Legislature(2001 - 2002)

02/04/2002 03:15 PM House L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HB 274-EXPEDITED WORKERS' COMPENSATION HEARING                                                                                
                                                                                                                                
CHAIR  MURKOWSKI announced  the  first order  of business,  HOUSE                                                               
BILL  NO. 274,  An  Act relating  to  workers' compensation;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
Number 0110                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MEYER  moved  to  adopt  the  proposed  committee                                                               
substitute  (CS)  [version  22-LS0983\J,  Ford,  2/4/02]  as  the                                                               
working document.                                                                                                               
                                                                                                                                
CHAIR MURKOWSKI announced that Version J was adopted.                                                                           
                                                                                                                                
Number 0124                                                                                                                     
                                                                                                                                
REPRESENTATIVE  JOHN COGHILL,  Alaska State  Legislature, sponsor                                                               
of HB  274, explained that the  bill would do two  things:  allow                                                               
for expedited  hearings for workers' compensation  cases, and ask                                                               
that doctors who perform the evaluations be licensed in Alaska.                                                                 
                                                                                                                                
Number 0198                                                                                                                     
                                                                                                                                
CHAIR MURKOWSKI asked  what would happen if  the examination were                                                               
to  take place  outside of  Alaska.   She said  she gathers  that                                                               
where the exam takes place is important.                                                                                        
                                                                                                                                
REPRESENTATIVE COGHILL said in [Version  J], page 1, line 11, the                                                               
wording  states  "[in  which]   the  examination  occurs".    The                                                               
intention  is  that if  the  examination  occurs in  Alaska,  the                                                               
physician must  be licensed  in Alaska.   If  the exam  occurs in                                                               
another state, the physician must be licensed accordingly.                                                                      
                                                                                                                                
REPRESENTATIVE  COGHILL  said  HB   274  also  aims  to  expedite                                                               
[workers'  compensation] hearings.   Many  times, people  who are                                                               
injured  must go  through an  appeals process,  while the  injury                                                               
does not  stop; injuries  have been exacerbated  from that.   The                                                               
intent is  to get a  hearing sooner if  there is a  medical need.                                                               
This gives the [Alaska Workers'  Compensation Board] the language                                                               
to  do  so.   The  board  may, based  on  an  appeal, schedule  a                                                               
hearing, but  doesn't have to.   Referring  to page 2  [lines 25-                                                               
26],  he noted  that  [the  board or  the  board's designee]  can                                                               
determine  whether  the  claim   involves  an  issue  of  medical                                                               
treatment  and  an  expedited  hearing   is  necessary  to  avoid                                                               
physical harm.                                                                                                                  
                                                                                                                                
Number 0380                                                                                                                     
                                                                                                                                
CHAIR MURKOWSKI  asked what had precipitated  the introduction of                                                               
HB 274.                                                                                                                         
                                                                                                                                
REPRESENTATIVE COGHILL  mentioned routine work in  the office and                                                               
said that several constituents have come to him.  He added:                                                                     
                                                                                                                                
     Some of  them have  joined themselves  to organizations                                                                    
     which have other agendas than  what I might have.  But,                                                                    
     certainly,  this point  was brought  up, over  and over                                                                    
     again.  So  I think that ...  it was a good  fix.  This                                                                    
     does not  fix everything that  all of my  friends want,                                                                    
     believe  me.   But I  think it's  a move  in the  right                                                                    
     direction.   It's something that  we can do.   It makes                                                                    
     it  very  clear.  ...  It  was  constituent  work  that                                                                    
     brought this to light.                                                                                                     
                                                                                                                                
Number 0437j                                                                                                                    
                                                                                                                                
REPRESENTATIVE CRAWFORD  noted that  in Section  2, line  24, the                                                               
word "may" is used.  He asked why  that is, when HB 274 is trying                                                               
to get expedited hearings.                                                                                                      
                                                                                                                                
REPRESENTATIVE  COGHILL replied  that there  is a  prioritization                                                               
process that  the board deals with,  and this provides a  tool to                                                               
do  that.    There  probably   are  going  to  be  appeals  where                                                               
discretion is needed;  that is why he'd believed  there should be                                                               
discretion there, instead of a directive.                                                                                       
                                                                                                                                
