The Business and Labor Committee heard testimony March 18 on two bills that would change certain provisions of Nebraska\u2019s workers\u2019 compensation system.<\/p>\n
LB324, sponsored by Omaha Sen. Scott Lautenbaugh, would revise the interest rate applicable to a workers’ compensation benefit award in cases in which an attorney’s fee is allowed from the rate provided in statute \u2013 currently 14 percent \u2013 to the judgment rate.<\/p>\n
The bill also would allow employees, prior to the time of sustaining an injury, to \u201copt out\u201d of having first injury reports relating to their workplace injuries made available for public inspection or copying except under specified circumstances.<\/p>\n
In addition, the bill stipulates that no compensation would be allowed if an employee falsely represented his or her medical condition at the time of hiring and a causal connection existed between the false representation and an injury.<\/p>\n
Robert Hallstrom, representing the Nebraska Chamber of Commerce and Nebraskans for Workers\u2019 Compensation Equity and Fairness, testified in support of the bill. The 14 percent interest rate may have been appropriate when it was put in place, he said, but is out line with current interest rates.<\/p>\n
Hallstrom said interest rates in workers\u2019 compensation benefit cases should be tied to other money judgment rates.<\/p>\n
\u201cVirtually all other money judgments are at 2 percent,\u201d he said.<\/p>\n
Robert Moodie of the Nebraska Association of Trial Attorneys testified in opposition to the bill, saying the 14 percent interest rate applies only when an award is not paid within 30 days. The provision is based on the same principle that encourages people to pay their taxes on time, he said.<\/p>\n
\u201cAny employer that pays benefits when they\u2019re supposed to pay them is not going to pay any interest,\u201d Moodie said.<\/p>\n
LB584, sponsored by Papillion Sen. Jim Smith, would require the scope and duration of medical, surgical and hospital services to be provided in accordance with the official disability guidelines published by the Work Loss Data Institute.<\/p>\n
Under the bill, no insurer, risk-management pool or self-insured employer would be responsible for charges for medical, surgical or hospital services not provided in accordance with the official disability guidelines unless such services were:
\n\u2022 provided in a medical emergency;
\n\u2022 preauthorized by the insurer, risk-management pool or self-insured employer; or
\n\u2022 approved by an independent medical examiner.<\/p>\n
If the parties to a dispute agreed to use an independent medical examiner, the medical findings of the independent medical examiner would be binding on the parties and constitute a final resolution.<\/p>\n
Smith said the bill would save time and money by eliminating unnecessary back and forth between providers and payers.<\/p>\n
\u201cTwenty-eight states have adopted evidence-based utilization and treatment guidelines and have seen success with this policy,\u201d he said.<\/p>\n
Dr. Doug Martin of St. Luke\u2019s Center for Occupational Health Excellence in Sioux City testified in support of the bill. He said the involvement of employers, attorneys, human resource professionals and state and federal agencies can complicate and delay treatment of injured workers.<\/p>\n
\u201cIt\u2019s not just the doctor and the patient,\u201d Martin said, adding that following specified treatment guidelines would streamline the process.<\/p>\n
\u201cThe goal here is only on one single thing,\u201d he said, \u201cand that is to do what is in the best interest of the Nebraska patient worker.\u201d<\/p>\n
Omaha orthopedic surgeon Ian Crabb testified in opposition to the bill, saying it would not improve the state\u2019s workers\u2019 compensation system. Most disputes regarding claims involve whether or not an injury happened at work, he said, not whether the treatment provided to a claimant is appropriate.<\/p>\n
Furthermore, he said, providers already have access to evidence-based treatment guidelines.<\/p>\n
\u201cFrom a treatment standpoint \u2026 the guidelines don\u2019t give me much,\u201d Crabb said. \u201cIt is just a laundry list of possible options.\u201d<\/p>\n
The committee took no immediate action on either bill.<\/p>\n","protected":false},"excerpt":{"rendered":"
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