FISCAL NOTE

Date Requested: February 02, 2016
Time Requested: 01:46 PM
Agency: Workers' Compenation
CBD Number: Version: Bill Number: Resolution Number:
1075 Introduced SB72
CBD Subject: Workers Compensation


FUND(S):

7162, 7163, 7164, 7165, 7173

Sources of Revenue:

Special Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


If enacted, the provisions of SB72 will have a significant adverse fiscal impact on all of the workers' compensation related funds that are administered by the Offices of the Insurance Commissioner. The funds impacted include the Old Fund, the Uninsured Fund, the Self-insured Guaranty Fund, the Self-insured Security Fund, and the State Entities Workers' Compensation Fund. Actuarially determined estimates of the magnitude of the adverse impacts are not available at this time, but the severity of the increased costs are believed to be significant. The deficit position of the Workers' Compensation Old Fund will be significantly increased and the revenues dedicated to reducing the debt will need to remain in place or be increased to cover the increased claims liabilities.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2016
Increase/Decrease
(use"-")
2017
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):






Memorandum


If enacted, Senate Bill 72 would expand the scope of workers' compensation benefits to include coverage of health care services, rehabilitation services, durable medical goods, supplies, and other medically related items that are causally related to the occupational injury. If enacted, SB72 would also amend the statute by providing that the treating physician's opinion regarding medical treatment of a compensable injury or disease will supersede authorized or approved guidelines. SB 72 also mandates that any diagnostic testing requested that is causally related to the injury shall be approved and further mandates that if any diagnostic testing or medical treatment has been denied and the claimant appeals and prevails, the claims administrator shall pay treble damages to the claimant for the delayed time based on the permanent partial disability rating. If enacted, the provisions of SB72 will have an adverse fiscal impact on all of the workers' compensation related funds that are administered by the Offices of the Insurance Commissioner. Actuarially determined estimates of the magnitude of the adverse impacts are not available at this time, but the severity of the increased costs are believed to be significant.



    Person submitting Fiscal Note: Melinda Kiss
    Email Address: Melinda.Kiss@wvinsurance.gov