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State of the States March 4, 2022

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Amtrust Article discusses how the labor shortage impacts workers’ compensation

NationalAmtrust Vice President Matt Zender published a piece in NUPropertyCasualty360.com this week regarding how the labor shortage impacts workers’ compensation. Baby boomers retiring, lack of affordable childcare options and workers not returning to work due to burnout are significant factors affecting the economy. The baby boomers are the second-largest generation, following just behind millennials. With their continual departure from the workforce, employers are likely to find difficulty with employee retention and recruitment. Zender suggests that overworking employees to fill employment gaps and bringing in fresh workers with little experience will likely increase injury rates. He also notes that burnout of employees will probably see more resignations than increased production. It is possible that in attempts to meet market demands, safety protocols could be ignored and lead to higher injury rates. Overall, Zender recommends businesses integrate technology, reward current workers, and offer incentives to well-qualified new hires to generate business and promote worker safety. 

 

Two doctors convicted for operating pill mill schemes will receive their appeal in the Supreme Court

National

While both physicians are likely to stay imprisoned on their 20+ year sentences, the cases will likely force the court to address where the “good faith” defense comes into play for medical professionals and when opioid prescribing fits “a legitimate medical purpose.” There is a growing concern in the medical field that prescribers are not following valid clinical protocols and becoming hesitant to issue their best medical opinion in fear of prosecution. While the CDC recommends opioids to be more of a last resort for pain management, it is necessary for specialized circumstances, according to the New England Journal of Medicine, especially for chronic pain management. Despite prescriptions being down, opioid deaths are increasing. The New England Journal of Medicine attributes part of this to abruptly halting opioid medications for those on an existing regiment, leading to more hospital visits and even suicides. There is a worry that without further clarification from the court, physicians may deviate from a patient's best medical interest and risk a patient’s recovery process through little fault of their own. 


Colorado Division of Workers’ Compensation announced changes to fee schedule

COApp-based interventions are now covered under the workers’ compensation fee schedule. The CO Division of Workers’ Compensation says that apps accessed from cell phones or computers utilized towards patient education and treatment for a work-related injury will be eligible for reimbursement. For now, the Division recommends that providers order just one app-based intervention technology until the effectiveness of the apps can be more appropriately evaluated. Prior authorization will be required for apps costing more than $25 per month. There is no specific time limit for use; however, each app order is limited to three months then must be renewed. 

 

Florida’s SB312 passed both chambers

FLSB312 passed both chambers in February, making its way to the Governor’s office. The bill would bar telehealth providers from prescribing a Schedule II substance unless they are in hospice, a hospital, or a nursing home or require it for a psychiatric condition. According to the state of FL, facsimile and email messages are not included under the definition of telehealth. The bill would take effect in July of this year if signed into law. 

 

Georgia legislators reviving bill that would provide PTSD/mental health benefits to first responders

GAThe State Senate is reviving a bill that would cover PTSD/mental health workers’ compensation claims for first responders after the House did not address their version of the bill. SB484 could receive a hearing from the Insurance Committee in the coming weeks. Unlike other PTSD/mental health bills, SB484 would require a physical injury to accompany a mental injury in order to be considered a compensable injury. The Chairman of the Senate Insurance Committee, Senator Dean Burke, says the legislative proposal to protect first responders is something he “thinks is a serious issue that needs to be dealt with and it needs to be done sooner rather than later.” 

  

Pennsylvania’s Worker Misclassification Task Force released its annual report

PAThe state’s Worker Misclassification Task Force released its annual report with several recommendations for the General Assembly to consider. It is approximated that 49,266 employers in PA currently misclassify at least one employee, with 389,000 workers misclassified annually. Task Force estimates suggest that 11,670 misclassified workers suffering injury or illness were wrongfully denied workers’ compensation, a collective loss of 176 million in medical coverage and income replacement. Recommendations to ensure misclassification does not occur include:

  • Extending Act 72 beyond the construction trades to cover other industries in the states.
  • Formally adopt the ABC test as a baseline for the state to delineate between employee and independent contractor. 
  • Enhance penalties on those who misclassify workers. 
  • Allow for state agencies to access each other’s records. 

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