The Senate Labor Committee forwarded a bill Tuesday to expand existing Worker’s Compensation benefits for volunteer emergency responders to more recipients under more circumstances, hoping to find a way to pay for the slight increase later in the legislative process.
Under current law, paid St. Croix and St. Thomas Emergency Medical Technicians are already covered, as are volunteer EMTs who work for the government. The bill sent out of committee would add St. John and Water Island EMTs, trainees and members of the Medical Reserve Corps.
Testifiers form the Department of Health, V.I. Territorial Emergency Management Agency, and St. Croix Rescue squads all spoke in favor of the measures, as did written testimony entered into the record from the St. Thomas, St. John and Water Island rescue squads. No one testified against the measures, which were initially contained in two bills, then merged, via amendment into one.
However, Labor Commissioner Albert Bryan and others argued the bill would be irresponsible without finding a way to fund the increased benefits.
"While this bill is well intentioned, it is necessary to put on the record that the Government Insurance Fund is already overburdened and in need of relief," Bryan said. "In adding beneficiaries to the program, the chief consideration is whether or not the program is solvent."
Anthony Selkridge, director of the Finance Department’s Government Insurance Fund, testified the increased benefits could be covered by some small new tax.
"An example is a $10 fee added to each traffic violation," Selkridge offered.
More significantly, he said the Worker’s Compensation fund was losing money at a steady clip, without expanding benefits. The system insures about 40,000 workers territory wide in both the government and private sectors. In 2008, the fund collected about $7.8 million but spent about $8.8 million on benefits. And this year, the fund anticipates only $7 million in collections but $9 million in payments.
Sen. Louis Hill asked Selkridge about the source of the imbalance and what he planned to do about it. Selkridge said current economic conditions were a part of the problem, with fewer private sector workers paying into the system, but the rate structure was the main culprit.
"Coming from an insurance background I can tell you that insurance companies adjust their rates every single year," Selkridge said. "But the rates being charged for workers here are 25 years old. Ronald Reagan was president. … If you went to Juan F. Luis Hospital or Schneider (Regional Medical Center) 25 years ago, the aspirin they gave you then is not the same price today."
His division is in the process of drafting a new rate schedule proposal, but ultimately any rate increases must be approved by the Legislature, he said.
Sen. Terrence "Positive" Nelson asked the testifiers how much was currently being spent on Workers’ Compensation to EMTs.
"I’ve been with Worker’s Compensation for 12 years and when I came on board there was one case already active," said Wanda Morris, director of Workers’ Compensation at Labor. "I can’t recall another case since then," she said.
"That should tell us that even though it is a potential cost it is not a real cost until there is a claim," Nelson said.
Sen. Sammuel Sanes said he supported the bill but it should have some regular, predictable source of revenue before final passage.
At the start of the hearing, there were two similar bills, one from Hill and the other from Sen. Craig Barshinger. Barshinger offered an amendment to Hill’s bill to incorporate those aspects of his own bill that were not already covered there and moved to have his own bill held in committee. The amendments and the final bill were passed by the committee without dissent.
Voting yea on all votes were: Barshinger, Nelson, Sanes, Sens. Shawn-Michael Malone, Nereida "Nellie" O’Reilly and Usie Richards. Sen. Carlton "Ital" Dowe was absent.