raymond G. Farmer, American Insurance Association assistant vice president, said the measure falls far short of the overhaul of the state's workers' comp system that AIA advocated.
"But we have taken a major step forward by getting a bill approved by the Senate," he said.
Mr. Farmer said that many of the major provisions of the bill only partially address the uncontrolled medical costs, increased litigation and premiums that have risen almost 50 percent in the past three years.
The bill eliminates the presumption that a 50 percent disability to the back entitles a claimant to 100 percent disability. Countering that reduction in costs, Mr. Farmer said, is another provision that would add costs back to the system by making employers liable for 500 weeks instead of 300 weeks for back injuries receiving a 50 percent or more impairment rating.
On the positive side, Mr. Farmer noted the bill includes a phase-out of the Second Injury Fund and corrects several court decisions that have added unnecessary costs to the system.
"Unfortunately, the bill is missing key reforms such as requiring the use of AMA guidelines when making disability determinations," he said.
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