SENATE BILL REPORT

SB 5280

BYSenators Tanner, Deccio, Vognild, Smitherman and Newhouse

Changing procedures relating to appeals of orders of the department of labor and industries.

Senate Committee on Commerce & Labor

Senate Hearing Date(s):January 26, 1987; February 25, 1987; February 26, 1987

Majority Report:  That Substitute Senate Bill No. 5280 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Warnke, Chairman; Anderson, Lee, Vognild, Williams, Wojahn.

Senate Staff:David Cheal (786-7576)

                  February 27, 1987

AS REPORTED BY COMMITTEE ON COMMERCE & LABOR, FEBRUARY 26, 1987

BACKGROUND:

Injured workers receiving workers' compensation benefits must cooperate with medical care and rehabilitation or the Department, or self-insurer, with Department approval, can reduce or suspend benefits during the duration of the noncooperation.  A worker who incurs traveling expenses in connection with an examination, at the request of the Department, is to be reimbursed by the Department.  If a worker is absent from work due to a compulsory examination, reimbursement must be provided by the Department or self-insurer, as the case may be.

SUMMARY:

The requirement that the Department approve suspension or reduction of benefits by a self-insurer for worker noncooperation is removed.  However, the self-insurer would have to provide notice to the worker and the Department.  Whether the notice is prior to the suspension/reduction is not specified.

Under current law, if the worker has "good cause" for noncooperation, benefits may not be suspended/reduced.  Good cause is established by petition to the Director.

Reimbursement for treatment rather than only for the examination is added, and this provision is made applicable to self-insurer exams as well as Department-ordered exams.  However, reimbursement is from the accident fund.

Reimbursement is provided for time lost from work for treatment rather than just examination.

EFFECT OF PROPOSED SUBSTITUTE:

Detailed notice procedures and content are provided.  Before suspension occurs, workers must be notified of the consequences of noncooperation.  If suspension is ordered by the self-insurer, the worker must be notified of the right to protest to the Director.  A penalty is provided of the greater of $500 or benefits withheld in the event of an improper suspension or reduction of benefits.

Provisions for travel expense and time-loss in connection with medical treatment are removed.

In a dispute between a self-insurer and the Department over liability for a claim, the Board of Industrial Insurance Appeals determines responsibility for the claim.  Benefits must be paid promptly according to the claim as it is filed with adjustments made, if necessary, upon determination of liability.

Fiscal Note:      available

Senate Committee - Testified: Melanie Stewart Gerla, self-insured; Randy Boek, Scott Paper; Cliff Finch, AWB; John Winney, Injured Workers Awareness Committee; Joe Dear, Department of Labor and Industries