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Council on Worker’s Compensation
May 14 , 2013
Mr. Beiriger, Ms.
Bloomingdale, Mr. Brand, Mr. Brandl, Mr. Buchen, Mr. Redman, Mr. Kent, Mr.
Metcalf, Ms. Nugent, Ms. Pehler, Mr. Schwanda, Mr. Collingwood and Ms. Thomas
Excused: Mr. Ginsburg
Staff present: Mr. Ezalarab, Mr. Krueger, Mr.
Moreth and Mr. O’Malley
- Call to Order/Introductions:
Mr. Metcalf convened the
Worker’s Compensation Advisory Council (WCAC) meeting at approximately 10:05
a.m. in accordance with Wisconsin’s
open meetings law. WCAC members,
staff and members of the audience introduced themselves.
- Approval of Minutes:
Mr. Beiriger mentioned the
draft minutes of the April 9, 2013 meeting should be corrected to accurately
reflect the comments by Ms. Lynn Steffes from the Wisconsin Physical Therapy
Association. The corrections appear on a sheet submitted by Ms. Steffes
included with the agenda. Mr. O’Malley pointed out an error on page 4 in the
first paragraph in the next to last sentence of the draft minutes in the
section containing comments by Ms. Connie Kinsella from the UW Hospital and
Medical Foundation about the time it takes to receive payments from
Medicare. The minutes should correctly reflect that this is14 days rather
than 4 days. Mr. Moreth suggested
another correction to the draft minutes on page 6 for the second proposal
from the Self-Insurer’s Advisory Council. The second proposal was to amend DWD 80.60 (4) (d) 7 to clarify that
excess insurance may be required by the Department rather than being
mandatory. Mr. Beiriger moved to
approve the minutes of the April 9, 2013 meeting with these corrections. Mr. Kent seconded the motion. The minutes as corrected were unanimously
Mr. O’Malley reviewed the
correspondence received by the WCAC since the last meeting.
A letter was received from Ms. Susan Summerfield, President of the Wisconsin
Health Information Management Association, dated March 29, 2013. Ms. Summerfield recommended amending Chapters DWD 80 and 81 of the
Wisconsin Administrative Code to delete reference to ICD-9-CM codes which
will no longer be valid because of the implementation of the ICD-10 medical
coding system which will become effective in October, 2014.
An e-mail message was received from
Sharon Belton, Senior Public Policy Analyst with the Worker’s Compensation
Research Institute (WCRI), on May 9, 2013. Ms. Belton or other staff from the WCRI offered to appear at the next
WCAC meeting on June 11, 2013 to assist with the current discussion on
issues about medical cost containment initiatives and provide insights and
lessons from other states about trends in medical costs, prices for health
care services and implications of a fee schedule.
- Database Audit Committee:
Mr. Krueger advised that
Janet Jamieson will appear at the June 11, 2013 meeting and provide a
report about the audit of the certified databases.
- Permanent Total Disability Study Committee: Mr. O’Malley updated
the progress of the Permanent Total Disability Committee. The last meeting
of the committee was held in November, 2012.The Department reviewed cases
claiming compensation for permanent and total disability from October 1,
2012 through March 31, 2013. The Department will monitor the outcome of
these cases. The
Department received 273 cases claiming compensation for permanent total
disability during this six month period.
To date twenty of these cases were resolved by compromise agreements. The
Department will continue to follow the cases to determine if they are
resolved by litigation, compromise agreements or finding of fact orders.
Work Injury Supplemental Benefit Fund:
Mr. Krueger provided
financial information on the WISBF and reviewed the revenue, expenditures
and cash balance of the Fund through May 14, 2013. Mr. Krueger stated the encumbrance of known claims on the Fund is at
or above 85% of the cash balance and the cash balance plus accounts
receivable. The last page of the
handout specifies the action that is required under the law, s. 102.65 (4)
(b), Stats. The DWD Secretary is
required to file a certificate with the Secretary of the Department of
Administration that specifies one of the following:
1)Payment of claims from the WISBF
will be made as provided in a schedule the Department shall promulgate by
2) A date after which payment of those claims will be reduced or
3) A date after which no new claims under those provisions will be paid.
Mr. Krueger informed the WCAC the WISBF has not paid any reimbursements for
supplemental benefits for 2012.Mr.
Krueger stated there was enough money in the WISBF to make other benefit
payments, but there was not enough money in WISBF to reimburse worker’s
compensation insurance carriers and self-insured employers for supplemental
The WCAC discussed the options available for the WISBF.
There was a motion made by Mr.
Beiriger, seconded by Ms. Bloomingdale to adjourn to closed caucus. The motion carried unanimously and the WCAC went in to closed caucus
at approximately 10:25a.m.
The WCAC reconvened in open session at approximately 2:50p.m
Mr. Kent inquired if the Management members would
like to have a member of the
staff present at the next meeting to discuss the medical fee system,
reimbursement of health care providers under their system and how this is
set up internally. Mr. Kent
stated that information from the Minnesota
staff person may help the WCAC learn about the
system and reach a consensus that everyone could agree upon.
Mr. Beiriger mentioned there were three issues that should be addressed
quickly. These issues are to make
sure the WISBF is solvent, the Department’s proposal for the future solvency
of the Uninsured Employer’s Fund and to extend the sunset provision in s.
102.43 (5), Stats., for two additional years.
Mr. Beiriger stated there was a need to study the effect of s. 102.43
(5), Stats., for another two years before considering making this a
permanent part of the law.
Mr. Beiriger stated the Management members agreed to suspend payments to
insurance carriers and self-insured employers for supplemental benefit
reimbursements. This option would not require a permanent change in the law. By January 1, 2014, there should be a statutory change to cover the
solvency of the WISBF. Mr. Beiriger
requested continuing reports on the status of WISBF at least each six
Mr. Beiriger mentioned the third point about how to deal with the future
solvency of the Uninsured Employer’s Fund rather than using reinsurance. The Management members are supportive of the action to use
assessments proposed by the Department to fund the Uninsured Employer’s
There was a motion by Mr. Beiriger, seconded by Ms. Bloomingdale to:
1) Extend the sunset provision in s.102.43 (5) (c), Stats., for an
additional two years.
2) Support the suspension of payments to reimburse supplemental benefits
paid pursuant to s.102.44 (1) (c), Stats., and
3) The Uninsured Employer’s Fund will pay claims in excess of one million
dollars and will be reimbursed for payments for each claim in excess of one
million dollars for each claim not covered by a reinsurance or excess
insurance policy. Payments by
insurers and self-insurers would be capped at $500,000 per calendar year and
collected with the annual assessment made by the Department.
The Department will have the provisions approved in the motion drafted. It
is not known if the drafter will have adequate time to complete drafting
these provisions by the next meeting considering that the bi-annual budget
has not been finalized by the Legislature.
The motion carried unanimously.
July 9th, 2013 was identified as the tentative date for a WCAC
meeting in July.
Motion by Mr. Beiriger, second by Mr.
to adjourn. The motion carried
unanimously and the meeting was adjourned at approximately 3:10 p.m.
June 11th, 2013