Members Present:                      Members Absent:

Steve Millard       Alan Gardner      Tracy Whigam
Jack Barrett        Dave Whaley       Dan Obray
Rian VanLeuven      Dave Gribskov     Keith Hutchinson
John Greenfield     Bob Shosted       Jim Nelson
Susan Dokken 

It was moved and seconded that the Minutes of the February 12, 2002, meeting of the Advisory Committee on Workers’ Compensation be approved as written. A correction was requested and made. The Minutes were approved as amended.

Subcommittee on Garnishments for Child Support Payments

John Greenfield reported that the subcommittee had met with Kirsten Ocker, Deputy Attorney General for the Department of Health & Welfare. She indicated she would meet with the appropriate staff in the Department of Health & Welfare and see whether they would agree to assigning a single percentage to the amount of workers’ compensation benefits they garnish for child support purposes. John Greenfield said that the subcommittee has thought about changing the IC Form 1 so there is a place to indicate that the claimant is paying child support. Also, even though the Department of Health & Welfare is not prosecuting the surety for failing to withhold garnishments for child support, the garnishments become liens with the Secretary of State. It is therefore possible that the spouse who is awarded child support could prosecute the surety. Alan Gardner is doing some research on this issue. It was after the next meeting, this subcommittee should be able to make a recommendation to the Advisory Committee. If the Advisory Committee agrees with the subcommittee’s recommendation, the Industrial Commission could meet with the Department of Health & Welfare and see if they would also agree to the Committee’s recommendations.

Subcommittee on Medical Release Form

Steve Millard reported that the subcommittee had met by teleconference and that he had met with the hospital group regarding the requirements for release of medical records. The subcommittee plans to meet again and to have a draft form ready for review by the next Advisory Committee meeting.

Subcommittee on Court Reporting and Transcript Costs

There was no report from this subcommittee.

A letter received from Boise attorney Mike Wetherell voicing objections to the Commission’s policy requiring payment by the parties for copies of hearing transcripts was reviewed and discussed. After discussion, it was the Committee’s consensus that although the policy had been adopted only as a short-term solution, it might be in derogation of the statute and should therefore be withdrawn.

Recommendation on Commission’s Policy on Transcript Copies:

After consideration, the Advisory Committee recommended that the Industrial Commission withdraw its policy requiring payment by the parties for copies of transcripts and work with the court reporters to cut costs another way.

Subcommittee Report and Recommendation on Industrial Commission Finances

Bob Shosted reported that the subcommittee on Industrial Commission finances had met and discussed solutions to the Commission’s financial problems. The subcommittee recommended to the Advisory Committee that the Industrial Commission propose legislation to increase the premium tax rate for a period of three to five years as a short-term solution to its current financial crisis. The subcommittee further recommended continued study of the issues affecting the Commission’s revenue and the development of a workable long-term solution.

After discussion and consideration of the issues, it was the Advisory Committee’s consensus that the subcommittee’s recommendations be adopted and the Industrial Commission proceed with the amendment of Idaho Code § 72-523, Source of Fund, to increase the premium tax rate from 2.5% to 3%, and to provide a sunset clause.

The draft legislation amending Idaho Code § 72-523, Source of Fund, increasing the premium tax from 2.5% to 3% and providing a sunset clause was reviewed and approved by the Committee.

The Commission uses Medata database for determining the appropriate charge for health care services (not including hospital charges) in Idaho. The database provider annually polls providers and calculates the amounts actually charged in order to determine the customary charge for a specific service. It is set up on the basis of what physicians actually charge, so an inflation factor is built in. The problems that constituents complain of are not problems with the database. It is because the database was originally set up to be an adjudication tool and it has become instead more like a fee schedule. In addition, there is a disparity between Medata and other databases used by sureties. Medata is based on the whole state of Idaho. Other databases use the amount paid as well as the amount charged, or they base their figures on zip code locations. Idaho is too small for that. Another problem that is perceived is that Idaho does not have a cost containment provision like some other states do.

Public comment regarding this issue was received from Dr. Wills and Dr. Maloff, surgeons from Pocatello, who treat workers’ compensation claimants, and from Ron Hodge, Associate Executive Director, Idaho Medical Association. Dr. Wills indicated he had not seen a significant improvement in the problems he presented to the Committee a year ago when the Committee was reviewing instate adjusting issues.

It was the consensus of the Committee that a subcommittee should be formed to review the concerns pertaining to the Commission’s use of the Medata medical fee database. The subcommittee’s first meeting should be held to appoint non-members such as providers, sureties, and other specialists. Subcommittee members are as follows: Alan Gardner, Chair, Dave Gribskov, Rian VanLeuven, Bob Shosted, Dave Whaley. Alan Conilogue of the Industrial Commission was also requested to attend.

Discussion was held regarding the material distributed to Committee members prior to the meeting. It was noted that the International Association of Industrial Accidents Boards and Commissions (IAIABC) is studying the problems of the 5^th Edition of the AMA Guide and that the 6^th edition is being worked on now. After discussion, it was the consensus that the Advisory Committee should take no action at this time. However, the Commission should keep the Committee advised of the ongoing activities of the IAIABC in relation to this matter.

Copies of House Bill 590, amending, among other sections, Idaho Code §§ 72-517, 720, and 722 were provided to the Committee members for information purposes. The legislation was reviewed and discussed. The amendment to Idaho Code § 72-517 provides the Commission with the authority to review and preapprove expenses of programs that it is contracting with other agencies to administer. House Bill 599, amending Idaho Code § 72-412 was briefly reviewed.

The Commission’s Judicial Rule XX, Change of Physician, was brought before the Committee for consideration of some way to ensure that the surety receives a copy of the petition for change of physician filed by a claimant when the law only requires service on the employer. After review and discussion, it was suggested that the petition form be modified to contain a statement in bold print that the employer must notify the surety. The Commission could also forward a copy of the petition to the surety when it is filed. It was suggested that these methods be instituted by the Commission for six months and then the Commission could report back to the Committee on how well it is working.

The next meeting of the Advisory Committee was set for Tuesday, August 13, 2002. The agenda for the Committee’s next meeting will include the following subcommittee reports:

Med Fee Database

Transcript/Court Reporting

Medical Release Form

Garnishment for Child Support Payments

Discussion was held regarding regular attendance at Committee meetings. It was the consensus that if a member is too busy to attend the meetings on a regular basis, he/she should notify the Committee before too many meetings are missed. It is essential to the Committee to have full participation by the whole industry. There are a number of individuals who have expressed an interest in serving on the Committee. It was suggested that a subcommittee be set up to review the Committee Charter and make a recommendation regarding attendance. Subcommittee members are Dave Whaley, Sue Dokken, and Bob Shosted.

The meeting was thereafter adjourned.