FINAL BILL REPORT

HB 462

PARTIAL VETO

                                  C 470 L 87

BYRepresentatives Cantwell, Sprenkle, Braddock and Wang; by request of Department of Labor and Industries

Changing provisions relating to industrial insurance payments and penalties.

House Committe on Commerce & Labor

Senate Committee on Commerce & Labor

SYNOPSIS AS ENACTED

BACKGROUND:

Beginning July 1, 1987, the Department of Labor and Industries is required to pay for hospital services on the basis of diagnosis-related groups (DRGs).  During 1985, the department established a health care cost containment unit to develop methods for controlling medical costs.  The department has implemented several cost saving programs and has developed others that could provide alternatives to a DRG-based hospital payment plan.

Legislation enacted in 1986 established penalties for health care providers who obtain overpayments on industrial insurance billings.  The provision establishing a criminal offense for overpayment obtained by intentionally using false statements was not specifically limited to health care providers.

Offenders performing community services may be regarded as workers for industrial insurance purposes at the option of the local government for which services are performed.

SUMMARY:

After July 1, 1987, the director of the Department of Labor and Industries is permitted to pay for inpatient hospital services on the basis of either diagnosis-related groups, contracts for services or other prudent, cost- effective payment methods.

The provision establishing a class C felony for any person who makes a false statement or misrepresentation in an application for payment under the industrial insurance law does not apply to injured workers.

Workers' compensation benefits for offenders performing community services for local governmental entities or nonprofit organizations is limited to medical benefits only.

VOTES ON FINAL PASSAGE:

      House 93   0

      Senate    49     0(Senate amended)

      House 96   0(House concurred)

EFFECTIVE:July 1, 1987

Partial Veto Summary:  The section limiting workers' compensation benefits for offenders performing community services is vetoed.  (See VETO MESSAGE)