![\"Sen.](\"https:\/\/update.legislature.ne.gov\/wp-content\/uploads\/2025\/01\/SenHallstrom_inline.jpg\")
LB455, as introduced last session by Syracuse Sen. Bob Hallstrom, would require those reports be confidential by default and closed to public inspection except as necessary for the court to administer and enforce other provisions of the Nebraska Workers\u2019 Compensation Act.<\/p>\n
Under the bill, report access would be restricted to the involved parties and their legal counsel and insurers, state and federal agencies for investigations or statistical research and nonprofit organizations that provide services to the families of deceased employees. An injured employee also could waive confidentiality.<\/p>\n
Hallstrom said the measure would offset the \u201cavalanche\u201d of solicitations that injured employees receive from attorneys once a first injury report is filed and made public.<\/p>\n
\u201cThe communications by lawyers pursuant to information contained within the first injury report produce unnecessary conflict and needless litigation,\u201d Hallstrom said, \u201cthereby increasing the cost of [the] workers\u2019 compensation system and reducing the net benefits received by an injured employee.\u201d<\/p>\n
A Business and Labor Committee amendment would replace the bill with a modified proposal that would clarify the manner in which entities could access the report and allow access to a treating physician who provided care to the injured employee.<\/p>\n
The amendment also includes provisions of a measure heard by the committee last session that would update the distribution structure for subrogation claims, which allow an employer or their insurer to seek reimbursement from a third party that is liable for an employee\u2019s work-related injury.<\/p>\n
Currently, the court determines a \u201cfair and equitable\u201d distribution of a subrogation settlement proceeds in cases in which a prior written agreement was not obtained.<\/p>\n
The amended provisions of LB313, sponsored by Sumner Sen. Teresa Ibach, instead would distribute subrogation settlement proceeds based on a statutory formula. After deducting the reasonable expenses of making a recovery, the employee would receive one-third of the remaining settlement. The employer or workers\u2019 compensation insurer would be reimbursed for payments already made and the employee would receive the remaining balance.<\/p>\n
Ibach said the change would provide certainty to both employers and employees by implementing clear distribution standards.<\/p>\n
\u201cWe\u2019re just seeking to define what is fair and equitable,\u201d Ibach said. \u201cIt shouldn\u2019t adversely impact the workers at all.\u201d<\/p>\n
Sen. Jane Raybould of Lincoln offered an unsuccessful procedural motion to allow for extended debate on LB455. She noted that injured workers have several avenues to find and connect with attorneys beyond direct solicitation, including search engines, commercials, billboards and information hotlines.<\/p>\n
\u201cIt\u2019s not like we\u2019re restricting access to any legal counsel,\u201d Raybould said. \u201cThe majority of workers\u2019 compensation cases are resolved amicably between the employer and the employees.\u201d<\/p>\n
Omaha Sen. Megan Hunt opposed the bill and committee amendment, saying the proposal would make it more difficult for injured Nebraskans to access and understand their legal options. She said litigation does not occur simply due to attorney involvement, but rather because a claim was denied, delayed or disputed.<\/p>\n
The amount of litigation won\u2019t be reduced by preventing attorney outreach, she said, but by ensuring that claims are processed correctly, efficiently and transparently.<\/p>\n
\u201cThat first injury report can be the only moment when outreach happens \u2026 to ensure these people understand their options before deadlines pass or mistakes are made,\u201d Hunt said. \u201cThis bill asks us to believe that reducing legal resources for injured workers will somehow produce better outcomes for them.\u201d<\/p>\n
Speaking in opposition to LB455 and the committee amendment, Lincoln Sen. Danielle Conrad said privatization of first injury reports would serve as a \u201cproblematic shield\u201d against identifying unsafe patterns and practices that result in recurrent workplace injuries.<\/p>\n
She also questioned the benefit of moving to a subrogation reimbursement formula that would not account for the unique circumstances of each workers\u2019 compensation case.<\/p>\n
\u201cUniformity and certainty isn\u2019t always fair and equitable,\u201d Conrad said. \u201cA change from a fair and equitable rule \u2026 ensures that there will be less fairness and less equity in these complex issues that require a fact specific case-by-case determination.\u201d<\/p>\n
Sen. John Cavanaugh of Omaha also opposed the proposal. He said the subrogation change in the committee amendment would allow an employer to seek reimbursement through an injured employee\u2019s insurance if the third party at fault for the injury were uninsured or underinsured.<\/p>\n
\u201cThis bill \u2026 hurts working people and asks them to pay for insurance companies to have less loss,\u201d Cavanaugh said. \u201cIt\u2019s more money out of the pockets of working people to cover big insurance companies so they have less risk.\u201d<\/p>\n
The Legislature adjourned for the week Feb. 27 without voting on LB455. When debate resumed March 3, Hallstrom offered an amendment to the committee amendment that he said would address concerns from the opposition and replace the measure with a modified proposal.<\/p>\n
The Hallstrom amendment would remove the provisions of LB313 from the committee amendment and maintain the current \u201cfair and equitable\u201d distribution standard for subrogation claims in workers\u2019 compensation cases.<\/p>\n
It also would require first injury reports be confidential for 60 days after a report is filed. The workers\u2019 compensation court would be required to send a letter to the injured employee notifying them of their right to seek legal advice and representation.<\/p>\n
Conrad supported the Hallstrom amendment, calling it a “straightforward” compromise. The 60-day \u201ccooling off period\u201d still would allow injured workers to get the information they need, she said, and the amendment would ensure that workers receive a fair and equitable recovery in subrogation cases.<\/p>\n
Finally, the Hallstrom amendment includes provisions from Plymouth Sen. Tom Brandt\u2019s LB1077.<\/p>\n
Those provisions would update how workers\u2019 compensation claims data is reported to the National Council on Compensation Insurance for purposes of calculating the experience modification factors used to set a business\u2019s insurance premium based on its workers\u2019 compensation claim history compared to the industry average.<\/p>\n
Under the amendment, Nebraska businesses could use a net reporting system rather than a gross reporting system to allow for the exclusion of deductible payments in the determination of their experience modification factor.<\/p>\n
Brandt said approximately 43% of states that utilize NCCI services \u2014 including Colorado, Iowa, Kansas and Missouri \u2014 operate on a net reporting system. He said Nebraska businesses currently are at a disadvantage with competitors with lower EMF scores due to their ability to subtract deductible amounts from their losses.<\/p>\n
\u201cThis legislation would level the playing field with our neighboring states and give businesses a means to control their [EMF and reduce] premiums,\u201d Brandt said.<\/p>\n
Lawmakers voted 37-1 to adopt the Hallstrom amendment before adopting the committee amendment 37-0. LB455 then was advanced to select file on a 36-1 vote.<\/p>\n","protected":false},"excerpt":{"rendered":"
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