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...
Sanford
Signs Executive Order for Objective Standards
web
posted September 21, 2007
COLUMBIA – Gov. Mark Sanfordjoined with
business groups from across South Carolina on Thursday to sign
Executive Order 2007-16, mandating that the Workers' Compensation
Commission and its commissioners follow state law in applying objective
standards when making workers' compensation awards.
The South Carolina Supreme Court has held that the workers'
compensation awards should be made in accordance with objective
standards, and that their use is mandated by the "due process" clause
of the state constitution. However, workers' compensation rulings in
South Carolina have varied wildly, averaging 81 percent higher than
awards made in other states that follow similar guidelines. This has
led in part to recent spiraling increases in workers compensation
insurance - an indirect tax on every South Carolina consumer. The new
order will ensure compliance with existing law, and, as a result, help
reduce the cost of doing business in South Carolina in order to help
grow our economy.
"Even though the bill passed earlier this year represented a big step
forward, it fell short on the idea of making clear that workers'
compensation awards should be based upon objective standards, something
we're addressing today with this order," Gov. Sanford said. "We believe
this Executive Order will have a material impact in improving our
workers' compensation system, a system that had unfortunately become
too subjective, was hurting our small businesses' ability to compete,
and was driving up costs for the average South Carolinian."
Workers' compensation reform has been a top priority for Gov. Sanford
this year, one that he laid out in his State of the State as being key
to our state's continued ability to attract and grow businesses. The
changes made in this year's previous reform bill that Gov. Sanford
signed, S.332, are aimed at injecting some much-needed predictability,
consistency, and rationality into the workers' compensation system in
South Carolina.
In 2000, South Carolina ranked 49th in the nation in workers'
compensation premium rates and moved up to 42nd in 2002 and moved three
more spots in 2004 to 39th. Currently, South Carolina has the 25th
highest premium in the nation - jumping 24 spots in just six
years. Last year, South Carolina's workers' compensation premiums
grew more than 18 percent and our state ranks second in the nation
since 2000 in terms of how quickly rates have increased. Meanwhile,
reform in other states has produced insurance premium rate reductions
for their businesses - California has seen a cumulative rate reduction
of 55 percent since July 2003 while Florida's workers' compensation
filings - which impact the cost of premiums - have seen a 13 percent
decrease this year alone.
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