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  2. Worker's Compensation
  3. Worker's Compensation Advisory Council

Worker's Compensation Advisory Council Meeting Minutes

Madison, Wisconsin

December 13, 2016

Members present: Ms. Bloomingdale, Mr. Buchen, Mr. Dernbach(Chair), Mr. Fugina, Mr. Gunderson, Mr. Reader, Mr. Redman, Mr. Schwanda, Ms. Seiler, and Mr. Tindall

Member Excused: Ms. Nugent and Ms. Thomas

Staff present: Mr. Aiello,Mr. Krueger, Ms. McCormick, Mr. Moreth, and Mr. O'Malley

  1. Call to Order/Introductions: Mr. Dernbach convened the Worker's Compensation Advisory Council (WCAC) meeting at approximately 10:00 a.m. in accordance with Wisconsin's open meetings law. Mr. Dernbach called the roll of the members who appeared by telephone. Worker's Compensation Division staff and members of the audience introduced themselves.

    2. Mr. Dernbach introduced the four (4) new members of the Council who were appointed since the last meeting. Mr. Chris Reader, Director of Health and Human Resource Policy, with Wisconsin Manufacturers and Commerce and is member representing management. Mr. John Tindall, Director of Client Claim Advocacy, is with Integrated Risk Solutions and is a member representing management. Mr. Eric Fugina, Senior Claims Technical Specialist, has been with Sentry Insurance for 25 years and is a member representing worker's compensation insurers. Mr. Kevin Gunderson, WC Claims Manager, has been with Liberty Mutual Insurance Company for over 18 years and is a member representing worker's compensation insurers.

  2. Approval of minutes: A motion was made by Ms. Bloomingdale to approve the minutes of the March 8, 2016 meeting. Mr. Reader seconded the motion. The minutes were unanimously approved without correction.
  3. Correspondence: Mr. O'Malley reviewed the correspondence received since the last meeting.

    4. A letter dated October 27, 2016 was received from Ms. Mary Vogel, Office Manager, Walsdorf Roofing Company, Inc. In her letter Ms. Vogel discusses concerns about several unmeritorious worker's compensation claims involving employees of the company and also mentions concerns about the company's insurance agent not denying claims even when the employer wanted to contest a claim.

    A letter dated November 23, 2016 was received from Mr. Steve Schneider from the American Insurance Association, Mr. Mark Johnson from the National Association of Mutual Insurance Companies, Mr. Jeff Junkas from the Property Casualty Insurers Association of America, and Mr. Andy Franken from the Wisconsin Insurance Alliance. In the letter they express support for the Worker's Compensation Advisory Council and the Agreed Upon Bill process. In the letter they also strongly recommend the Council to adopt a medical provider fee schedule based on Medicare's resource based relative value system (RBRVS) with a uniform conversion factor applicable to all covered services with no special carve-outs.

    Mr. Kent suggested that the Council send a letter to Mr. Jeff Beiriger and Mr. Jeff Brand to recognize the importance of their service as long serving members on the Council representing management. Mr. Buchen and Ms. Bloomindale also suggested providing plaques. It was the consensus of the Council that letters and plaques would be presented to Mr. Beiriger and Mr. Brand for their many hours of work and long service to the Council over the years. Mr. Dernbach stated letters thanking the former members for their service and plaques will be available at the next meeting.

