No one has ever accused me of being a clairvoyant. Heck, if I had the ability to predict the future, I never would have traveled out to Denver to watch the Packers get pushed around by the Broncos. But every so often, I accumulate enough information to make an educated guess on future events. That includes events that could change the worker’s compensation landscape in Wisconsin.
Proposed changes to the work comp act are coming in from all directions but there are definitely some common themes that have emerged. From the Governor's budget bill, to the Worker's Compensation Advisory Council's agreed bill, to a potential bill from State Representative John Spiros, it doesn't take an omniscient soothsayer like Carnac the Magnificent to figure out that change is on the horizon. Here's a summary of most of the changes that I anticipate you will see take effect in 2016. These changes will have an impact on your workers compensation premiums going forward.
- The rate paid for permanency due to injuries and surgeries is going up. Look for increases averaging about 6% each year over the next two years. That bodes well for injured workers and the attorneys who represent them.
- Injured workers who are permanently and totally disabled with an injury date of 1/1/2003 and earlier are going to get a raise in the disability benefits they receive.
- Injured workers who are going to school for retraining will be able to work a part-time job up to 24 hours without having an offset on their disability payments. They now have the potential of making more money on worker’s compensation than they were making at the time they were injured.
- Medical providers will now have limitations on what they can charge for medicines dispensed at their offices.
- Medical providers will also have limitations on what they can charge payers for electronic medical records. That limit will most likely be $10 per request.
- An injured worker will have less time to file a claim against their employer. The statute of limitations will move from 12 years to at least 6 years. Maybe even 2 years.
- Permanency ratings for injuries, provided by physicians, will now be offset by pre-existing permanent disabilities and physical impairments.
- Injured workers on light duty who are terminated for good cause based on UI standards will no longer be able to collect Temporary Total Disability (TTD) payments.
- Administrative Law Judges will have the ability to force you to pay for retraining your injured workers when you are unable to accommodate permanent restrictions, even before they have stepped foot in a classroom. This will increase the settlement value of future claims.
So let’s be clear; this is just my speculation. If I truly had the ability to predict the future, I would be sipping pina coladas on a warm beach somewhere right now. But here I am living in Wisconsin and the only thing I know for sure is that it’s going to get much colder very soon. At least I think it will.
If you would like to discuss how these potential changes could impact the cost of your worker’s comp, or better yet, if you would like some advice on how to best position yourself to make the most of these changes, please contact me so that we can discuss further.