Number 0509                                                                                                                     
                                                                                                                                
REPRESENTATIVE  CRAWFORD  said  it  seems  that  if  the  board's                                                               
designee determines that  the claim involves an  issue, then that                                                               
would be reason to go ahead with it.                                                                                            
                                                                                                                                
REPRESENTATIVE  COGHILL  replied that  Representative  Crawford's                                                               
point  was well  taken.    Representative Coghill  said  it is  a                                                               
policy call  as to whether, once  the board makes a  decision, it                                                               
should then  become a  directive.   He said  he'd hoped  to start                                                               
with  having   these  as  [possible]   tools,  leaving   as  much                                                               
discretion as he  could, because there are times when  it is kind                                                               
of a check and balance.                                                                                                         
                                                                                                                                
Number 0570                                                                                                                     
                                                                                                                                
CHAIR MURKOWSKI  offered that it  appears the board  may schedule                                                               
the  hearing  if it  determines  that  it  involves an  issue  of                                                               
medical treatment and that the  expedited hearing is necessary to                                                               
avoid physical harm.   There could be a situation  in which there                                                               
is a  determination that  yes, this revolves  around an  issue of                                                               
medical  treatment,  but  that   a  delay  won't  compromise  the                                                               
physical  condition of  the employee.    This is  when the  board                                                               
would have  discretion regarding  whether to put  the case  on an                                                               
expedited or  routine basis.   She asked whether she  was reading                                                               
it correctly.                                                                                                                   
                                                                                                                                
REPRESENTATIVE  COGHILL deferred  to  Mr.  Grossi, suggesting  it                                                               
connects to several other issues.                                                                                               
                                                                                                                                
CHAIR   MURKOWSKI  asked   if  anyone   else  had   questions  of                                                               
Representative Coghill before Mr. Grossi testified.                                                                             
                                                                                                                                
REPRESENTATIVE   ROKEBERG  referred   to   the  written   sponsor                                                               
statement and mentioned  that HB 274 would  require any physician                                                               
conducting the examination  in Alaska to be  licensed to practice                                                               
in Alaska.   He asked if it would be  permissible for an employer                                                               
to select a physician outside of Alaska.                                                                                        
                                                                                                                                
REPRESENTATIVE COGHILL  said yes,  provided that  the examination                                                               
took place outside  of Alaska.  He directed attention  to page 1,                                                               
line 11,  where it  says the  physician must  be licensed  in the                                                               
state where the examination occurs.                                                                                             
                                                                                                                                
Number 0705                                                                                                                     
                                                                                                                                
PAUL  GROSSI,   Director,  Division  of   Workers'  Compensation,                                                               
Department  of  Labor  &   Workforce  Development  (DLWD),  first                                                               
addressed why  "may" was used  instead of  "shall".  He  said the                                                               
main reason  is that  everyone believes his/her  own case  is the                                                               
most important,  and should be  prioritized [accordingly].   This                                                               
language  provides a  method of  [prioritizing]  and putting  one                                                               
case in  front of another  case.   Although it shouldn't  be done                                                               
all the time, for  those cases where it is needed  - such as when                                                               
a person needs the treatment in  order to prevent physical harm -                                                               
this authority will be utilized.                                                                                                
                                                                                                                                
Number 0820                                                                                                                     
                                                                                                                                
MR. GROSSI, in response to  a question from Chair Murkowski, said                                                               
currently one  case can jump  in front  of another, but  there is                                                               
the question of  whether "we" have authority to do  so.  With the                                                               
bill, the  authority is clearly  there.  Regarding where  an exam                                                               
occurs,  he  said this  has  always  been  a  bit of  a  conflict                                                               
[between  Alaska]  statute  and   the  Division  of  Occupational                                                               
Licensing;  the  latter says  [a  doctor]  must be  licensed  for                                                               
treatment in the state.  He  noted that, in fact, there have been                                                               
complaints after doctors  from other states have  been brought in                                                               
and then  done an examination.   Mr.  Grossi said [HB  274] would                                                               
clarify that and  conform better to the  Division of Occupational                                                               
Licensing's requirements.                                                                                                       
                                                                                                                                
