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Senate of Pennsylvania
Session of 2013 - 2014 Regular Session


Posted: November 6, 2013 10:31 AM
From: Senator John R. Gordner
To: All Senate members
Subject: Uninsured Employers Guarantee Fund
In 2006, the General Assembly created the Uninsured Employers Guaranty Fund (UEGF) within the Workers’ Compensation statute to address injuries to workers whose employers did not carry required Workers’ Compensation Insurance. UEGF was initially funded through a transfer from the Workers’ Compensation Administrative Fund. It is also funded through fines and restitution from the employers who have failed to provide coverage.

UEGF is underfunded at present, despite more than 300 prosecutions, subrogation and the filing of liens against uninsured employers.

Additionally, the Department of Labor and Industry has identified two problems relating to claimants filing claims with UEGF: unlimited time to file claims and payment of lost wages that cannot be verified.

In the near future, I intend to introduce legislation to address UEGF underfunding.

First, the legislation will provide for a $4 million transfer from the Administrative Fund to replenish the UEGF account. Additionally, the legislation will require an injured worker to file a claim petition within 120 days of the currently required notice to the fund. The worker must also provide proof of wages paid before filing a claim of lost wages under the act. Such proof may include pay stubs, tax returns, bank statements or written documentation of employment. Finally, the legislation will provide for medical treatment for injured workers through a list of designated health care providers. This provision is consistent with current Workers’ Compensation law.

The legislation will not limit medical treatment or pharmaceutical usage.

Introduced as SB1195