FISCAL NOTE
Date Requested: January 31, 2023
Time Requested: 04:30 PM |
| Agency: |
Workers' Compensation |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2827 |
Introduced |
SB525 |
|
|---|
| CBD Subject: |
Actions, Suits and Liens |
|---|
|
FUND(S):
7162, 7163, 7164, 7165
Sources of Revenue:
Special Fund
Legislation creates:
Creates New Expense, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
If enacted, Senate Bill 525 would increase expenses for occupational pneumoconiosis (OP) benefits paid in the Worker's Compensation Old Fund, the Self-insured Security Fund, Self-insured Guaranty Fund and the Uninsured Employer's Fund by granting 5% (20 weeks) presumptive award of indemnity benefits for claimants with occupational pneumoconiosis but with no measurable pulmonary impairment and would further grant a 25% permanent partial disability award to claimants who have been diagnosed with pulmonary massive fibrosis or complicated pneumoconiosis with no measurable impairment.
The Offices of the Insurance Commissioner does not have sufficient data to prepare a reliable estimate of the additional costs of the increased OP benefit awards that would be granted under Senate Bill 525 at this time.
Please see the memorandum section of this fiscal note for additional information.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2023
Increase/Decrease
(use"-") |
2024
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
Memorandum
Senate Bill 525, if enacted, would grant twenty weeks (or 5% permanent partial disability) awards of worker's compensation benefits to claimants with no measurable pulmonary impairment from occupational pneumoconiosis (OP). Additionally, claimants with an x-ray diagnosis of pulmonary massive fibrosis or complicated pneumoconiosis without measurable impairment would be granted a 25% permanent partial disability award.
The data necessary to estimate the increased liabilities that will result from the additional benefits granted under Senate Bill is not available at this time. However, the additional benefits are likely to significantly increase the expenses and increase the deficit for the Worker's Compensation Old Fund and create adverse claims development in the other funds administered by the OIC with exposure to OP claims.
The increased benefits are likely to raise private insurance carrier worker's compensation insurance premium rates for employers in industries where exposure to OP exists. Senate Bill 525 is also likely to significantly increase the worker's compensation expense for self-insured employers in the coal industry.
As drafted, Senate Bill 525 appears to be retroactive and would effectively restore the presumptive 5% OP award for both past (July 1, 2003 forward) and future OP claims. Additionally, it is unclear if the 5% presumptive award is to be granted in addition to the 25% award for those diagnosed with pulmonary massive fibrosis or complicated pneumoconiosis, or if those two awards are mutually exclusive.
Person submitting Fiscal Note: Melinda Kiss
Email Address: Melinda.A.Kiss@wv.gov