HOUSE BILL REPORT

HB 2800

BYRepresentatives Vekich, R. King, Sayan, Wolfe, Chandler and Forner

Allowing self-insured employers to close disability claims after July 1990.

House Committe on Commerce & Labor

Majority Report:  Do pass as amended.  (9)

      Signed by Representatives Vekich, Chair; Smith, Ranking Republican Member; Forner, Jones, R. King, Leonard, Prentice, Walker and Wolfe.

House Staff:Chris Cordes (786-7117)

AS REPORTED BY COMMITTEE ON COMMERCE & LABOR FEBRUARY 2, 1990

BACKGROUND:

Since 1986, self-insured employers have been authorized to close industrial insurance claims that involve only medical treatment or time-loss payments.  The claims may be closed by the self-insurer only if the claims do not involve permanent disabilities and have not raised disputes that required intervention by the Department of Labor and Industries, and the injured worker has returned to work with the employer.  The authority to close these claims expires July 1, 1990.

SUMMARY:

BILL AS AMENDED:  Self-insured employers' authority to close industrial insurance claims is made permanent for qualified claims involving only medical treatment or time-loss benefits.

AMENDED BILL COMPARED TO ORIGINAL:  The amendment deletes (1) the second reference to the sunset date of the claims closure program; and (2) duplicative language relating to self-insurers' claims closure authority.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Melanie Stewart and Lee Eberle, Washington Self-Insurers Association.

(Neutral):  Jody Moran, Department of Labor and Industries.

House Committee - Testified Against:      Michael Welsh, Washington State Trial Lawyers Association; Jeff Johnson, Washington State Labor Council; and Bob Dilger, Washington State Building and Construction Trades Council.

House Committee - Testimony For:    Self-insurers have been closing these industrial insurance claims for several years now with good results.  Only the most uncomplicated claims may be closed under this authority.  Any protest by the worker requires the claim to be referred to the Department of Labor and Industries.  Most of the questions raised by the department on audit are easily answered.

(Neutral):  The department's study shows that most claims, approximately 93 percent, are closed properly by the self-insurer. Most of the deficiencies were minor problems.

House Committee - Testimony Against:      Self-insurers too often view themselves as adversaries of their workers.  Only the department, as a neutral agency, should authorize closure of workers' injury claims.  Self-insurers have been shown to make errors in nearly 10 percent of the claims.