A former high school teacher awarded a six-figure payout after years on workers’ compensation for a mental health injury says she felt constantly punished by the system and would have been happier to see the problem resolved so she could return to work.
Maria, who did not want her surname used, spoke out this week after the Andrews government conceded the current WorkCover model was “fundamentally broken”.
Melbourne woman Maria won a six-figure payout following years of being on WorkCover for a mental injury. She says the system made her mental health even worse. Credit:Penny Stephens
More than $1 billion in taxpayer funds have been poured into the system over the past two years to keep it afloat as demand rises, in part due to a spike in mental injury claims.
But Victorians who’ve managed to win payouts following drawn-out WorkCover cases have pleaded with the government not to make it more difficult to lodge or maintain mental health claims as part of any overhaul of the scheme.
Maria received WorkCover payments for about two years and later settled her mental injury case for more than $400,000. But she said it was “never about the money”.
“Had I kept working, I would have had my mental health and been a happier person,” she said.
“But they were trying to get me to go back to work without resolving the problem. I don’t know how they could make it any harder than what it is. Six years of my life are gone.”
Maria said she felt “constantly punished” as her case ground through the system.
“My mental health just went downhill. I stopped going out. I didn’t want to see anybody. You’re constantly on edge.
“I was so bamboozled by all of the paperwork and the people that were calling me [who] I thought were on my side but weren’t. Suicidal thoughts did cross my mind.”
Mental injury claims now represent 16 per cent of all new injury claims each year, according to WorkCover figures. Government sources said if the scheme remained unchanged, it was expected that by next year, mental health claims could represent 19 per cent of all claims and 50 per cent of scheme’s total costs.
Former IT worker Adam, who also didn’t want his surname used, said the system exacerbated workers’ ill health.
“Stop spending hundreds of thousands, if not millions, [of dollars] defending legitimate claims when you could save people’s mental states, and a fortune at the same time, by having human decency and doing the right thing by injured workers,” he told the government.
Adam has been on WorkCover payments for a mental injury for more than five years. He recently won a seven-figure payout that is still the subject of an appeal. He previously attempted to settle the dispute for much less.
WorkSafe – the body that manages workers’ compensation in Victoria – recorded an insurance operations deficit of $1.6 billion last financial year after a deficit of $3.9 billion the previous year. Payouts exceeded premium revenue by $1.1 billion last year.
Government modelling predicts the scheme will need more than $1 billion a year in support from the budget if action is not taken.
Shine Lawyers special counsel Thomas Bradley said that if the government wanted to reduce its WorkCover overheads, it should streamline the process.
“The delay tactics used by insurers when assessing claims … ultimately increase medical and legal costs by dragging out disputes and allowing injuries to worsen,” he said.
Victorian Ombudsman Deborah Glass previously said that most WorkCover claims were neither complex nor contentious and that the system had failed some people, particularly those who were vulnerable.
The state government has said all options are on the table when it comes to reform.
However, government sources said there was a particular focus on higher premiums for businesses, the spike in mental health claims and possible changes to payments for those not back at work after 130 weeks.
Victoria’s WorkCover premiums are lower than schemes in all states and territories, except for Queensland. The government said higher premiums alone would not fix the financial state of the scheme.
Asked about WorkCover on Wednesday, Premier Daniel Andrews stressed the need for “wraparound” services to support people returning to work. However, he also said tough calls would need to be made in the coming months.
“Of course, we have to provide [Victorians] with that longer-term care,” he said. “But I don’t think anyone, no one really, aspires to be on benefits after 130 weeks unless they absolutely have to.
“So there’ll be some difficult decisions to be made there. It’s not about being popular. It’s about doing what’s right.”
The Coalition has said the state needs an affordable and effective WorkCover scheme, blaming Labor for what it said was years of mismanagement.
If you or anyone you know needs support call Lifeline on 131 114, or Beyond Blue on 1800 224 636.
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