  4. Governor Walker's Opioid Abuse Task Force: Mr. Dernbach discussed Executive Order No. 214 that created the Opioid Task Force. A copy of the order was distributed at the meeting. The mission of the Opioid Task Force is to advise and assist Governor Walker in the effort to combat the opioid crisis in Wisconsin. The Department of Workforce Development (DWD) was required to develop a steering committee and Mr. Dernbach is a member. The steering committee developed two (2) goals; (1) DWD will work with the Council to identify any policy changes for reducing opioid and prescription overuse, and (2) Continue to consult with the Health Care Provider Advisory Committee to keep administrative rules covering the use of opioids and narcotics for treatment of injured employees updated.Mr. Dernbach requested the Council to keep Executive Order No. 214 in mind during negotiations for the Agreed Upon Bill.
  5. Comment on Proposed Budget Reduction: Attorney Charles Domer appeared at the meeting on behalf of the Wisconsin Association of Justice, Wisconsin Association of Worker's Compensation Attorneys and Wisconsin Defense Counsel to discuss the proposed budget reduction by the Division of Hearings and Appeals to eliminate the stenographic court reporter positions. Attorney Domer exclusively represents injured employees.Mr. Dernbach provided background about the budget reductions and informed the Council that 2015 Wis. Act 207 required each state agency, including DWD and DOA, to submit three (3) budgets to the Department of Administration (DOA) for the Governor to consider. These 3 requests are the normal budget with additional requests by the agency, a budget with just the normal costs for the agency to continue and a budget with a 5% reduction. Attorney Domer stated that most if not all stakeholders are opposed to the elimination of the court reporters and this proposal should go through the Council for approval. Court reporters are now statutorily required, are necessary for the efficient functioning of worker's compensation trials, and are able to prepare accurate, precise, impartial transcripts of what occurred. Court reporters ensure decorum in the courtroom, correctly mark exhibits, in the most hotly contested cases get down all the words of the witnesses and the objections of the parties. It will cost the parties additional money to bring in private court reporters and there could be disputes about the accuracy of the transcripts if the stenographic court reporter positions are eliminated.
  6. Public Meeting & Open Records Law Review: Mr. Karl Dahlen, DWD Chief Legal Counsel, gave a presentation about the Wisconsin Public Meetings and Open Records Laws and how these laws applied to the members of the Council. These laws apply to governmental agencies including the Council. Mr. Dahlen discussed the administration's efforts to improve open government and Executive Order No. 189 for establishing procedures for requesting public records. Section 19.31, Wis. Stats., and the following sections cover the public records law in this state and basically provide that public records are broadly defined and include tangible documents and recordings. Mr. Dahlen provided a three (3) page handout to the Council that listed relevant statutory references and additional resources the Attorney General's Office can provide for governmental units.
  7. Labor and Industry Review Commission (LIRC): Commissioner Laurie McCallum spoke to the Council on the role and responsibilities of the Labor and Industry Review Commission (LIRC). LIRC is comprised of three (3) commissioners: Laurie McCallum, Chair, Mr. Bill Jordahl, and Mr. David Falstad. Commissioner McCallum introduced Maria Gonzalez Knavel, General Counsel to LIRC; Ms. Tracey Schwalbe, Deputy General Counsel and Mr. Jeff Shampo, senior LIRC attorney. Commissioner McCallum gave a broad overview of LIRC's mission to provide a fair and impartial review of the decisions of the administrative law judges in three programs, Unemployment Insurance, Worker's Compensation and Equal Rights.

    8. Commissioner McCallum discussed administrative rule revisions that were proposed by LIRC.

  8. Public Hearing Comments: Mr. O'Malley provided an update from the public hearing held on Tuesday, November 15, 2016. The public hearing was held by teleconference at seven (7) different locations around the state, Madison, Eau Claire, Green Bay, La Crosse, Milwaukee, Superior, and Wausau. The hours of the public hearing were from 2-4 p.m. and the evening session from 6-7 p.m.

    9. Mr. Eric Roesler, Corporate Manager of Human Resources and Safety at AGRA Industries, Inc. in Merrill attended the public hearing at the Wausau location. His proposal was for a law change to establish a three (3) person board comprised of medical doctors to make determinations on apportionment for non-work-related preexisting conditions.

    Mr. Mark Grapentine from the Wisconsin Medical Society appeared at the public hearing at the Madison location. He spoke on behalf of the health care provider liaisons to discuss what the health care providers were doing to improve Wisconsin's health care system and the benefit of the health care provided to injured workers in this state. Mr. Grapentine presented a letter dated November 15, 2016 to the Council containing his testimony

  9. Public Proposals: There were no public proposals for legislative change covered at the meeting except for the proposals from Mr. Eric Roesler presented at the public hearing and Attorney Charles Domer concerning the elimination of the stenographic court reporters discussed earlier at the meeting.
  10. DWD 80 Wisconsin Administrative Code: Mr. O'Malley updated the Council on the transfer of certain administrative rules in ch. DWD 80 of the Wisconsin Administrative Code from the Department of Workforce Development to the Division of Hearings and Appeals as required in 2015 Wisconsin Act 55, section 9151.2 (g). Administrative rules that are primarily related to adjudicative functions will be transferred to the Division of Hearings and Appeals. Mr. O'Malley explained the process of identifying what rules were to be transferred in consultation with the Legislative Council and the Division of Hearings and Appeals.

    11. Of the 20 sections being transferred, some of the sections need to be re-written back into ch. DWD 80 of the Wisconsin Administrative Code. Mr. O'Malley explained the process needed to re-draft the rules back into ch. DWD 80 of the Wisconsin Administrative Code.

  11. Other Business of the Council: Mr. Dernbach provided feedback he received from some legislative members regarding the timing of last years agreed upon bill. He provided an update on the new assistant attorney general and fraud investigator hired at the Department of Justice to investigate and prosecute worker's compensation fraud. Mr. Dernbach also provided an update on the fraud webpage the Department recently launched. He announced that Rep. Bob Kulp will be the new Labor Committee chairman in the Assembly. Future meeting dates have been set for January 10th, February 14th, March 14th, April 11th, May 9th and June 13th with meetings scheduled to begin at 10:00 a.m.
  12. Adjournment: A motion was made by Mr. Reader, to adjourn and for the labor and management members to go into caucus. The motion was seconded by Ms. Bloomingdale The motion passed unanimously. The meeting was adjourned at about 11:50 a.m.