OVERVIEW

Senate File No. 1603 is a proposal by the Workers’ Compensation Advisory Council to amend the workers’ compensation law.  The Council is a statutorily created entity composed of six representatives of business and six of labor.

Sections 1 and 2 expressly provide that injuries caused by a mental stimulus and resulting in a mental injury may be compensated under the workers’ compensation law.  (An example could be to see a coworker crushed to death and then develop a fear of going to work--a mental stimulus with a mental injury.)  These sorts of injuries have been held not compensable by long standing court precedent.

Section 3 raises the statutory cap on attorney’s fees from $13,000 to $26,000.

Section 4 regulates the award of attorney fees when the employer unsuccessfully resists the payment of compensation.

Section 5 indexes the maximum compensation for wage loss by setting it at 102 percent of the statewide average weekly wage.  This repeals a set dollar maximum weekly compensation.  The maximum is to be adjusted annually, each October 1.

Section 6 limits the receipt of job placement and job development services.  These services may not exceed 20 hours per month or 24 consecutive or intermittent weeks.

Section 7 requires that any medical, rehabilitation, or disability case management services provided by an individual qualified rehabilitation consultant must be provided under an approved rehabilitation plan.

Section 8 requires that most administrative conferences on rehabilitation issues be held within 21 days of receipt of a request for a conference.

Section 9 requires that the prevailing charge for a medical service, supply, or article be based on no more than two years of billing data immediately preceding the date of service.

Section 10 eliminates the ability of a health care provider to seek greater compensation for services from a workers’ compensation insurer if the provider has accepted payment in full for the services from other health care insurance coverage.

Section 11 amends the timing and cap of workers’ compensation cost of living adjustments.  The cap is raised from two percent to three percent.  The first adjustment is to be made on the third anniversary of injury instead of the current law fourth anniversary.

Section 12 requires rules to be adopted regarding treatment standards for the long term use of pain medications.

Section 13 creates a pilot patient advocacy program for employees with back injuries who are considering back fusion surgery.

JCF/syl