Huntsman Steps Up To Reform Workers' Compensation

John M. Huntsman, the Republican presidential dark-horse candidate from Utah, has his own agenda on attacking workers' compensation and disability benefits. Endorsed today by The Boston Globe, campaign spectators will need to keep a watchful eye on the race as the workers' compensation system is now becoming a major target of Presidential reform without a new substitute system in sight.

Read more about the platform of Jon M. Huntsman:  Morning Feature: To Create Jobs, Subsidize Labor

"Huntsman says his plan is revenue neutral, so who would pay to subsidize investors? He says he’ll pay for it by eliminating deductions and loopholes. While some of those are corporate goodies that many progressives would like to see gone, Huntsman would also take away deductions and credits that help low- and middle-income families, such as exclusions on primary income Social Security benefits, veterans pensions and disability benefits, military combat pay, workers compensation payments, public assistance benefits, and employer-paid health insurance..."

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Congress Told Workers Compensation is a Deteriorating System

The former chair of the 1972 National Commission on Workers' Compensation told Congress that the present system is deteriorating and a new course of action is warranted. Profession Emeritis John F. Burton, Jr., last Wednesday testified before The Subcommittee on Workforce Protections of the Congressional Committee on Education and Labor.

Professor Burton told Congress that during the last 20 years he has observed the "...deterioration in adequacy and equity of state workers' compensation programs..." He reported that "the decline in workers' compensation cash benefits in the states during the 1990's is explained by ....changes in workers' compensation provisions and practice than  is explained by the drop in workplace injuries and disease during the decade."

Burton proposed that Congress consider new legislation to prohibit costs shifting from workers' compensation to Social Security Disability Insurance (SSDI). He advised the Subcommittee that cost shifting was continuing because 15 states were permitted to continue "reverse offset" provisions, the Social Security Administration (SSA) was paying benefits to workers who were not totally disabled under workers compensation acts, and a larger number injured workers were not qualifying for workers' compensation benefits.


As Professor points out, the aging workforce further complicates the burden placed upon the nation's Medicare system. With the erosion of the doctrine that workers' compensation takes the worker as it finds him or her, medical treatment for pre-existing conditions will be a growing cost for Medicare and a cost-shift from the workers' compensation system. The NY Times reported that, "Nearly one-fourth of Medicare beneficiaries have five or more chronic conditions. They account for two-thirds of the program’s spending."

A "reaffirmation" of "Federal standards" as enunciated in the 1972 National Commission report were recommended by Burton.  Additionally, he called upon Congress to enact legislation requiring employers and/or their insurance carriers reimburse Social Security for permanent disability cash benefits paid by Social Security for disability flowing from a work related event or disability.

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