CHAIR MURKOWSKI  asked Mr. Grossi  if his division is  in support                                                               
of HB 274.                                                                                                                      
                                                                                                                                
MR.  GROSSI said  the  Division of  Workers'  Compensation is  in                                                               
support of HB 274.                                                                                                              
                                                                                                                                
Number 0930                                                                                                                     
                                                                                                                                
REPRESENTATIVE  HAYES  asked how  a  doctor  becomes licensed  in                                                               
Alaska.                                                                                                                         
                                                                                                                                
MR.  GROSSI said  he  didn't  have the  expertise  to answer  the                                                               
question.  He offered to get that information.                                                                                  
                                                                                                                                
Number 1000                                                                                                                     
                                                                                                                                
KERWIN  TSCHETTER  testified via  teleconference.    He began  by                                                               
saying that  the employers  and the  insurance companies  seem to                                                               
want  to know  everything  about the  injured workers,  including                                                               
prior medical  information.   Although he  didn't have  a problem                                                               
with  that, he  objected that  information regarding  the medical                                                               
decision process wasn't being relayed to the injured worker.                                                                    
                                                                                                                                
MR. TSCHETTER said  he'd presented his personal case  in front of                                                               
Mr. Grossi; the  Division of Insurance; the  Division of Workers'                                                               
Compensation; and  former Governor Knowles'  secretary, Elizabeth                                                               
Roberts  (ph).    He  said  he'd   asked  them  to  look  at  the                                                               
information he'd presented and to get  in touch with him, with no                                                               
success.   Mr. Tschetter expressed frustration  with the process,                                                               
saying he  didn't think  his own  case was  "strictly anecdotal."                                                               
He  said he  thinks  many  other Alaskans  who  are injured  have                                                               
similar circumstances.                                                                                                          
                                                                                                                                
MR. TSCHETTER recounted  how in July 1996, on the  first day of a                                                               
new job, he'd slipped  and twisted his leg and felt  a "rip go up                                                               
my leg  and a pop below  the knee."   He said he was  referred by                                                               
the company  to a clinic in  Anchorage, but the doctor  failed to                                                               
take an X-ray  and sent him back  to work with a broken  leg.  He                                                               
said he'd worked another week with a broken leg.                                                                                
                                                                                                                                
Number 1208                                                                                                                     
                                                                                                                                
MR.  TSCHETTER   expressed  frustration  that  he   couldn't  get                                                               
information regarding his case from anyone.   He went back to the                                                               
doctor  the following  week,  and  an X-ray  showed  the leg  was                                                               
broken below the knee.  He was  told he would need surgery to pin                                                               
the  ankle and  would  require a  cast.   He  was  referred to  a                                                               
surgeon  in Anchorage  who took  some more  X-rays and  concurred                                                               
with  the diagnosis.   Mr.  Tschetter had  asked if  he could  be                                                               
referred to a  doctor in Fairbanks for the surgery.   He said the                                                               
doctor in Fairbanks had told  him that surgery was not indicated,                                                               
and that the doctor was sending him back to work.                                                                               
                                                                                                                                
MR. TSCHETTER said  he'd tried calling the nurse  assigned to him                                                               
by  the insurance  company, and  was told  he wasn't  entitled to                                                               
another  medical  opinion.   He  was  told  he could  appeal  the                                                               
decision  to the  Alaska Workers'  Compensation  Board, but  that                                                               
[the board]  would contest  the issue until  it "would  be moot."                                                               
He added,  "I found  out that in  California, where  this company                                                               
resides, that the  doctors were subject to  receiving a financial                                                               
incentive for minimizing the medical care."                                                                                     
                                                                                                                                
Number 1320                                                                                                                     
                                                                                                                                
MR.  TSCHETTER  reported  that he'd  called  the  first  doctor's                                                               
clinic in Anchorage  and asked why an X-ray was  not taken on the                                                               
first visit; he was told the  insurers didn't want to pay for the                                                               
diagnostic test if  it turned out negative.  He  said he was sent                                                               
to work twice with a broken leg.   He remarked, "To this day, the                                                               
bone was  left to  heal by  itself.   The only  medical treatment                                                               
that I've  had for that  injury is that I  was sent back  to work                                                               
with a  splint the second time."   He asked whether  this bothers                                                               
anybody.                                                                                                                        
                                                                                                                                
