Tag: Workers Comp

A bill introduced in Maryland would subject a portion of financial recovery in workers compensation cases to child support arrearages.

Senate Bill 71, introduced Wednesday, states that 25% of the net recovery by workers comp claimants would be subject to execution on a judgment for outstanding child support.

Net recovery is defined as money that a claimant receives in comp cases after deductions for attorneys fees, expenses, medical bills and any liens or other outstanding claims for personal injury.

The bill was sent to the Senate Judicial Proceedings Committee for consideration.

Companion legislation in the state House of Representatives – HB 650 – was carried over from the previous legislative session and was passed on second reading in April.  

 

Bills introduced in Virginia on Tuesday would create penalties for workers compensation insurers who fail to make timely payments to injured workers and define what would be considered a repetitive stress occupational injury.

H.B. 1966 states that if any payment is not paid within two weeks after it becomes due, there would be added to such unpaid compensation an amount equal to 20% of the payment due “unless the (Workers’ Compensation) Commission finds that any required payment has been made as promptly as practicable and …  there is good cause outside the control of the employer for the delay or … in the case of a self-insured employer, the employer has issued the required payment to the employee as a part of the next regular payroll after the payment becomes due.”

The bill also proposes that after the first occurrence of a failure to pay within two weeks after it becomes due there shall be added to each such unpaid compensation, in addition to the 20% penalty, fines of $100 multiplied by each occurrence, up to $500 for a fifth and any subsequent failures to pay.

H.B. 1763 proposes that the state include in its occupational disease language “injuries or diseases from conditions resulting from repetitive and sustained physical stressors, including repetitive and sustained motions, exertions, posture stresses, contact stresses, vibrations, or noises.”

The bill states that such coverage does not require that the injuries or diseases occur over a particular time period, “provided that such time period can be reasonably identified.”

 

 

Two states have introduced bills that would clear red tape for first responders to file workers compensation presumption claims.

Virginia lawmakers on Tuesday introduced H.B. 1905, which would create a presumption as to death or disability from back, hip, knee and neck injuries for first responders who have worn a “duty belt” for at least five years. The bill defines a duty belt as a belt used to hold a firearm, handcuffs or other wrist restraints, baton, stun weapon, portable radio, pepper spray, ammunition magazines, tourniquet and other items related to law-enforcement work.

H.B. 1775, also introduced Tuesday in Virginia and sent to committee, would add anxiety disorders and depression to compensable mental injuries suffered by those in law enforcement, putting such conditions at par with post-traumatic stress disorder as a result of a qualifying event witnessed while in the line of duty. Language in S.B. 904, introduced on Jan. 5, would also add such disorders to the state’s PTSD presumption. That bill would also add dispatchers to qualifying professionals, as would a separate bill filed Monday, S.B. 1088.

Similarly, Connecticut H.B. 5184, filed Wednesday  and sent to committee, would add 911 dispatchers to that state’s PTSD presumption law for first responders.

A legislative proposal in Virginia would direct the Department of Labor and Industry to create a working group to study the issue of workplace violence across the state.

House Bill 1715, introduced Monday, would direct labor officials to convene a group to study the incidence and effects of workplace violence and suggest ways to mitigate it.

The measure would require the group to report its findings and recommendations to the chairmen of the state House Committee on Commerce and Energy and the Senate Committee on Commerce and Labor no later than Dec. 1, 2025.

Despite looming economic uncertainty, the workers compensation insurance market’s profitability will likely continue throughout 2023, making for simpler renewals, experts say.

The line remains profitable for insurers, and the trend of decreasing rates will likely continue, they say.

Wage inflation and other macroeconomic issues, though, could add some pressure to the line.

“It’s remaining a profitable line for not only the insurers but also a favorable line of insurance for buyers,” said Brandi Underhill, senior vice president and director of P&C technical intelligence for broker Lockton Cos. LLC.

While other liability lines, such as auto and general liability, have been in a harder market cycle for the past several years, comp has seen an “extended soft period,” she said.

“The claims trends have been favorable over the more recent years, which has led to the lower loss costs and actuarial projections and lower rate filings,” Ms. Underhill said.

“Overall, the market continues to perform well. Frequency is still softly being reduced,” said Pat Edwards, Chicago-based workers compensation practice leader with Risk Placement Services Inc., a wholesale division of broker Arthur J. Gallagher & Co.

The comp market has seen eight-plus years of consecutive underwriting profitability, he said.

2021 data showed a combined ratio of 87%, representing the fifth straight year below 90%, Ms. Underhill said. A loss ratio of below 100% indicates an underwriting profit for insurers.

The industry has also seen much in the way of rate reductions, with expected double-digit rate decreases projected for 2023, Mr. Edwards said.

“Obviously, comp has performed well,” Mr. Edwards said. “It’s been the nicest house on the block. Everybody wants to view comp as a safe haven.”

