S.C. Approves Bill To Drop 2nd Injury Comp Fund

South Carolina legislation overhauling the state workers’ compensation system, which was given final approval yesterday, will get Gov. Mark Sanford’s signature, his staff said today.

A major item in the bill is its repeal of the Second Injury Fund, according to American Insurance Association representative Julie Pulliam.

“This is a good, not great reform bill, and it certainly is a step in a positive direction for the South Carolina comp market,” she said.

Ms. Pulliam said the key provision that failed to make it into the reform package is a requirement for use of American Medical Association guidelines to determine medical charges.

Earlier this year the state’s Legislative Audit Council opined that the Second Injury Fund should be phased out.

Robert Herlong, vice president and regional manager for the Property Casualty Insurers Association of America, agreed that elimination of the fund is a positive step.

“The fund has outlived its usefulness and maintaining it adds unnecessary cost to the workers’ compensation system,” Mr. Herlong said.

The fund reimburses employers or their insurers for workers' compensation payments to workers with pre-existing disabilities or conditions who experience a subsequent injury. “However, since its inception, the fund’s coverage has expanded to include many more qualifying claims and costs have soared,” Mr. Herlong said.