The National Corn Growers Assn. (NCGA) this week formally asked EPA to extend for an additional 30 days the agency's deadline on public comment on the wisdom of waiving the ethanol Renewable Fuel Standard (RFS) as requested by eight governors. Set to end September 26, the comment period should be extended, NCGA said, because 30 days is not enough time for a thorough analysis of the waiver requests, a waiver's impact on ethanol production or whether a waiver will even help in the wake of a drought-devastated crop, dwindling corn supplies and spiking prices. The group said farmers are consumed right now with harvest, and that it makes sense to actually know how much corn is harvested before deciding on the waiver request. EPA will likely grant the extension as the Obama White House does not want the RFS issue hitting the President on the campaign trail.

State Fund estimates immediate 5-7% decrease in rates

Near the end of the Legislative session the Legislature passed a comprehensive workers compensation reform package intended to remove inefficiencies, fraud, and some of the cottage industries within the system while providing injured workers increased benefits. State Fund has provided a letter stating they will recommend an immediate 5-7% reduction in insurance rates upon implementation. SB 863 (de Leon) is currently on the Governor's desk awaiting action, but is expected to be signed.   The savings to employers are conservatively estimated to be approximately $1 billion in 2013 and over $300 million annually each year thereafter.   

SB 863 passed the Assembly on a 66-4 vote and the Senate with a vote of 34-4.  The final opponents were the Applicant Attorneys and the specialty medical providers.  The association joined a coalition of business entities supporting the final package.

Generally, SB 863's provisions are intended to:

• Reduce frictional costs achieved through tighter claims management;
• Set reasonable, achievable time frames for claims resolution;
• Create an accountable lien process;
• Stem the flood of unnecessary "add-ons" to nearly every workers' comp claim for sexual dysfunction and sleep disorders as ways to drive up the permanent disability award;
• Provide better access to care for injured workers; and
• Establish some critically needed fee schedules, among other cost saving changes. 
• All of the changes in the bill are evidence-based and data-supported.  

As passed by the Legislature on August 30, 2012, SB 863's major provisions:

• Create a $120 million program designed to increase benefits for injured workers who suffer a disproportionate loss of earnings as the result of an industrial injury.  This will be designed for access by only the most catastrophically injured workers - such as those who are paralyzed or have suffered devastating injury that makes it impossible to return to their profession.
• Eliminate the 15% bump-up/bump-down that increases or decreases a permanent disability award based on whether an employer makes an offer to return injured worker to work within 60 days of injury becoming permanent and stationary.
• Authorize a $6,000 supplemental job displacement benefit that can be used for vocational rehabilitation and is made available when the injured worker is declared permanent and stationary and the treating physician determines there will be some degree of permanent disability.
• Prohibit add-ons for psychological conditions, sexual disorders and sleep dysfunction in permanent disability awards. 
• Require disputes over utilization review denials be resolved through an independent medical review (IMR) process. IMR would take the place of the existing requirement that an injured worker obtain a second opinion for spinal surgery.  This is expected to provide substantial savings in the long term for employers. 
• Provide that a report by a doctor outside of a medical provider network (MPN) may not be the sole basis of an award for compensation.
• Prohibit professional employer organizations and temporary staffing agencies from becoming self-insured.
• Prohibit a chiropractor from serving as the primary treating physician after 24 visits.
• Eliminate requirement that non-occupational providers make up at least 25% of a medical provider network (MPN).
• Require periodic audits of MPNs and authorize discretionary MPN audits.
• Provide that failure to post notice of an MPN is not a sufficient reason for an injured worker to treat outside of the network.
• Establish a $150 lien filing fee and a $100 activation fee for liens that have already been filed.
• Require the Official Medical Fee Schedule transition to Medicare's Resource-Based Relative Value Scale (RBRVS).
• Reduce reimbursement for outpatient surgery centers to 80% of the hospital rate.
• Add in new reporting requirement for public self insured entities.
• Strengthen financial stability requirements for self insured groups.

Phased in permanent disability benefit increase of $310 million in 2013 and $530 million in 2014.   

Business and agriculture groups are putting a full-court press on Congress to enact a trade deal with Russia by the end of the month, and groups told House and Senate leaders this week in a letter signed by the American Farm Bureau Federation (AFBF) that giving Russia permanent normal trade relations is a top priority. Russia was allowed to join the World Trade Organization (WTO) in August, but because of Cold War legislation that must be repealed, the U.S. will not benefit from Russia's WTO accession, the groups said. The so-called Jackson-Vanick legislation passed in the 1960s sanctioned nation's which interfered with Jewish emigration to Israel, was aimed at the former Soviet Union, and it's generally agreed this law should be repealed. However, congressional human rights champions believe Russia's history argues strong sanctions language on violations of international human rights standards be included in the trade bill before Congress acts.