Commentary:  Kenneth Perdue

Fraud, Greed Can End In Workers' Compensation

The Charleston Gazette, June 27, 2005

In 1913, Workers’ Compensation was established in West Virginia to provide workers with medical coverage and compensation when injured on the job — and to protect employers from lawsuits.

However, the opportunity for fraud and greed was its downfall. This practice has become accepted for many years. The system was well-intended, but the protections were not great enough to keep the greedy from manipulating it.

A democratic society must not accept or approve of greed or fraud. Workers’ Comp was dedicated to injured workers while working with responsible employers. The system was soon to become a cash cow for the greedy, and the opportunity for fraud was on its merry way.

I don’t want readers to believe that all injured workers fraudulently receive benefits. I believe that a few bad players are responsible for the perception of Workers’ Compensation being a welfare program. The individuals who started that rumor were quite effective; the fact is that a large majority of injured workers want to work and be an asset to the state. It is quite unbelievable to me that the employers who were responsible in paying their premiums timely have not been raising the roof concerning the bad company players. Bad players have taken fraud and greed to a level envied by few.

I don’t want readers to interpret that Workers’ Compensation problems rest solely on the employees and employers. They were in smoke-filled rooms that included doctors, lawyers, politicians and other deeply interested individuals. This group was small in numbers but effective in purpose. I hope that all the bad players are satisfied with the elimination of 600 civil service jobs.

The Legislature has tried for several years to correct the system, and the issue has been quite divisive with battle lines being drawn. There are some wounds that will never heal, while attempts to work together for a secure system have advanced the issue to almost amicable discussions. The bad players were not in these discussions. The Workers’ Compensation system is approximately 92 years old and will be privatized by the end of the year and under the oversight of the West Virginia Insurance Commission. The claimants and employers will then be placed under the primary care of the mutual that was created by the Legislature and then to the open market for additional private carriers, who will be in the market for a profit.

I believe that protecting the injured workers and creating safer workspaces will not be easy. Employers will see a reduction in premiums and should be wary of the for-profit market. The persistence needed under the old system will still be necessary to insure that fraud and greed do not continue.

There are some that say there is finally closure to the system. Closure has come to approximately 600 employees moving to the mutual. They are losing their civil service protection because of greed and fraud. The Workers’ Compensation employees are the backbone and should be applauded for making the system work in spite of the years of obstacles.

Perdue is president of the West Virginia AFL-CIO.