Three more bills that impact the state’s industrial insurance system are scheduled for hearings this week. The first would allow workers’ compensation applicants to receive benefits for more than the 60 days prior to their benefits application under specified circumstances. The second would change how an injured worker’s attorney fees and litigation costs are paid if they successfully appeal a denied worker’s compensation claim. The third is a companion to a bill that would change independent medical exams.

Change of circumstance look backs

HB 1902, sponsored by Rep. Joe Schmick (R–Colfax), would allow L&I to look back further than 60 days if there is a “change of circumstance” that warrants reopening or rearranging a workers’ compensation claim. Under current law, if a claim is reopened for a change of circumstance, the department can only look back 60 days prior to receipt of the claimant’s application in determining the amount of compensation to which the worker is entitled.

Under the bill, L&I can look back beyond the two months for calculating benefits if the application was delayed because the medical provider failed to timely complete the provider section of the application. The injured worker must have also submitted the worker information section of the application to L&I, their self-insured employer (if applicable), or the treating provider within 30 days of receiving the treatment necessitated by the change in circumstance.

Workers’ comp litigation costs

SB 5801, sponsored by Sen. Karen Keiser (D–Des Moines), changes how attorney fees and litigation costs are paid following an injured worker’s successful appeal of a denied workers’ compensation claim. Under current law, the worker can recuperate their attorney fees, where the court sets the “reasonable fee” to which the worker is entitled. The bill would change this by requiring L&I to pay both the worker’s attorney fees and litigation costs if the court reverses or changes a Board of Industrial Insurance Appeals decision. Similarly, an employer or retrospective rating group would have to cover the worker’s legal fees and costs if the employer or retro group appeals a board decision and a court upholds the board’s decision.

One issue of concern for cities is that this bill would eliminate the requirement that attorney fees be “reasonable” as determined by the court. Instead, the bill would simply require L&I or the employer to pay whatever the worker’s attorney charges in fees. Additionally, instead of being limited to attorney fees, the bill would also make a losing employer or L&I liable for the entire cost of the worker’s case. This will make appeals more expensive and potentially chill efforts to ensure worker’s compensation claims are accurate.

Independent medical exams

SB 5627, sponsored by Sen. Derek Stanford (D–Bothell), allows injured workers to record and have observers present at the independent medical exams used for determining eligibility for workers’ compensation. It is a companion to HB 1763, which we wrote about here. AWC opposes both bills because of the impact they might have on the availability and neutrality of independent medical exams.

Dates to remember

HB 1902 is scheduled for public hearing in the House Labor & Workplace Standards Committee on Tuesday, January 25 at 10 am.

SB 5801 is scheduled for public hearing in the Senate Labor, Commerce, & Tribal Affairs Committee on Wednesday, January 26 at 10:30 am.

SB 5627 is scheduled for a public hearing in the Senate Labor, Commerce, & Tribal Affairs Committee on Wednesday, January 26 at 10:30 am.