The
economic development bill that was recently passed by the Vermont Legislature
contains a number of provisions that will change certain aspects of workers’
compensation claims administration. A summary of those changes is located at: http://vtcompbulletin.blogspot.com/2014/05/new-laws-place-limits-on-ime-increase.html.
However,
there are other changes as well. They include: Reimbursement to the
employer/carrier from the claimant’s third party recovery; Recoverable costs at
hearing or trial; Investigation of Fraud; Employee access to workplace safety
records; and The Commissioner must adopt rules for prescription of opiods and
for promoting cost effective, early, return to work programs. Assuming the Governor signs the legislation, these changes will be effective July 1, 2014.
Reimbursement
from Third Party Recovery:
The
legislature has changed the way an employer and workers’ compensation insurance
carrier is reimbursed for benefits paid under the Workers’ Compensation
Act. If, after deducting expenses of
recovery, the recovery is less than the full value of the claim, the
reimbursement to the employer shall be limited to that portion of the recovery
allocated for damages covered by the Act.
If the Court has not allocated the recovery or the parties have not
agreed to an allocation, then either party may request that the Commissioner
make an administrative decision as to the allocation. When a request is made,
mediation shall be ordered and, if unsuccessful, the Commissioner may make a
determination or order arbitration on the matter. See 21 VSA §624(e).
Recoverable
Costs:
The
legislature has now included deposition fees, subpoena fees and expert witness
fees as recoverable costs for prevailing claimants. See 21 VSA §678(a).
Investigation of
Fraud:
The
statute contains a provision requiring that any claim of fraud first be
investigated by the employer, or carrier and shall then be submitted in a
written report to the Department. Once
received by the Department the worker shall have 30 days to respond in person
or in writing. The Department shall
issue a determination on the allegation to which any party may appeal. See 21 VSA §663b(a). An employee found to have committed fraud in order to receive
workers’ compensation shall be ordered to repay the compensation fraudulently
received in addition to any other penalties.
See 21 VSA §663b(b). The Department has been mandated to study and
report by January 2015 on the best practices to detect and deter workers’
compensation fraud.
Employee and
Commissioner Access to Workplace Safety Records:
It has been mandated that an employer shall post a notice advising employees of where they may review the employer’s record of workplace safety in accordance with rules to be adopted by the Commissioner. These records shall be reviewable by the employees and the Commissioner but shall not otherwise be publicly available. See 21 VSA §691a.
Rules for
Prescribing Opiods:
The
Legislature, intending to protect employees from the dangers of prescription
drug abuse, and the Commissioner, in consultation with other state departments,
agencies and boards, has been charged with adopting rules consistent with best
practices for prescribing opiods to employees who have suffered work related
injuries. The rules will include patient screening, drug screening and claims
adjudication. See 21 VSA §640c(a)(b).
Rules for Cost
Effective, Early, Return to Work Programs:
In
an attempt to return an injured employee to work as soon as possible within any
limitations, the Commissioner shall adopt rules promoting the implementation
and development of cost effective, early, return to work programs. See 21
VSA §641.
