The Attorney General’s Office has temporarily stopped entering into settlement agreements with claimants on Missouri’s Second Injury Fund.

Attorney General Chris Koster says he has also ordered the withdrawal of all outstanding settlement offers to claimants … because the fund is simply running out of money.

The Second Injury Fund began as a means to encourage employers to hire workers with pre-existing disabilities or injuries. It compensates employees for the combination of their pre-existing injuries with their workplace injury and ensures that workers who are injured while working for an uninsured employer are given medical care.

Koster says this puts injured workers looking for work at a disadvantage.

However, he says the fund has been in financial straits for several years now, so this comes as no surprise. The question now is whether the state should borrow money, change the law or mandate, or assist the fund with general revenue. Koster says these decisions need to be made at the executive and legislative levels.

"Our office, along with the State Treasurer’s Office, received notification Tuesday from the Missouri Department of Labor that the solvency of the Missouri Second Injury Fund is in question," Koster says. "It was represented to us that current fund revenues may be adequate to meet current obligations upon the fund until the end of the year. However, we were informed that new obligations upon the fund could potentially push the fund past solvency. Therefore, given information currently available, our office has determined it is in the best interests of existing claimants and the state that no new settlements be entered into until a greater understanding of the fund’s solvency is reached and until further consultations with executive and legislative leaders are completed."

Jessica Machetta reports [Download/listen MP3]

Two State Senators are taking part in rallies, this weekend, to urge passage of legislation requiring health insurance companies to cover autism. Senator Scott Rupp (R-Wentzville) and Senator Eric Schmitt (R-Glendale) are lead sponsors of autism insurance reform and are participating to bring attention to what they see as a need to pass meaningful legislation to help Missouri families impacted by the disorder.

Senator Rupp says that while the legislation overwhelmingly cleared the Senate during the 2009 session of the General Assembly it was never given a vote in the House. He wants to put on the pressure in 2010.

“This year we said, you know what, now we’re going to engage the grassroots, we’re going to engage the people, we’ll really make this a forefront issue,” said Rupp in an interview with the Missourinet. “Last year, you know, we played nice and it didn’t get us anywhere so this year we’re going to put the pressure on via the grassroots movement. And, at the same time, you’re educating more people about it, so it’s a win-win situation.”

Rupp says that while other neurological disorders are covered, the coverage does not routinely extend to autism, with opponents arguing about the costs associated with a mandate.

“Mandates do increase costs, but as a policy directive we have to look at what is the cost benefit,” said Rupp. We’ve looked at every other state that has done this. The Department of Defense has it. There are states that have had it for years. Every study that has been done has shown that it’s less than one percent premium cost.”

The first of four rallies was held in O’Fallon, drawing about 2,000 people. The remaining three rallies are scheduled for Friday evening in St. Joseph, Saturday morning in Kansas City, and Saturday afternoon in Springfield.

Download/Listen: Steve Walsh report (:60 MP3)