MR. TSCHETTER emphasized that the  medical report from the second                                                               
doctor not only  changed the description of his  injury, but also                                                               
changed  the description  to  say that  the  injury had  occurred                                                               
previously.   No one told him  there was a change  in the medical                                                               
report,  for almost  two years.    No one  told him  there was  a                                                               
problem with the  claim.  He concluded with  the following point:                                                               
"If you're  not given  specific information  to make  an informed                                                               
consent,  you  won't  even  know whether  there's  a  problem  or                                                               
[whether] you should even ask for an expedited hearing."                                                                        
                                                                                                                                
Number 1490                                                                                                                     
                                                                                                                                
ED  MEYER testified  via teleconference,  thanking Representative                                                               
Coghill for the  bill, which he characterized as "good  as far as                                                               
it  goes."   He  said  he wants  expedited  hearings, and  thinks                                                               
"shall" - not  "may" - should precede  "schedule" regarding those                                                               
hearings.   He  said  if  it is  established  that  a hearing  is                                                               
necessary, it is  still optional for the board,  giving the board                                                               
too much  leeway.  Mr.  Meyer said  he is pleased  the physicians                                                               
will be  licensed in Alaska or  where the exam occurs.   He urged                                                               
the committee to  not take HB 274  "as a big step,  in any sense,                                                               
toward helping injured  workers."  As Mr.  Tschetter pointed out,                                                               
Mr. Meyer  said it  isn't necessarily  [true] that  a physician's                                                               
report  or  recommendations can  be  trusted;  that needs  to  be                                                               
addressed.  He added, "Maybe employees  should have a say in what                                                               
physicians are going to determine their lives."                                                                                 
                                                                                                                                
MR. MEYER offered  a second point, that the board  doesn't have a                                                               
physician  or  medical  expert  on  it,  and  yet  makes  medical                                                               
decisions about expediting medical treatment.   He asked that the                                                               
committee  consider  whether  to  add medical  expertise  to  the                                                               
Alaska Workers' Compensation Board, which is doing the review.                                                                  
                                                                                                                                
Number 1603                                                                                                                     
                                                                                                                                
BARBARA  BECKMAN  testified  via teleconference  on  "this  much-                                                               
needed piece  of legislation."  She  said out-of-state physicians                                                               
are  no more  than "paid  medical  opinions, with  really ...  no                                                               
recourse on  their ... opinions"; the  same is true of  the group                                                               
of physicians  used in-state by  the insurers.  She  added, "They                                                               
are led  by the adjusters  writing letters  to them prior  to the                                                               
exam, ... basically  leading the exam, to render  an opinion that                                                               
they  want.   And we  all know  the bottom  line is  the dollar."                                                               
With regard to the expedited  hearing, Ms. Beckman suggested that                                                               
injured  workers wouldn't  request a  hearing unless  they needed                                                               
it.   She  added,  "I wouldn't  be here  today,  over five  years                                                               
later, had I gotten the board or  someone to step in and allow me                                                               
to get  the medical care  I needed."   She agreed with  Mr. Meyer                                                               
regarding the need to have medical expertise on the board.                                                                      
                                                                                                                                
MS.  BECKMAN  also said  the  insurers  shouldn't be  allowed  to                                                               
controvert  medical  benefits until  a  board  hearing has  taken                                                               
place.  She said she was  denied much longer than she should have                                                               
been, which  is why  she suffers  from the  disease she  has now.                                                               
She said  no one reviews what  goes to the board.   Understaffing                                                               
of the division is a big  problem, and the staff aren't qualified                                                               
to make the determinations.   She concluded by saying the wording                                                               
in HB 274 needs to be "shall", not "may".                                                                                       
                                                                                                                                
Number 1750                                                                                                                     
                                                                                                                                
ERIC  BECKMAN  testified  via  teleconference.    He  agreed  the                                                               
wording on HB 274  needs to be changed to "will"  or "shall".  He                                                               
told members he'd  filed for an expedited hearing  and waited for                                                               
over two  years; there  was no  response from  the state  when he                                                               
filed.   He said,  "I don't  believe that  ... anybody  should be                                                               
able  to  be cut  off  by  the  insurance  company alone,  or  be                                                               
controverted by them,  until they ... have  an expedited hearing.                                                               
I believe that that practice should stop."                                                                                      
                                                                                                                                