Jeff Eddinger, Boca Raton, Florida-based senior division executive director of regulatory business management with the National Council on Compensation Insurance, said the “workers comp market is in a very strong position.” 

Mr. Eddinger said comp’s profitability can be attributed to the downward trend in claim frequency.

Still, the market may encounter some challenges in 2023, including economic uncertainty surrounding a possible recession.

Comp buyers also continue to face labor challenges spurred by a non-traditional and lower-skilled workforce due to labor shortages, according to Ms. Underhill.

“We anticipate the 2023 renewal space for workers compensation will be impacted by wage increases, increased medical costs, both economic and social inflation, along with the ninth consecutive year of bureau loss cost decreases,” Sharon Kent, director of workers compensation for Iowa-based insurer GuideOne Insurance, said in an email.   

“We need to ensure renewal rate adequacy for exposures in our niche segments and – as a result – may conservatively consider the adoption of amended loss costs in 2023 (where permitted by state statute),” Ms. Kent wrote, referring to losses in other insurance sectors.

Looking ahead, experts noted a continued dip in comp claim frequency contrasted with an uptick in claim severity, which could also drive up future rates.  

The increase in claim severity – an issue the industry has been watching — could be due to factors such as an overworked and aging labor force, and individuals with comorbidities, Mr. Edwards said.

James Sallada, casualty leader for North America with broker Willis Towers Watson, said wage inflation also continues to affect insurance policy renewals, noting it’s important for the industry to monitor macroeconomic conditions in the event a recession hits.

Still, he said, comp continues to be one of the most, if not the most, “attractive line of business in P&C right now, which is why there is an abundance of capacity.”

 

Lawmakers in New York and Virginia are proposing changes to state law regarding notifications to employees in workers compensation cases.

Virginia Senate Bill 1037, introduced Sunday, would require employers to provide notice to covered workers of the right to dispute a claim denial through the state’s Workers’ Compensation Commission.

Under the proposal, if an employer or insurer denies a worker’s request for comp benefits, the denial letter must include a notice that the worker has a right to dispute the claim by requesting a hearing with the commission. Employers that fail to provide such notice could face civil penalties.

New York legislators Monday introduced Assembly Bill 571, which would require injured workers in comp cases to be notified if a new claims representative is assigned to their case or if it is determined that the assignment of a personal claims representative is no longer needed.

Insurers or self-insured employers would be required to provide such notice within 14 days.

Indiana lawmakers are considering a bill that would create a state-funded program to provide unspecified income and mental health services to first responders who have been involved in “a qualified critical incident.”

H.B. 1136, introduced Tuesday, would establish the Indiana “first responders mental health wellness fund and program” and would cover those who are diagnosed with post-traumatic stress disorder following any qualifying incidents they may have encountered, which are listed in the bill and include death, serious injuries and events involving children.

The state’s Division of Mental Health and Addiction would operate the program, receiving an annual allocation from the state Assembly, according to the bill.

The bill was referred to Committee on Veterans Affairs and Public Safety.

 

 

 

Lawmakers in Washington state are set to consider expanding the types of physicians that would be able to treat injured workers in the workers compensation system. 

In addition to adding “osteopathic physician, chiropractor, naturopath, podiatric physician, optometrist, dentist, licensed advanced registered nurse practitioner, physician assistant” to the list, H.B. 1197 proposes adding “psychologist in claims solely for mental health conditions” to the state’s comp code.

If passed, the changes would go into effect July 1, 2025, and would be applied retroactively.

 

 

Tennessee legislators are proposing amendments to the state’s workers compensation law regarding medical fees reimbursement and attorneys fees.

House Bill 82, introduced Monday, would, among other things, enable employees to receive reimbursement for medical expenses in cases in which the employer or workers comp insurer wrongfully fails to reimburse them for any medical expenses in situations in which the worker wins a comp settlement.  

The award would be applicable in instances in which the employer or insurer either fails within 60 days to provide “reasonable and necessary” medical expenses or fails to reimburse in cases in which the employee foots the bill.

The bill also proposes to amend a section of the current comp law dealing with attorneys fees.

Currently, attorneys fees cannot exceed 20% of the amount of an injured worker’s recovery or award, and while that aspect of the law would remain in effect, HB 82 would revise the law to say that fees cannot exceed 20% of the first 450 weeks of the injured worker’s award in certain instances.

 

Illinois Gov. J.B. Pritzker signed a budget bill Monday that included provisions addressing the increasingly popular topic of reducing injuries among warehouse workers.

Pritzker signed S.B. 1720, a budget implementation act for fiscal year 2023 that also creates the Warehouse Safety Standards Task Force.

The task force is charged with providing the governor and lawmakers quarterly updates about its findings, discussions and decisions. The group must submit a final report to the governor and General Assembly by Jan. 1, 2025.

The bill does not identify specific issues or topics relating to the safety of warehouse workers for the task force to investigate.

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