November 12, 1996
Contact: Mark Pfeiffer
502-564-2611

Frankfort, Ky. - Like Daniel going into the lions den, Governor Paul Patton today took his case for workers' compensation reform to a group of lawyers and insurance representatives in Lexington today, telling those attending the Workers' Compensation Institute meeting at the Radisson Plaza Hotel that his proposed reforms may adversely affect some of them but "will result in more and speedier benefits for the truly injured worker, less cost to business and a more competitive business climate for Kentucky."

Governor Patton told the group that he wanted to make worker's compensation in Kentucky less adversarial and more of an administrative system. "The centerpiece of my reform," the governor said, " will be a worker's comp award based on objective medical evidence determined by the professional staff of one of the state's two medical schools. The occupational disability will be determined by objective criteria that will leave little doubt about what is due the injured worker."

The governor said that attorneys will not be removed from the process and fair fees will be allowed under his proposal but he said "There just won't be as much to argue about. An administrative process will determine an award which can be appealed in much the same way as today."

While the governor's proposal would close out the current special fund for the coal industry with arrangements made to pay off the existing liability, the governor emphasized that "The awards already made to workers in Kentucky will not be reduced in any way." Under his reform, the use of worker's compensation as a supplemental retirement program will be reduced and black lung awards will be based on measurable disability.

The governor said the total cost of worker's compensation in Kentucky has risen 55% in the past four years and is higher than surrounding states that compete with Kentucky in the recruitment of business and industry.

"If we don't make fundamental, comprehensive reform now, ten years from now, our coal industry will only be a shadow of what it is today and Kentucky's overall economy won't be what it can be and must be to move our state into the mainstream of American economic opportunity."

The governor told the group that a final workers' compensation reform bill will be ready by December 2nd when he expects to call the legislature into a special session.