MR.  BECKMAN   said  the  medical  examinations   are  being  led                                                               
specifically by  a questionnaire that basically  leads the doctor                                                               
through the  examination as to  what he/she is  going to do.   He                                                               
asked:   When did a  medical doctor need  an adjuster to  lead an                                                               
examination  with  a questionnaire?    He  said the  practice  of                                                               
sending a  letter to  the doctor  to guide  them through  an exam                                                               
should  be  stopped, and  suggested  that  the stopping  of  that                                                               
practice should be included in HB 274.                                                                                          
                                                                                                                                
Number 1911                                                                                                                     
                                                                                                                                
CHAIR MURKOWSKI  called an at-ease at  3:54 p.m.  She  called the                                                               
meeting back to order at 3:57 p.m.                                                                                              
                                                                                                                                
MR. BECKMAN  concluded by asking  the committee to  consider some                                                               
of  the  testimony given  in  1998,  which  he believes  will  to                                                               
substantially reinforce this law so that it works.                                                                              
                                                                                                                                
Number 1967                                                                                                                     
                                                                                                                                
CINDY MAEL testified  via teleconference.  She said  she feels an                                                               
appropriate exam needs  to be conducted in regard  to the injury,                                                               
including the extent of the injury  and the amount of time during                                                               
which  it has  been  sustained.   She  suggested the  examination                                                               
should be  pertinent to [the  person's place of residence].   She                                                               
agreed  with the  need for  medical expertise  on the  board, and                                                               
that there  should be  no controversion  of benefits  until there                                                               
has  been a  fair hearing.    She spoke  in favor  of having  the                                                               
examinations   be  independent,   rather  than   copying  another                                                               
examiner's report.                                                                                                              
                                                                                                                                
Number 2035                                                                                                                     
                                                                                                                                
GEORGE   RODRIGUES  testified   via  teleconference,   suggesting                                                               
injured workers  should have the  right to  be heard in  a timely                                                               
manner.  In  his case, the insurance company spent  more money on                                                               
travel, motels, and  cars than on examinations.   He added, "They                                                               
spent  more  time  sitting  there,  trying  to  catch  me  saying                                                               
something wrong, than they did  worrying about me getting well to                                                               
get back  to work."   Mr. Rodrigues reported that  his evaluation                                                               
had stated  that he  had a pre-existing  injury, with  nothing to                                                               
back  that  claim;  they  never  asked for  his  X-rays  or  MRIs                                                               
[magnetic resonance imaging], and then had  told him he had to go                                                               
back  to work.   Ten  days  later, he'd  received a  cancellation                                                               
letter in the mail.                                                                                                             
                                                                                                                                
Number 2111                                                                                                                     
                                                                                                                                
DAVID TWEDEN  testified via teleconference.   He informed members                                                               
that his first  medical evaluation was performed by  a doctor who                                                               
lives in  Oregon and was flown  to Alaska to administer  it.  The                                                               
doctor who  performed the second evaluation  rated his permanent,                                                               
partial  impairment  at 5  percent.    Mr.  Tweden said  he  then                                                               
visited a chiropractor,  who reported an impairment  rating of 17                                                               
percent -  quite a difference.   Mr. Tweden said he  has had many                                                               
controversions in  his case; it  has been difficult  "just trying                                                               
to survive."   In September,  he went to a  prehearing conference                                                               
and was  told he was no  longer receiving compensation.   He said                                                               
he has had  no source of money since then,  when his compensation                                                               
was controverted.                                                                                                               
                                                                                                                                
