Date: 04/22/2014

Final
BILL SUMMARY for HB14-1383

HOUSE COMMITTEE ON BUSINESS, LABOR, ECONOMIC, & WORKFORCE DEVELOPMENT

Votes: View--> Action Taken:
Refer House Bill 14-1383 to the Committee of the WPASS



01:35 PM -- HB 14-1383

Representative Williams, chair, called the meeting to order. A quorum was present. Representative Williams presented House Bill 14-1383, concerning the required number of physicians that must be provided to an injured employee for selection of a treating physician in workers' compensation cases. Under current workers' compensation law, an employer or insurer must designate at least two healthcare providers, willing to treat injured employees, at two distinct locations without common ownership, for injured employees to select for treatment. There is an existing statutory exception if there are not two healthcare providers at distinct locations or without common ownership within 30 miles of each other.

This bill increases the required number of designated healthcare providers to four with at least one at a location distinct from the three other designated healthcare providers. The bill adds exemptions for rural areas (within 30 miles of an employer's place of business) as follows: if there are more than three, but fewer than nine healthcare providers willing to treat injured employees, the employer or insurer may designate two healthcare providers at two distinct locations without common ownership; or if there are not two providers at two distinct locations without common ownership, then an employer may designate two healthcare providers either at the same location or with common ownership.

Representative Williams distributed a handout to the committee (Attachment A) prepared by the National Council on Compensation Insurance (NCCI) and discussed the details of the bill. She stated that the bill would not increase costs for employers. She stated that the bill has support from both business and labor and discussed the stakeholder process on the bill. Representative Williams responded to questions from the committee about how the bill affects current employer workers' compensation insurance policies.

The following individuals testified on the bill:

01:48 PM --
Kris Owens and Hank Hahne, representing the Colorado Self Insurers Association (CSIA), testified against the bill. Mr. Hahne discussed the work of his organization, his association with Colorado Springs School District 11, and described why employers become self-insured. Mr. Hahne stated that there is no problem with workers' compensation currently. He stated that the bill will do harm because it allows employees to see physicians who are not specialists, thereby delaying the healing process and increasing workers' compensation costs. Mr. Owens explained how the bill would increase workers' compensation costs for CSIA members. Mr. Owens and Mr. Hahne responded to questions from the committee.

02:04 PM --
Phil Hayes, representing the American Federation of Labor-Congress of Industrial Organizations (AFL-CIO), testified in support of the bill. Mr. Hayes discussed the stakeholder process on the bill and the legislative history of workers' compensation in Colorado. Mr. Hayes discussed a recent mediated forum held by the Colorado Department of Labor and Employment (CDLE) for stakeholders. He explained the Division of Independent Medical Examiners (DIME) mechanism, and stated that it provided a necessary third-party assessment. He stated that the Workers' Compensation Cost Containment is untouched by the bill. He stated that the bill represents a good compromise. Mr. Hayes responded to questions from the committee.

02:17 PM --
Patrick Boyle, representing the Colorado Competitive Council (C3), testified in support of the bill. Mr. Boyle stated that while the bill addresses a problem in the state's workers' compensation system, it also protects what is good and working in the system.

02:21 PM --
Loren Furman, representing the Colorado Association of Commerce and Industry (CACI) and the Denver Metro Chamber, testified in support of the bill. Ms. Furman discussed the thorough and exhaustive process that produced the bill. She stated that the reason her organizations support the bill is that it would create only negligible costs for employers in the state.

02:24 PM --
Robert Ferm, representing the National Council on Compensation Insurance (NCCI), testified in support of the bill. He stated that his organization projected the cost impact of the legislation during the stakeholder process and established that the bill would create a negligible cost impact on employers in the state. See Attachment A.

140422 AttachA.pdf140422 AttachA.pdf

02:26 PM --
Lori Fox, representing Pinnacol Assurance, testified neutrally on the bill. Ms. Fox stated that her organization was an active participant in the stakeholder process. She stated her organization's interest was striking a balance for employers and employees, and that the bill represents a workable solution.

02:28 PM --
Paul Tauriello, representing the Division of Workers' Compensation, CDLE, came to the table to respond to questions from the committee. Director Tauriello responded to previous questions from the committee. He explained how the referral process works and discussed Level II accredited physicians and the general statutory requirements around workers' compensation. Mr. Tauriello continued to respond to committee questions about Level II accredited physicians and their qualifications. He discussed the oversight responsibilities of his division versus other medical oversight authorities. He responded to a question about a Workers Compensation Research Institute (WCRI) study in 2005. Representative Exum shared an anecdote about his personal workers' compensation claim.

02:40 PM

Questions from the committee to Director Tauriello continued. Director Tauriello responded to a question about typical workers' compensation claims. He discussed the concept of maximum medical improvement (MMI) and DIME's role in moderating disputes. He responded to a question about how injured workers make educated decisions in choosing a doctor in this process.

02:53 PM --
Mark Butaud, representing the Association of Colorado State Patrol Professionals (ACSPP), testified in support of the bill. He stated that his organization was for the bill because it provides more options.

02:53 PM --
Scott Meiklejohn, representing the Workers' Compensation Education Association (WCEA), testified in support of the bill. He discussed his organization and described the bill's ability to engage the claimant in the workers' compensation claim process.

02:55 PM

Representative Williams offered closing remarks. She stated that this bill had gone through many incarnations, and discussed some of the original provisions of the bill. She discussed the role of her constituents had in the creation of this legislation. She said that the bill in its current form represents good team work, collaboration and policy for the state.

BILL:HB14-1383
TIME: 02:55:34 PM
MOVED:Williams
MOTION:Refer House Bill 14-1383 to the Committee of the Whole. The motion passed on a vote of 7-4.
SECONDED:Ryden
VOTE
Exum
Yes
Hamner
Yes
Holbert
No
Navarro
No
Nordberg
No
Rosenthal
Yes
Ryden
Yes
Szabo
No
Wright
Yes
Kraft-Tharp
Yes
Williams
Yes
Final YES: 7 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS




02:58 PM

The committee took a brief recess.