National Edition Banner March 2010
Vol 1, Issue 8

Find Solutions & Strategies                                 May 17, 2010

Prescription Drugs and Workers' Comp

CMS Clarifies Guidance on Prescription Drugs and Medicare Workers' Comp Set-Aside Agreements
In This Issue
-FEATURED ARTICLE: CMS memo on prescription drugs
-LARSON'S SPOTLIGHT: gun possession & termination, average weekly wage, intoxication, lump sum, employee status
-BLOG ROUND UP: fraud, longshore update, intoxication
-NATIONAL NEWS
-STATE NEWS
-WHAT'S NEW IN LARSON'S: witness costs
-LARSON 50% OFF SALE
A Note From the Editor
Robin Kobayashi
Dear WC Professionals:
 
The big story out of Texas last week involved two government employees who say they were terminated for blowing the whistle on physician fraud in the comp system. Read it here.
 

Sincerely,
Robin E. Kobayashi, J.D.

LexisNexis Editorial & Content Development
Quick Links

Top 25 Blogs for 2009

Videocast of the Week

What is the difference between the MMSEA and a Medicare set aside?   

Sylvius Medicare Videocast 

Hear the answer from Sylvius von Saucken, Chief Compliance Officer with The Garretson Firm Resolution Group Inc. View it

Web Poll Final Results
Should a worker who uses medical marijuana at home be fired by his employer for testing positive for drugs?
  • Yes - 27%
  • Depends on nature of work - 36%
  • No - 36%
Workers' Comp Profile
Richard KissiahRichard C. Kissiah, the Managing Partner of Kissiah & Lay in Alpharetta, GA, practices almost exclusively in the field of workers' compensation law, and is a past chairman of the Atlanta Bar Association's Workers' Compensation Section, a member of the board of directors for the Atlanta Medical Association's Medical-Legal Committee, and the author of Kissiah's Georgia Workers' Compensation Law (LexisNexis Matthew Bender).
featured article: PRESCRIPTION DRUGS

CMS Clarifies Guidance on Prescription Drugs and Medicare Workers' Comp Set-Aside Agreements. The Centers for Medicare & Medicaid Services issued a new memorandum dated May 14, 2010, to clarify guidance in CMS's April 3, 2009 and July 1, 2009 procedure memoranda regarding prescription drugs administered to Medicare beneficiaries for off-lable and/or unlabeled outpatient uses and whether these drugs are considered covered by Medicare Part D and, therefore, appropriately included in a Medicare Workers' Compensation Set-aside Agreement (WCMSA) proposal. The May 14, 2010 memorandum also changes the Rated Age (RA) language to be included in WCMSAs, as detailed in the August 25, 2008 procedure memorandum. Read the memo

Larson's spotlight: 5 recent cases you should know about

Tom Robinson thumbnailLarson's Spotlight reports noteworthy workers' comp cases each week. This list was compiled by Thomas A. Robinson, a staff writer for Larson's Workers' Compensation Law, the nation's leading authority on workers' compensation law. 

 
#1  AL: Worker's Termination Tied to Gun Possession, Not Workers' Comp Claim
 
#2  SC: Free Housing Included in Computation of Average Weekly Wage
 
#3   KS: Level of Marijuana Metabolites in Worker's Bloodstream Triggers Intoxication Presumption
 
#4  CO: 2007 Amendment Increasing Maximum Lump  Sum Payments to Injured Workers Allows  Worker with 1990 Claim to Recover Additional Benefits
 
#5  MS: Injured Trucker Was Employee, Not Independent Contractor
blog round up

Fraud SignWorkers' Comp Fraud Blotter - Recent Arrests, Charges, Convictions, Investigations 5/13/2010. Read it   

 
Rebecca ShaferEmployers Win. Fraud Loses.  A podcast submitted by Rebecca A. Shafer. Hear it 
 
 
 
BRBS logoLongshore Update from the Benefits Review Board, by Janice Ulan, Associate General Counsel, Longshore, Benefits Review Board. Read it
 
