Kentucky Sends First Workers Compensation Reforms to Governor since 1996

FRANKFORT, Kent. – Workers compensation legislation (HB 2) in Kentucky, which had broad support from the business community is headed to the governor, according to the Property Casualty Insurers Association of America (PCI).

Yesterday the House agreed to amendments made in the Senate to HB 2 and passed the bill. It will now be sent to the governor who is expected to sign the bill.

“House Bill 2 is designed to help contain underlying costs and improve the state’s workers compensation system,” said Jeffrey Junkas, assistant vice president, state government relations for PCI. “It has been more than 20 years since the workers compensation system underwent significant change. HB 2 makes changes impacting medical expenses and benefits. It also takes steps to address the opioid crisis with an evidence-based pharmaceutical formulary and medical treatment guidelines to ensure timely delivery of appropriate medical care to injured workers.”

Additionally, the bill increases the maximum compensation rates for employee temporary total disability, permanent total disability, and permanent partial disability benefits, improves access to vocational rehabilitation services, and makes improvements in the dispute resolution system.

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PCI promotes and protects the viability of a competitive private insurance market for the benefit of consumers and insurers. PCI is composed of nearly 1,000 member companies, representing the broadest cross section of insurers of any national trade association. PCI members write more than $183 billion in annual premium, 35 percent of the nation's property casualty insurance. Member companies write 42 percent of the U.S. automobile insurance market, 27 percent of the homeowners market, 32 percent of the commercial property and liability market and 34 percent of the private workers compensation market.

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