Reform Needed to Restore Original Purpose, Address Abuses and Rein in Skyrocketing Costs
- The SIBTF is a state fund that pays injured workers for previous, work-disabling disabilities. It is funded by annual assessment on employers.
- Originally established for war veterans entering the workforce and rarely used for decades, SIBTF claims have exploded during the past 10 years.
- SIBTF claims are added to workers’ compensation claims, but are not subject to the same rules and safeguards.
- Annual claims to the SIBTF have increased five-fold. Average benefit amount has increased by six times from $13K to $80K per claim. Money paid to vendors and attorneys has grown by 40 times.
- Employer assessments have grown from $106 million to $859 million per year
- SIBTF claims are increasingly for common health conditions or chronic diseases frequently found in an aging population – like acid reflux and hypertension – even though they rarely result in disability in a typical workers’ compensation claim.
- SIBTF reforms are needed to address skyrocketing liabilities.
