The Colorado General Assembly recently enacted several new laws that affect workers' compensation and insurance practitioners. The most significant development was the failure to reenact the automobile no-fault law. As of July 1, 2003, liability for personal injuries stemming from auto accidents is governed by a tort-based system where the at-fault driver is liable for the medical bills of all injured persons. This change should permit workers' compensation insurers dollar-for-dollar subrogation recoveries against at-fault drivers. Here is a summary of pertinent bills:
HB 1222--Electronic filing of documents with the Division of Workers' Compensation: Amends C.R.S. § 8-43-203(1)(a) and creates new § 8-43-104 to allow an employer or its insurer to electronically notify the division of a contested or admitted liability regarding an injured or deceased employee. The rejection of an electronically filed notice by the division shall not affect the validity of the notice to the claimant or any other party. Also amends § 8-44-110 to eliminate the requirement that an insurer notify the division if they cancel an employer's coverage for workers' compensation. Effective August 5, 2003, unless a referendum is filed.
HB 1322--Changes in the procedures for workers' compensation hearings: Amends C.R.S. § 8-43-203(2)(b)(II) to state that if a division-sponsored independent medical examination (DIME) is requested, the claimant is not required to file a request for a hearing on disputed issues that are ripe for adjudication until after the DIME is completed, and then claimant will have 30 days from the filing of respondents' revised final admission of liability or application for hearing to file an application for hearing or response to application for hearing on any disputed issues that are ripe for hearing. Effective May 22, 2003, this portion of the bill applies to injuries that occur on or after August 5, 1998. The bill also amends § 8-43-209 to clarify that hearings must be held within 80 to 100 days after the occurrence of any event specified in § 8-43-211(2), and that an administrative law judge (ALJ) must grant an extension of time of up to 60 days to commence the hearing if agreed upon by the parties. Also creates new § 8-43-211(2)(e) to require, except in claims where compensability is contested, that the party requesting a hearing must certify in writing that the party attempted, in good faith, to resolve all issues with the other parties. A new application for hearing form has been adopted to reflect the certification requirement and is available on the division web site. These changes apply to claims filed or pending on or after July 1, 2003.
SB 106--Concerning third-party damages subject to subrogation in workers' compensation claims that are paid: Amends C.R.S. § 8-41-203 to state that in cases of on-the-job injury or death caused by a third party not in the same employ, a claimant may collect workers' compensation and sue the third party for any economic and non-economic damages not covered by workers' compensation. When an insurer pays workers' compensation benefits to a claimant, the insurer has the right to recover future benefits, and all moneys collected from the third party for all economic damages and physical impairment and disfigurement damages, but not moneys collected for non-economic damages. Reasonable attorney fees and costs paid by the injured employee or his or her dependents in pursuing the action against the third party are excluded from the insurer's right to recover, unless the insurer independently pursues its subrogated cause of action against the third party. The bill also provides that if a claimant gives a third party notice of a pending claim, the claimant also must notify the insurer and the Division of Workers' Compensation of the third party claim. If such notice is not given, claimant will not be entitled to attorney fees for the portion of a settlement equal to the insurer's interest. Applies to injuries occurring on or after July 1, 2003.
SB 240--Changes to the selection process for DIME physicians: Amends C.R.S. §§ 8-42-107 and 8-42-107.2 to state that if the parties agree on the DIME physician, such selection must be done no earlier than 14 days and no later than 30 days after a notice and proposal to select the physician is filed. If the parties cannot agree on the physician, then, within 10 days of receiving notice of failed negotiations, the division will provide a list of three physicians. The party requesting the DIME will have first opportunity to strike a name, and then the opposing party may strike a name. The remaining physician shall perform the DIME. If one or neither of the parties exercises the strike, the division will select the DIME physician from the names remaining on the list. The bill also provides that respondents must provide medical records to the DIME physician within 14 days prior to the DIME. If respondent fails to timely submit the records, then the claimant may request cancellation of the DIME, or submit all available medical records within 10 days of the DIME. Supplemental medical records must be submitted within seven days. Effective August 5, 2003.