Workers Comp Backs Away from Changes to Immigrant Benefits

None by KCPW

(KCPW News) The Workers Compensation Fund had planned to ask its advisory council this week for permission to stop paying lost wages to undocumented workers who are injured on the job. But the private insurer has now decided that's not such a good idea.

"To solve one little problem it's created such a huge problem, we'd rather just continue on with business as usual," says Peggy Larsen, senior vice president of marketing for the Workers Compensation Fund.

Workers Compensation Fund spokesperson Peggy Larsen says the company originally proposed the change as a result of single situation where an injured worker without legal status announced his intention to not return to work. Through a loophole, he was able to demand continued compensation for lost wages. But that opened a can of worms Larsen says the company doesn't want to deal with. Instead, they are now asking permission to stop paying lost wages for people in prison.

Larsen estimates about five percent of disability claims are being paid to people who are incarcerated. If the change is approved, Worker's Compensation will still pay for medical benefits. As for undocumented workers, Larsen says disability benefits are distributed regardless of citizenship.

Email to a friendPosted in KCPW Newsroom. Copyright 2008 KCPW