A proposal to fix the County disability scam

by BGR on June 6, 2005

The lead story in today’s Contra Costa Times covered the grand jury report that wagged its finger at a long-time County giveaway to its employees. According to the Times, “Injured workers receive a benefit known as ’salary continuation,’ which allows them to receive 86% of their salary tax free, for up to one year. The benefit enables many workers to earn more by staying on disability than by returning to work.”

Supervisor Gioia sagely observed that a “balance must be struck…We need to remove the incentive for people to stay out longer than they have to.” Ya think? I am blinded by the brilliance!

If Supervisor Gioia ever wanted to stop dissembling for just one second he would propose what practically every major corporation and well run government offers its employees, namely short and long-term disability benefit insurance. These policies are designed to provide workers with income protection if they are unable to work because of illness, injury or pregnancy. Here is what the State of Arizona offers its employees. Contra Costa County could pay for the basic plan and employee co-pays could increase coverage. This benefit would be in addition to regular workers’ compensation benefits and CDI as applicable.

Sure, injuries occur and most people don’t game the system, but the obvious incentive to get malingerers back to work is to cut off the money spigot and let people be more responsible for their own healthcare choices instead of putting taxpayers on the hook.

This stuff just isn’t that hard. It’s not a secret. So why do politicians like Gioia make it sound so mysterious and difficult to solve? Balance? Gioia doesn’t even know the correct equation. In fact, he’s got it bass ackward. The first and only balance he should address is tax dollars and the right of tax payers to sane, affordable, and accountable County government.

{ 1 comment… read it below or add one }

1 Editor June 17, 2005 at 9:07 am

In some cases, the county does offer disability insurance as an optional benefit, but it is unclear for whom and when.

Furthermore see the MOU with Local 1 that explains Continuing Pay (page 42). Even IF the County offers basic disability insurance programs, it should be these programs that make up for salary gaps while on Workers’ Comp benefits, not “Continuing Pay.”

To offer short or long term disability programs AND provide 86% percent of salary tax free just makes no sense at all and indicates mismanagement of employee benefits. Essentially the taxpayer is put on the hook for this giveaway to Local 1.

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