Number 2195                                                                                                                     
                                                                                                                                
DIANE TWEDEN  testified via teleconference, saying  she thinks it                                                               
is  a crime  how injured  workers are  treated.   She said  there                                                               
needs to  be a  commission that helps  them, rather  than hurting                                                               
them further.   She said her husband has been  injured twice.  He                                                               
was  able  to recover  from  the  first injury  through  physical                                                               
therapy until he  was healed.  After the  second injury, however,                                                               
the physical  therapy was  stopped, without  notification, before                                                               
he  was  healed; now  he  suffers  daily, ongoing  pain,  without                                                               
medical treatment.  If he  could have completed physical therapy,                                                               
she believes  it is possible  her husband  could be back  at work                                                               
today.  She  suggested there "needs to be a  commission of people                                                               
that are for  the injured workers, not for the  money involved in                                                               
protecting the doctors and the rest of the bureaucracy."                                                                        
                                                                                                                                
Number 2240                                                                                                                     
                                                                                                                                
CHAIR  MURKOWSKI  asked  testifiers   to  limit  remarks  to  the                                                               
legislation,  rather  than   addressing  problems  with  workers'                                                               
compensation as a whole.                                                                                                        
                                                                                                                                
FLOYD  L. OBERG  testified  via teleconference.    He said  there                                                               
needs to be more protection for  injured workers.  He said he has                                                               
been "in  this system ... for  about nine months, and  I've about                                                               
had all of it I can handle."   He added, "They put me on welfare,                                                               
they put  me on social  security, and  all because of  neglect of                                                               
some of  these [higher-ups] up  there, and I expect  something to                                                               
be  done. ...   Get  out  and do  your jobs,  for Christ's  sake.                                                               
Thank you.  I've had enough."                                                                                                   
                                                                                                                                
Number 2290                                                                                                                     
                                                                                                                                
BARBARA WILLIAMS, Alaska Injured  Workers Alliance, testified via                                                               
teleconference.  She said when  someone has to see an independent                                                               
medical  evaluator,  there  is   no  legal  requirement  for  the                                                               
evaluator to even look at [the  worker's] records.  The only time                                                               
there is  such a legal requirement  is when the board  appoints a                                                               
second independent medical evaluator.   Most of the time, workers                                                               
don't  have the  proper information  to make  informed decisions.                                                               
The pertinent information from  the independent medical evaluator                                                               
would  allow the  worker to  ask  the board  for a  chance for  a                                                               
second independent  medical evaluator - but  most injured workers                                                               
aren't aware  that this  information is available  to them.   The                                                               
injured  workers  don't   have  anyplace  to  go   to  seek  this                                                               
information  because the  board  doesn't even  sell the  rulebook                                                               
that contains this vital information.                                                                                           
                                                                                                                                
MS.  WILLIAMS   suggested  HB  274  should   be  strengthened  by                                                               
requiring   independent  medical   evaluators  to   review  "our"                                                               
records.  She stated that  after researching over 250 cases, "we"                                                               
find that  insurance companies  are summarizing  injured workers'                                                               
records and sending those to the  evaluators.  Again, there is no                                                               
legal requirement  for the  evaluators to  review the  records to                                                               
make  their decision.   She  said, "Workers  are subject  to this                                                               
every 60 days."                                                                                                                 
                                                                                                                                
MS. WILLIAMS noted that when workers  are unable to appear at the                                                               
hearing   because    of   extenuating   circumstances,    it   is                                                               
automatically considered  a controversion of benefits;  she cited                                                               
examples.    Therefore, she  said  having  a hearing  before  the                                                               
controversion  is a  great  idea.   "However,  workers that  need                                                               
immediate medical  care never  get it,"  she added,  pointing out                                                               
that  Ms. Beckman  has a  terminal illness  that could  have been                                                               
avoided,  had   the  insurer  used  the   proper  information  to                                                               
determine what was  wrong with her.  She  emphasized that nothing                                                               
in the bill says anyone will read [an injured worker's] records.                                                                
                                                                                                                                
Number 2366                                                                                                                     
                                                                                                                                
MS.  WILLIAMS  said  not  one   person  on  the  Alaska  Workers'                                                               
Compensation  Board has  any medical  expertise  to be  rendering                                                               
decisions on medical emergencies on  behalf of workers.  She said                                                               
workers are denied  care every day.  This  offers injured workers                                                               
little  protection.    When  workers  [are  referred  to  doctors                                                               
outside  of  Alaska]  there  is no  guarantee  that  the  medical                                                               
evaluator has the proper credentials,  has been sanctioned, or is                                                               
currently under sanction.                                                                                                       
                                                                                                                                
