Industry Update:
Pennsylvania - HB1141, Introduced 2/2/2016
Amendments for Workers' Compensation Act
Coventry has been in active discussion regarding this bill and it has been noted that the bill does not have sufficient support to move forward, we will continue monitoring and working with our resources and will advise if anything changes on this Bill.
Tennessee - H1720, Introduced 1/14/2016
Penalty Relative to Workers' Compensation Silent
Preferred Provider Organization (PPO)
HB1720 had significant amendments that Coventry was involved in negotiating. These changes resulted in the following provisions:
1) Allows a complaint to be filed with the Department of Labor against a licensee of Tennessee Department of Commerce and Insurance (TDCI) for violation of existing statute 50-6-215
2) Allows the Department of Labor to investigate the complaint
3) Gives the Department of Labor disciplinary authority over individuals or entities not licensed by TDCI, if they violate 50-6-215
Although the Department of labor can investigate complaints, it cannot take action on them, but merely forward to TDCI for action. Complaints can still also be filed with the TDCI.
These changes remove all concerns regarding the Silent PPO's considerations as well as fines and penalties.
Workers' Compensation Commission Oklahoma Opt-Out Statute Unconstitutional On February 26, 2016 Sections 203 and 209 of the Oklahoma Employees Injury Act were declared unconstitutional by the Oklahoma Workers' Compensation Commission (WCC). The decision comes following proceedings for Jonnie Yvonee Vasquez v. Dillard's Department Store Inc. The decision identified that the law treats Oklahoma workers differently, it denies due process and equal protection of the laws for all Oklahoma Injured workers, and that these sections of the Opt Out law deny access to justice as guaranteed by the Oklahoma Constitution.
The WCC ordered that the Vasquez case be "referred" to a WCC Administrative Law Judge for a hearing on the merits applying the provisions of the Administrative Workers' Compensation Act instead of the Injury Benefit Act, but staying its referral pending any appeal that might be lodged. Because this decision was made by the WCC and was a constitutional decision, we expect that their will be much more debated and discussed on this decision.
Many Jurisdictions have been discussing Opt out as a consideration in their state, we expect that this latest decision will prompt additional conversations to determine next steps; continued investigation into an Opt out program or taking more of a wait and see approach monitoring the Oklahoma situation.
Coventry will be in attendance at this week's Oklahoma Workers' Compensation Advisory Council meeting and the Commission hearing immediately following the Advisory council meetings (March 3rd and 4th respectively). We will continue to closely monitor and relay activity in Oklahoma as more becomes known relating to the decision.
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