There is no workers’ compensation crisis in Iowa. In fact, Iowa’s workers’ compensation system was given an “A” when compared to other states by the Work Loss Data Institute. “State Report Cards for Workers’ Comp” Work Loss Data Institute 2/24/03, p. 3. Some of the reasons for their findings were because Iowa has the lowest percentage of work injuries requiring a worker to miss work and the best outcome for injured workers with low back strains for example. “State Report Cards for Workers’ Comp” Work Loss Data Institute 2/24/03, p. 2.

The Workers’ Compensation Research Institute (an Institute funded by insurance and management) on May 10, 2004, finished an exhaustive study of Iowa’s system and concluded “Iowa has achieved a number of results that have eluded other states - namely, higher maximum weekly benefit levels to workers and stable costs to employers. Iowa pays disability benefits at 80 percent of the workers’ weekly “spendable earnings” (after taxes are deducted) at the time of the injury. (emphasis added). The only bad thing the Institute found is that the state legislature has not properly funded the agency which has increased delays in resolving disputed claims.

According to the National Academy of Social Insurance from 2002 to 2003, there was actually a decline in benefits paid to injured workers in Iowa. 2005 National Academy of Social Insurance- Workers’ Compensation: Benefits, Coverage and Costs.

Furthermore, according to Risk and Insurance, Iowa’s workers’ compensation costs are 20% below the national average. (”If a manufacturing firm located entirely within Connecticut had insurance costs of $121,000 (21 percent above national average), and moved to Iowa, the manufacturer’s costs would decline to $80,000, or 20 percent below the national average. In California, the insurance bill would jump to $227,000.”) Risk and Insurance, March 3, 2003 Cover Story.

Iowa businesses are not leaving the state of Iowa and new businesses are not locating elsewhere because of the workers’ compensation system. The fact is that Iowa’s system costs 20% less than the national average. Increased corporate and insurance company profits are the only reason to reduce benefits to injured workers in a state given an “A” for being a balanced system. It is not acceptable to place increased profits before injured Iowa workers’ providing the basics of food and shelter to their family when the system is working fine. The legislature should be focused on keeping the businesses we have and promoting new businesses to come to Iowa where our workers’ compensation rates are 20% below the national average and our system is fair to both business and its workers.