HOUSE BILL REPORT
SHB 2537
As Passed Legislature
Title: An act relating to establishing a pilot program to allow employers to assist employees in completing applications for industrial insurance benefits.
Brief Description: Establishing a pilot program to allow employers to assist employees in completing applications for industrial insurance benefits.
Sponsors: By House Committee on Commerce & Labor (originally sponsored by Representatives Conway, Condotta, McCoy, Hudgins and B. Sullivan; by request of Department of Labor & Industries).
Brief History:
Commerce & Labor: 1/18/06, 2/2/06 [DPS].
Floor Activity:
Passed House: 2/10/06, 97-1.
Passed Senate: 3/3/06, 45-2.
Passed Legislature.
Brief Summary of Substitute Bill |
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HOUSE COMMITTEE ON COMMERCE & LABOR
Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 9 members: Representatives Conway, Chair; Wood, Vice Chair; Condotta, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; Crouse, Holmquist, Hudgins, Kenney and McCoy.
Staff: Sarah Dylag (786-7109).
Background:
Industrial Insurance
Industrial insurance is a no-fault state workers' compensation program that provides medical
and partial wage replacement benefits to covered workers who are injured on the job or who
develop an occupational disease. Employers who are not self-insured must insure with the
state fund operated by the Department of Labor and Industries (Department).
When an accident occurs to a worker, the worker has a duty under the Industrial Insurance
Act to report the accident "forthwith" to the employer or supervisor in charge of the work.
The employer, in turn, has a duty to report the accident and resulting injury "at once" to the
Department if the worker has received medical treatment, has been hospitalized or disabled
from work, or has died as the apparent result of the injury.
Workers must also file a claim application with the Department or self-insured employer,
together with a certificate of the attending health services provider. The attending provider
must inform the worker of his or her rights under the Industrial Insurance Act and assist the
worker in filing the claim application.
1998 JLARC Recommendations
In its 1998 Workers' Compensation System Performance Audit, the Joint Legislative Audit
and Review Committee (JLARC) made a number of recommendations concerning the
workers' compensation system, including Recommendation 2:
"The Department should adopt an alternative system for the reporting of injuries under which
the worker would report to the employer and the employer would report to the Department.
An educational effort should be launched to promote this method of reporting."
SHB 1918 (2005)
The 2005 Legislature passed, and the Governor signed into law, SHB 1918, which requires
the Department to develop an initiative to encourage workers to report industrial insurance
injuries to the employer and the employer, in turn, to report the injuries to the Department.
As part of the initiative, the Department must take steps to educate workers and employers
about the benefits of prompt reporting.
In addition, by December 1, 2006, the Department must:
Summary of Substitute Bill:
Department Initiative
The scope of the Department's initiative is amended to include encouraging the employer to
provide assistance to the worker in completing the application for compensation.
Pilot Project
By January 1, 2007, the Department must implement a pilot project in which employers assist
workers in filing workers' compensation claims. The pilot project does not replace the
current method of reporting.
The pilot project must consist of employers who voluntarily participate and represent a
cross-section of industries, geographic areas, union and nonunion workers, large and small
businesses, and other criteria established by the Department. The Department may develop
requirements or rules for employers who participate in the pilot program, including
provisions to ensure prompt reporting of the claim and communicating a worker's rights and
responsibilities under the pilot program. During the first year of the pilot, the number of
participating employers must not be more than 500. This number may be increased to 750
during the second year of the pilot.
During the pilot period, the Department must consider steps to address the unique needs and
issues of small employers.
The pilot project expires on July 1, 2009.
Reports to the Legislature
The requirement for the Department to develop and make statutory recommendations by
December 1, 2006 is eliminated and the due date for the Department's report to the
Legislature is extended to December 1, 2007 and December 1, 2008. The report must include
results from the pilot project and whether additional statutory changes are needed.
Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.
Testimony For: (In support) Employers want to be engaged in the system. Under current
procedure, it takes two weeks after a worker goes to a doctor until the Department gets
information from the employer. The doctor currently mails information to the Department,
the Department mails it back to the employer, and the employer mails it back to the
Department.
For small businesses, this method of reporting could provide an opportunity for the
Department to immediately assist with ways to best manage claims. One suggested change is
including language that both large and small businesses will be part of the pilot.
(Neutral) There are concerns about whether this pilot will really address the issue of prompt
payment. Prompt payment occurs when the provider is involved. Under the current system,
there is no payment of timeloss until a certification is provided by a medical provider. This
pilot will not change that. An alternative to the current system that is working now are the
Centers for Occupational Health Education (COHE). In the COHE projects, the physician
contacts the employer and there is direct involvement with the employer that way.
(Information Only) This is a measure that enables the Department to begin to test the
hypothesis that when workers who are injured on the job notify employers early, there will be
quicker, more appropriate medical care, early return to work, and other benefits. In most
other states, employees report the injury to the employer and the employer begins the process.
All other states have employer reporting in some form.
Last year's bill was an effort to begin employer reporting in this state by studying and
educating people about it. But we already know about the possible benefits of employer
reporting and waiting two more years to actually start is not necessary. This bill creates a
voluntary pilot. This pilot will create good information for policymakers to decide how to
move forward with employer reporting. It is worth having the Department looking at this
issue and determining the benefits to workers and employers.
The pilot does not bind the employee to a certain method of reporting. Even if an employer
participates in the pilot, the employees of that employer are not bound to employer reporting.
Testimony Against: The COHE projects are a better method of dealing with these issues.
The 2004 results of the Valley COHE shows more than 80 percent of organizations getting
the report of accident form submitted in three days or less. Patient and employer satisfaction
in the COHE projects is high. The health services coordinators in the COHE projects
facilitate conversations between employers and employees.
Under the COHE projects, people get back to work quicker. There are real concerns with this
pilot, including employers directing employees to certain physicians. Also, supervisors and
managers in businesses are measured based on their safety record so there is an incentive for
them to not get claims involved in the workers' compensation system.
Persons Testifying: (In support) Rick Slunaker, Associated General Contractors; Dan Fazio,
Farm Bureau; Gary Smith, Independent Business Association; Carolyn Logue, National
Federation of Independent Business; and Kris Tefft, Association of Washington Business.
(Information only) Gary Weeks and Robert Malooly, Department of Labor & Industries.
(Neutral) Robby Stern, Washington State Labor Council.
(Opposed) Jerri Wood, Valley Medical Center COHE and Labor Caucus Chair.