Comp in the Capitol: Pre-Filed Legislation for the 2016 Regular Session Beginning Today

Much like last year’s session, workers’ compensation as a target for lawmakers’ goals appears to be taking a backseat to the state’s still looming budget woes. However, several bills have been filed that address various technical aspects of the statute, including one bill addressing group funds’ financial stability, as well as a measure aimed at the potential adoption of an ODG formulary. Stick with Louisiana Comp Blog for full coverage of comp-related happenings until the Session ends on June 6th.

The summaries below are for the original versions of each piece of legislation. “Comp in the Capitol,” posted  weekly, will address any changes as each measure moves through the process.

 

 

 

HB 221 – Representative Marcus Hunter

  • repeals the prohibition of the receipt of workers’ comp benefits while incarcerated
  • Current status: First appeared in the Interim Calendar on 3/4/2016 after being provisionally referred to the Committee on Labor and Industrial Relations

 

HB 725 – Representative Chris Broadwater

  • mandates the adoption of a closed pharmacy formulary for workers’ compensation by July 1st, 2017, and the promulgation of related rules
  • the potential closed pharmacy formulary under this legislation would be developed with specialized input from workers’ comp system stakeholders
  • the bill as written mandates that the closed formulary in question “shall be the most recent version of the Workers’ Compensation Formulary of the Official Disability Guidelines Appendix A; treatment in worker’ comp, published by the Work Loss Data Institute
  • unlike the medical treatment guidelines, which are updated by statute every two years by the Medical Director, the formulary updates under this bill would automatically proceed pursuant to the ODG’s published updates
  • however, the bill provides for the Medical Advisory Council to request not to adopt a section or part of the automatic ODG updates, which the Director of the OWCA would take under advisement and then promulgate a rule in order to state that it is not accepted
  • Current status: First appeared in the Interim Calendar on 3/4/2016 after being provisionally referred to the Committee on Labor and Industrial Relations

 

HB 373 – Representative Chris Broadwater

  • concerns the “Incumbent Worker Training Program”
  • essentially keeps current law intact except for “providing an in-kind match for services” which, under the proposed legislation, would become an absolute requirement for training providers rather than one of four current interchangeable requirements to qualify
  • Current status: First appeared in the Interim Calendar on 3/4/2016 after being provisionally referred to the Committee on Labor and Industrial Relations

 

HB 345 – Representative Chris Broadwater

  • concerns private info and medical records for a workers’ comp claimant and who can have have access to them
  • present law requires that all of an employee’s medical records, records of payment of compensation and rehabilitation be kept confidential – police, attorneys representing the claimant, insurance fraud investigation and the attorney general are provided an exclusion to the confidentiality doctrine
  • current law also does not for the disclosure of the identities of all members of a particular carrier or group fund, or for the disclosure of dates for coverage for a specific employer or group
  • this legislation would extend the exception and make the same private info available to certain third parties “providing insurance support organization services for workers’ compensation compliance, monitoring, reporting, enforcement and fraud identification”
  • this bill is nearly identical to HB 611 by Representative Chad Brown
  • Current status: First appeared in the Interim Calendar on 3/4/2016 after being provisionally referred to the Committee on Labor and Industrial Relations

 

HB 280 – Representative Chris Broadwater

  • concerns group self-insurance funds and rules surrounding financial status of funds
  • changes the definition of “hazardous financial condition”
  • extends additional powers to the Department of Insurance including:
  • allowing a cease and desist order to include a prohibition on the fund from writing or incurring any new business or renewing prior business
  • allowing the Dept. to levy a fine of up to $4,000 for issues for which a fine was previously levied
  • giving the Dept. authority to place a find on a corrective action plan and to fix compliance and financial problems
  • allowing the Insurance Commissioner to establish protocol for the corrective action plan including mandatory training, monitoring and supervision, progress reports, or other measures designed to generate monies for the fund to continue operation
  • proposed law would also allow the Commissioner to impose fines, penalties, or revocation of certification for noncompliance with the corrective action plan
  • proposed law would allow provide for procedures for delinquency proceedings in instances in which a fund is insolvent, operating in hazardous financial condition, etc. and further provides for insolvency/hazardous financial condition penalties including supervision, conservation, rehabilitation, or liquidation
  • measure delineates a procedure and requirements for the dissolution of a fund which include applying for such status, ensuring a lack of outstanding liabilities, and coverage/irrevocable commitment from a licensed insurer that will provide payment of any outstanding liabilities
  • finally, proposed law would require that all remaining assets after dissolution be paid to participants in the fund
  • Current status: Appeared on Interim Calendar on 3/4/2016 after being provisionally referred to the Committee on Labor and Industrial Relations

 

HB 575  –  Representative Chris Broadwater

  • Constitutional Amendment: provides relative to civil service status of workers’ compensation judges
  • this amendment would reclassify workers’ comp judges appointed after January 1st, 2017 to as unclassified service persons, to be voted on in the statewide election November 8th, 2016
  • Current status: Read by title, under the rules, referred to the Committee on House and Governmental Affairs

 

SB 44 – Senator Ryan Gatti

  • concerns subrogation by an insurer or group fund when a claimant pursues a third party for damages associated with his/her injury
  • proposed law retains currents statute’s rules for the employer/insurer’s recovery from the third party but provides that if a suit or claim results in a settlement or judgment whereby the employer’s workers’ comp insurer/fund recoups at least 40 percent of their statutory lien from the third party, it must:
  • adjust the employer’s premium rating so that more premium is not paid due to an accident caused by a third party AND
  • refund all increased premium dollars paid by the employer as a result of the accident caused by the third party within 30 days of the receipt of recouped funds by the insurer/fund
  • in order to enforce this retroactive reduced premium rating, if an insurer/fund fails to return the pre-accident premium funds to the employer within the 30 period, the insurer/fund suffers a penalty of 1.5 times the amount of the statutory lien proceeds from the third party suit plus any attorney’s fees
  • to further enforce this 30 day period, failure to return to the employer a refund of all increased premiums paid as a result of the accident within 30 days of receipt of recouped funds shall result in penalties equal to 1.5 times the amount of the premiums paid by the employer, which are attributable to the accident, for the time period not to exceed 3 years prior to the third party settlement, plus any attorney’s fees incurred by the employer
  • Current status: Prefiled and under the rules provisionally referred to the Committee on Labor and Industrial Relations

 

SB 266 – Senator Gerald Long

  • repeals the exception of licensure for workers’ compensation adjusters in Louisiana effective August 1st, 2017
  • this bill would also remove the exemption for licensed out of state adjusters to bypass an examination to become licensed in Louisiana, with some exception for adjusters in good standing who secure a certification from their home state’s Insurance Commissioner within the current 90 day application period for a Louisiana license
  • however, proposed law permits the Commissioner to waive the workers’ compensation examination requirement for an individual who has three years of verifiable experience adjusting workers’ compensation claims within the preceding five years, provided the application is received on or before August 1st, 2017
  • this measure also contains changes to punishable/unethical actions in Title 22 and changes language regarding the leadership of independent adjusting companies
  • Current status: Introduced in the Senate; read by title. Rules suspended. Read second time and referred to the Committee on Insurance

 

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