Delaware General Assembly

Senate Executive 6/17/03

The General Assembly has ended, the current status is the final status.

6/17/03

Adams

Sen. Venables, Amick, Bonini, Copeland, Still
Reps. Boulden, Hocker, Hudson

AN ACT TO AMEND TITLE 19 OF THE DELAWARE CODE RELATING TO WORKERS COMPENSATION.

Similar to national conditions, economic conditions have deteriorated in Delaware in the last several years. Last year, the State revenue decreased $200 million. Due to further revenue decreases, the Governor expects the gap between projected revenues and expenditures in Fiscal Year 2004 to be around $300 million. Most of these shortfalls are attributable to increases in medical costs, school aid and growing prison costs. The private sector has experienced similar conditions. Business revenues are down and costs are increasing. Because of increased costs, companies have reduced hirings, or, in some cases, have simply moved out of state. Between December 2001 and December 2002, Delaware lost 9,500 non-farm jobs. The manufacturing sector topped the list, losing close to 3,000 jobs in that same time period. At the same time, living costs in Delaware have increased. In particular, medical care has increased an average of 8.7% in 2001 according to the Centers for Medicare and Medicaid Services. Other groups report that medical care costs are expected to continue to increase significantly over the next decade. Every month more Delawareans loose medical insurance coverage or loose their jobs that provide medical coverage. A part of the reason for the high cost of doing business in Delaware is the cost of Workers Compensation. In 2001, workers compensation rates increased 16% and in 2002 they increased over 6%. The Delaware Compensation Rating Bureau cited medical costs as a significant contributing factor to the recent increase in workers compensation rates.

N/A

N/A

Takes effect upon being signed into law

N/A

View HTML View PDF