Tom Robinson thumbnailWorker's Pot Smoking Prior to Feeding Grizzly Bears Does Not Defeat Montana Comp Claim, by Thomas A. Robinson. Read it
national news
> Crawford & Company Announces 1Q 2010 Results
> MSHA Announces Series of Public Meetings to Bolster Transparency in Investigation of Upper Big Branch Mine Explosion
> National Workers' Compensation Defense Network Announces Free Semi-Annual Seminar In Los Angeles
> 40% of All Workplace Fatalities Are Transportation Related
> Controversial Franchisee Misclassification Case Set for Trial in U.S. District Court
> Test Case for Genetic Discrimination in the Workplace Filed With EEOC
> NIOSH Reports on Occupational Injuries and Fatalities Due to Falls
> MEMIC President and CEO Elected 2010 NCCI Board Chair
> Senate Subcommittee Hears Testimony on Healthcare Worker Injuries
> Zurich Adds Karen Rose to Underwriting Staff in Los Angeles Office
> John Schapperle of Island Insurance Elected to NCCI Board of Directors
> NIOSH Publishes Report on Catastrophic Incidents in Manufacturing
> A.M. Best Affirms Ratings for Zenith and Its Subsidiaries
> Health Care Reform: Eight Strategies for Employers
> NIOSH Posts Health Disparities in Manufacturing
> US DoL Unveils Tool to Help Employees Understand Foreign Worker Certification
> Review of OSHA's Methylene Chloride Standard Shows Value to Worker Protection
state NEWS
> AZ: Governor Signs Bill to Privatize SCF Arizona by 2013
> CA: CWCI Reports on Medical Network Provider Use in California
> CA: Senate Passes Extension on CIGA's Authority to Issue Revenue Bonds for Workers' Comp Claims
> CA: DWC Releases Latest Study on Access to Medical Care in California's Workers' Comp System
> CA: Senate Committee Chair Demands DWC Provide Timeline for New Permanent Disability Rating Schedule
> CA: DWC Issues Third Notice of Revisions to Medical Provider Network, Employee Information Rules
> CO: Senate Rejects Changes to Pinnacol Assurance Board
> CO: R. Mack Babcock Added to Super Lawyers' Rising Stars List and Directory
> CO: Two Workers' Comp Bills Sent to Governor
> CO: Pinnacol Assurance Adds Business Ethics and Conflict of Interest Policies
> CO: Gov. Thanks Vilsack for Approving Mine Expansion Project
> CO: Five Workers' Comp Bills Sent to Governor
> CT: AIA Applauds Defeat of Bill to Create State Fund
> FL: WC Rates Will Decrease July 1, 2010
> FL: DWC Reduces Special Disability Trust Fund Assessment Rate
> LA: LWCC President & CEO Kristin W. Wall Elected to NCCI Board of Directors
> MA: Massachusetts Businesses to Save $75 Million in Proposed Workers' Comp Rates Under Deal
> NV: Insurance Commissioner Scott J. Kipper Resigns
> NJ: Assembly Committee Passes Captive and Reinsurance Bills
> NJ: State Plans Centennial Celebration of Workers' Compensation
> NY: "Skip" Anderson Sentenced to Probation for Wrongfully Engaging in Business With Oriska
> NY: Comptroller Stops $5.5M Payment From Uninsured Employers' Fund That Should Have Been $92
> NY: Farmworker Fair Labor Practices Act Reintroduced in State Senate
> NY: Federal Judge Issues Temporary Restraining Order on Governor's Furlough Plan
> NY: Businesses Opt to Settle With State After Dissolution of Troubled Self-Insurance Trusts
> NY: WCB Posts New Reimbursement Rates for Inpatient Hospital Care
> NC: NCRB Updates Guide for Submitting Policy Data Electronically
> OH: Strickland Administration Plans Raid of Black Lung Fund
> OH: Mark L. Newman Joins Barron, Peck, Bennie & Schlemmer as a Partner
> OK: Insurance Commissioner Takes Control of Imperial Casualty and Indemnity Co.
> OR: DCBS Adopts Rules for Workers' Comp Insurance in Large-Risk Plans
> TN: House and Senate Speakers Signs Bill 2928
> TX: Payment Per Claim for Drugs Prescribed to Injured Workers Nearly 30 Percent Higher Than Study Median
> TX: Workers' Comp Whistleblowers Say TDI Failed to Sanction Unscrupulous Doctors
> TX: Harris County Jury Awards $1.55M to Worker Injured at Maritime Terminal
> WV: BrickStreet to Increase Premiums for State Agencies, Boards of Education, Others
> WI: Gov. Signs Legislation to Protect Public Service Workers
 
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Witness Fees; Other Costs; Interest.  Chapter 134, which discusses the general rule that witness fees and other expenses incurred in connection with a compensation hearing must ordinarily be borne by the party incurring them, has been updated.  By express statute in a number of jurisdictions, allowance is made for recovery of some fees and expenses if the injured employee is "successful."  How much "success" is required is subject to some interpretation.   

For example, in a recent case from Ohio, Azbell v. The Newark Group, Inc., 2008 Ohio 2639; 2008 Ohio App. LEXIS 2233 (May 27, 2008), the appellate court held it was error to deny reimbursement for claimant's expert witness's fees because, while claimant did not succeed on all claims, the expert supported all claims, and it was difficult, if not impossible, to apportion the fees and costs between the successful and non-successful ones [see Ch. 134, § 134.02 n.1].  Practitioners should be aware that on appeal, costs can usually be assessed against the losing party under general costs statutes and that some states also allow the claimant to collect interest on unpaid benefits.

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