Workers' compensation amendments.

09LSO-0093.C2

FISCAL NOTE-CORRECTED COPY

This bill contains an appropriation of $200,000 from the WORKERS COMPENSATION ACCOUNT established by W.S. 27-14-701(a).

This bill contains an authorization of 2 Full-Time positions.

	FY 2010	FY 2011	FY 2012
NON-ADMINISTRATIVE IMPACT
Anticipated Revenue Increase:
INDUSTRIAL ACCIDENT FUND	11,195,029	11,254,918	11,318,733

The enhanced benefit provisions contemplated by this legislation will escalate fiscal requirements on the Industrial Accident Fund, thereby potentially increasing employer premiums proportionately.

Source of revenue increase:

27-14-108(k) Pages 4-5, Estimated premiums from additional employers electing coverage - (2010 - $844,852, 2011 - $904,741, 2012 - $968,556);

27-14-403 Pages 7-13, Employer premiums estimated to fund increased benefits (estimate $6,719,518/year);

27-14-404(c)(ii) Page 14, Continuation of TTD payment (estimate $350,000/year);

27-14-405(g) Page 14, PPI 44 to 60 months, (estimate $3,280,659/year);

27-14-408(e)(ii) Page 15, Vocational Rehabilitation time extension, no fiscal impact;

27-14-511 Page 15, Recovery of benefits, fiscal impact is indeterminable;

27-14-602(d) Page 17, Reconsideration of decision due to attorney error, impact is indeterminable.

Assumptions:

27-14-108(k), Estimate for 2010, 738 additional individuals will elect (increasing at 2% per year thereafter);

27-14-404, Average number of months to process a PPI rating after TTD is stopped is three months which is multiplied by an average TTD payment based on the current number of claimants receiving TTD;

27-14-405(g), Rates would need to be increased by an average of 1.1% to collect enough premiums to support the higher benefit level.

	FY 2010	FY 2011	FY 2012
NON-ADMINISTRATIVE IMPACT
Anticipated Revenue (Decrease):
INDUSTRIAL ACCIDENT FUND	(979,711)	(979,711)	(979,711)

Source of revenue decrease:

27-14-105(a) Page 4, Subrogation limitation (estimate $979,711/year);

27-14-201(q) Page 6, Premium credit, granting a credit to eligible employers is indeterminable and in the context of fiscal impact is probably revenue neutral.

Assumptions:

27-14-105(a), Limitation of third party recovery due to sharing in fees and costs on a pro rata basis results in an estimated decrease in annual subrogation revenue;

27-14-201(q), is contingent on the annual actuarial determination of premium rates consistent with the statutory provisions of the Act.

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	FY 2010	FY 2011	FY 2012
NON-ADMINISTRATIVE IMPACT
Anticipated Expenditure Increase:
INDUSTRIAL ACCIDENT FUND	9,812,686	9,846,796	9,868,517

The potential expenditure increase in general is attributed to enhanced benefit provisions for injured workers, their spouses and dependent children.

Source of Expenditure Increase:

27-14-108(k) Pages 4-5, Estimated increase in additional claims costs due to additional coverage election – (2010 - $276,188, 2011 - $310,298, 2012 - $332,019);

27-14-403(b) Pages 7-8, Increase in children’s benefits (estimate $974,677/year);

27-14-403(c) Page 8, PPI COLA, indeterminable impact;

27-14-403(c) Pages 8-9, TTD minimum award (estimate $248,477/year);

27-14-403(c)(iv) Pages 9-10, Death benefit (estimate $76,364/year);

27-14-403(c)(v) Page 10, PTD COLA (estimate $3.5 million/year);

27-14-403(e)(iii) Pages 10-11, Surviving spouse benefits to 100 months (estimate $1.5 million/year);

27-14-403(e)(v) Pages 11-12, Surviving parents benefits based on current caseload, impact is not significant;

27-14-403(k)(iii) Page 13, Unavailable medical care in Wyoming, impact is not significant;

27-14-404(c)(ii) Page 14, Continuation of TTD payment (estimate $350,000/year);

27-14-405(g) Page 14, PPI 44 to 60 months, (estimate $2,886,980/year);

27-14-408(e)(ii) Page 15, Vocational Rehabilitation time extension, no fiscal impact;

27-14-511 Page 15, Recovery of benefits, fiscal impact is indeterminable;

27-14-602(d) Page 17, Reconsideration of decision due to attorney error, impact is indeterminable.

Assumptions:

27-14-108(k), Estimate an additional 20 new claims in 2010 for new coverage, increasing at a rate of 2.71%/year at an average claim cost of $12,906, increasing at 7%/year;

27-14-403(c)(v), PTD COLA, The Division assumed, based on the current language of the proposed legislation, that all recipients of PTD benefits on and after the date of enactment would receive an annual adjustment as specified;

27-14-404(c)(ii), Average number of months to process a PPI rating after TTD is stopped is three months which is multiplied by an average TTD payment based on the current number of claimants receiving TTD;

27-14-405(g), Rates would need to be increased by an average of 1.1% to collect enough premiums to support the higher benefit level.

NOTICE-AGENCY ESTIMATE OF ADMINISTRATIVE IMPACT REQUESTED

This bill has administrative impact that appears to increase (or decrease) duties or responsibilities of one or more state agencies and may impact agency spending or staffing requirements.

The following state agencies will be asked to provide their estimate of the administrative fiscal impact prior to the first committee meeting held to consider the bill:

Department of Employment

Prepared by:   Gary Child, Dept of Employment Phone: 777-7672