January started off with numerous changes to state?s workers? compensation systems ? both large and small ? in addition to the annual standard periodic updates to rates.? Here are just a few of the observations on some of the changes announced with a January 1, 2013 effective date:
Travel Expense Reimbursement
A number of states have mirrored the mileage rate increase given to state or federal employees, increasing the rate reimbursed from 55.5 cents per mile to 56.5 cents per mile (see: MD, AL, NE, NV, CA).?? This amounts to about a 2% increase over the prior year.? Colorado has increased the rate from 47 cents per mile to 52 cents per mile, an increase of about 10%.? Expect the remaining states to announce increases to their reimbursement rates accordingly over the coming year.
Cost of Living and Average Weekly Wage
Maximum benefit and average weekly wage rates continue to rise slowly.? Per the U.S. Department of Labor Division of Longshore and Harbor Workers? Compensation, the national average weekly wage rate, published annually in October, increased 2.31% for the period of 1/1/2012 through 9/30/2013 and 3.05% in the year prior to that.? States that have announced 2013 rates have shown roughly around that same neighborhood of increase:
??Arizona ? average monthly wage increased from $4,062.29 to $4,185.78 (3.04%)
??New Mexico ? average weekly wage increased from $733.16 to $745.98 (1.74%)
??New Jersey ? maximum benefit increased from $810 to $826 (1.98%)
??North Carolina ? maximum weekly benefit increased from $862 to $884 (2.5%)
??Colorado ? conversion factors increased by 1.5%
??Maryland ? average weekly wage increased from $965 to $990 (2.6%) and COLA increased 3.2%
??Hawaii ? maximum benefit increase from $747 to $762 (2.01%)
??Florida ? maximum weekly compensation rate increased from $803 to $816 (1.62%)
Though looking at these states isn?t a guarantee that other states will follow suit, it would seem that an increase of between of 1.5% and 2.5% should be expected for the remaining states over the course of this coming year.
Claims Fraud Warning
This change was not specific to just Workers? Compensation claim forms, but it does impact them.? Maryland amended its required wording for applications and claim forms, changing the intent required to be guilty of a crime.? The language in the warning was amended from ?knowingly AND willfully presents a false or fraudulent claim?? to ?knowingly OR willfully presents a false or fraudulent claim?? (emphasis added.)
?And Then There?s California
With an effective date of January 1, 2013, California introduced a number of significant changes to their Workers? Compensation system.?? Here are just a few of the highlights:
??Supplemental Job Displacement Benefit ? the prior sliding scale that ranged from $4,000 to $10,000 depending on the permanent disability rating, has been replaced with a $6,000 limit that is offered when the worker reaches permanent and stationary status doctor reporting is completed
??A ?Return to Work Fund? has been created to assist injured workers
??Minimum and maximum weekly disability benefits will be increased over the next 2 years
??The current disability rating modifier, which included a value between 1.1 and 1.4 will be replaced with a factor of 1.4 but will not include any future earning capacity modifies going forward
??An independent medical review is introduced for handling medical disputes regarding medical treatment
??An independent bill review process is also introduced for disputes regarding what is to be paid doctors
??Medical Provider Network requirements have been overhauled to improve the efficiency of the network and availability of doctors within the network.? Disputes regarding the use of MPNs will now be resolved as they arise
??Fee schedules for copy services, home health care, vocational experts and interpreters are to be created
Again, these are just highlights of the changes that have and are occurring in California.? Doubtless, countless pages would be needed to identify and discuss all of the changes the state has introduced.? Though 2012 may not necessarily have seen huge changes to individual states workers? compensation systems, California has started 2013 with a huge bang.
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Editor?s Recommendation:? Keep current with all your Workers? Compensation issues using NILS INsource and AuthenticWeb for Claims.
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