Upon motion duly made and seconded, the Minutes of August 13, 2002 were approved as amended.

This agenda item was taken out of order due to the constraints of the speaker’s travel schedule. Mike Taylor, NCCI, gave a presentation to the Committee members on the state of the workers' compensation insurance industry in Idaho. His presentation included rate trends, accident frequency, and medical and indemnity cost-trends, both nationally and for Idaho. Mr. Taylor reported that the 2002 calendar year statistical information from insurance companies would be the basis for the 2004 premium rate. Mr. Taylor also mentioned that the terrorism bill and the new HIPAA regulations could affect workers’ compensation costs.

Subcommittee Chair John Greenfield reported that he, Jack Barrett, and Alan Gardner met with Kirsten Ocker, the Deputy Attorney General for Health & Welfare, Division of Human Services/Child Support, to draft proposed statutory amendments to allow the Department of Health & Welfare to withhold up to fifty percent (50%) of worker’s compensation monthly or lump sum payments. It was suggested that the statute also be amended to clarify that child support garnishments may only be made against workers' compensation "income" benefits and not against workers' compensation medical benefits or attorney fees and litigation costs incurred in securing workers' compensation. The subcommittee plans to meet tomorrow to finalize the amended language in Idaho Code § 32-1403

Jack Barrett and Alan Gardner recommended that John Greenfield draft a letter of acceptance supporting the proposed amendments to IC § 32-1403 provided that Health & Welfare approves the amended language. A draft copy of the acceptance letter will be forwarded to the Commission and the Advisory Committee members for review and comment.

Steve Millard had no report at this time.

Bob Shosted reported on the meetings that have been held over the last several months. The subcommittee's recommendation for this year is for the Commission to proceed with its education of the germane legislative committees regarding the Commission's needs. The Advisory Committee will work with the Commission on its presentation. Future legislation for consideration may be a premium tax increase with a triggering mechanism. The legislation would include the formation of an oversight committee to review the Commission's annual budget to allay employers’ concerns about funding needs increasing every year. The subcommittee will continue to explore a reduction in insurance company deviations, the Division of Building Safety structuring a fee-based inspection program, and alternate funding of the Division of Building Safety. Jack Barrett suggested restricting access to the Industrial Special Indemnity Fund by statute to reduce the amount insurers pay the ISIF, which may be helpful in getting the approval of a premium tax increase. Mr. Barrett also suggested that the Commission explore charging a fee to file claims or complaints. Mr. Barrett posed the question of the constitutionality of the DBS using dedicated funds to support the inspection of public buildings.

Subcommittee Chair Alan Gardner reported that several meetings have been held by the physician and hospital task forces headed by Alan Conilogue. The task force discussions have included developing a database for CPT codes for guidance in medical fee disputes, establishing a percentage of that database to be paid providers, researching different payment procedures for hospital reimbursement such as diagnosis-related grouping, per diem or percent off billed charges and others. Mr. Gardner will be expanding the task forces to include other specialty members to gain a more equal representation of the groups affected. Susan Dokken suggested inviting chief financial officers from different hospitals around the state to join in the discussion.

Susan Dokken, subcommittee chair, indicated that the subcommittee members reviewed the Advisory Committee Charter and agreed that no revision was necessary. The charter addresses the attendance issue adequately. The subcommittee decided that if attendance at the Advisory Committee meetings becomes an issue, then the Commissioners should bring it to the Committee again.

Keith Hutchinson, subcommittee chair, reported that inasmuch as the language of Idaho Code § 72-515(3) specifically provides that the Commission may charge everyone for copies of a transcript except the employer and the claimant, the subcommittee feels that it is no longer feasible to pursue the issue unless requested to do so by the Commission.

John Greenfield spoke to the Advisory members regarding the Hoskins v. Circle A Construction Supreme Court case. Mr. Greenfield filed an appeal seven months ago and to date, no action has been taken by the Supreme Court. Alan Conilogue noted that at least two sureties are now paying claims based on the Hoskins case and are excluding overtime in the calculation of the claimant’s average weekly wage. If the Supreme Court does not reverse its decision, Mr. Barrett suggested the Committee be ready to draft legislation to present this year to address the overtime issue. Mr. Barrett asked for a consensus of the members regarding the appeal of the overtime exclusion and to appoint a subcommittee to draft legislation for this session. The draft would be sent to all Advisory Committee members and the Commission for immediate review if the Supreme Court denies the petition. Tracy Whigam requested proceeding with the proposed

legislation whether or not the Supreme Court takes any action. There was consensus that a subcommittee should be appointed to draft legislation, regardless of the action of the Supreme Court in the Hoskins case. The subcommittee members are Jack Barrett, Chair, John Greenfield, Alan Gardner, and Keith Hutchinson.

Lonna Gray informed the Commission that this pending Supreme Court appeal is causing problems in settling cases for the Industrial Special Indemnity Fund.

ISIF Annual Report

Lonna Gray, Manager of the Industrial Special Indemnity Fund, distributed copies of the Fund’s annual report and the report for the current quarter. Ms. Gray reviewed the annual report and responded to questions.

Attorney Woody Richards gave a presentation on the problems involved when insurance companies become insolvent. Mr. Richards reported that Idaho is one of six states in the Western Guaranty Association. The other states are Washington, Kansas, Colorado, Wyoming, and Montana. These states have joined together and created an association with staff to adjust workers’ compensation claims for insurers that have been declared insolvent. It was noted that through June 30, 2002, the Idaho Insurance Guaranty Association had processed claims relating to forty-five insolvent insurance companies operating in Idaho.

Advisory Committee members commented on the publication of the redacted versions of Commission decisions, indicating that they are difficult to read and use. After discussion, Jack Barrett suggested that in the long term, legislation should be enacted to allow Commission decisions on workers' compensation claims to be public records. The attorney members of the Committee plan to take the discussion to the annual meeting of the Workers’ Compensation Section of the Idaho State Bar in March and will then report back to the Advisory Committee.

Copies of the Commission's Judicial Rules of Practice and Procedure with the proposed amendments were distributed. Commission Chairman James Kile asked the members to review the proposed changes for comment at the next Advisory Committee meeting. The Commissioners will be holding open hearings around the state to receive comments on the changes that have been proposed. Notice of the open hearings will be published.

Commission Chairman James Kile announced that this meeting would be Commission Secretary Pat Ramey's last Advisory Committee meeting. Chairman Kile thanked Pat for her 30 years of dedication and service to the Industrial Commission, and the Committee members applauded in concurrence.

Chairman Dave Whaley reminded members to notify the Commission or him as soon as possible if they have any items for the next meeting.

Garnishment of Workers' Comp Benefits for Child Support (Chair, John Greenfield)

Medical Release Form (Chair, Steve Millard)

Medical Fees (Chair, Alan Gardner)

Supreme Court appeal on Hoskins v. Circle A Construction (Chair, John Greenfield)

The next Advisory Committee meeting was scheduled for Tuesday, March 18, 2003.