MS.  WILLIAMS offered  that  the  current licensing  restrictions                                                               
don't  adequately address  the  situation  of medical  evaluators                                                               
coming  into  Alaska.   She  suggested  these medical  evaluators                                                               
should   be  licensed   with  the   Department  of   Occupational                                                               
Licensing.   She added, "These  people are also  taking temporary                                                               
permits  that are  meant  to be  given to  people  in a  one-time                                                               
fashion  when there's  emergencies  for  physicians, and  they're                                                               
using these temporary  permits to come and go  and determine what                                                               
medical treatment we can get."                                                                                                  
                                                                                                                                
MS. WILLIAMS concluded  by saying she appreciates  the members of                                                               
the committee  who are attentive,  but that some members  need to                                                               
be  more  attentive  to  workers'  needs.    She  emphasized  the                                                               
seriousness  when  people  have  to seek  public  assistance  and                                                               
social security [benefits]  just to survive.  She  asked that the                                                               
committee strengthen the legislation to protect the workers.                                                                    
                                                                                                                                
Number 2472                                                                                                                     
                                                                                                                                
MARIA RAMIREZ  testified via teleconference on  behalf of [George                                                               
Ramirez], who'd had an accident.                                                                                                
                                                                                                                                
TAPE 02-10, SIDE B                                                                                                              
Number 2480                                                                                                                     
                                                                                                                                
MS. RAMIREZ discussed  the lack of information in the  case.  She                                                               
noted  how difficult  it had  been  for [Mr.  Ramirez], and  that                                                               
they'd been told to drop the case.                                                                                              
                                                                                                                                
Number 2439                                                                                                                     
                                                                                                                                
TINA EDMONDSON testified via  teleconference, mentioning a couple                                                               
of different independent  medical evaluations.  In  one case, the                                                               
insurance adjuster set  up [an appointment] for her  to travel to                                                               
Oregon for  an independent medical  evaluation; however,  she was                                                               
unable to fly  at the time.  The insurance  adjuster had informed                                                               
Ms. Edmondson that the [insurance  company] had to pay the doctor                                                               
$1,500 regardless,  and therefore the insurance  company sent Ms.                                                               
Edmondson's records for  review.  Upon review  of Ms. Edmondson's                                                               
records, the physician  sent a letter [to  the insurance company]                                                               
stating that  Ms. Edmondson  was able  to work,  was malingering,                                                               
and was in  it for secondary gain.  However,  Ms. Edmondson said,                                                               
that wasn't true.                                                                                                               
                                                                                                                                
MS. EDMONDSON  explained that  her case has  been going  on since                                                               
1998.   She expressed  disbelief that a  physician could  write a                                                               
medical summary  without ever actually physically  examining her.                                                               
She  informed the  committee that  she is  on assistance  now and                                                               
living  in  low-income  housing,  and therefore  [how  could  one                                                               
construe  that  she is  doing  this  for  secondary gain].    Ms.                                                               
Edmondson  said  she  doesn't  believe  in  [using]  out-of-state                                                               
physicians who  are being  paid by the  insurance adjuster.   She                                                               
charged that the physician will  [write the reports to favor] the                                                               
insurance  adjuster  who pays  the  physician.   Injured  workers                                                               
don't stand a chance, she concluded.                                                                                            
                                                                                                                                
Number 2308                                                                                                                     
                                                                                                                                
DEBBIE PIEPLOW testified via teleconference,  noting that she was                                                               
testifying  because  doctors  aren't  required to  refer  to  the                                                               
medical  [information]  brought  to   them.    She  informed  the                                                               
committee that  her case was  controverted in February 2001.   In                                                               
November or  December before that,  her physician had  wanted her                                                               
to go to  the Environmental Health Center (ph)  in Dallas, Texas,                                                               
in  order to  be tested  and treated  for exposure  to chemicals.                                                               
After the treatment, she would have  been back to work.  However,                                                               
the insurance  delayed until the first  60 days had passed.   The                                                               
insurance  company said  it had  physicians in  Portland, Oregon,                                                               
[who  were qualified  the same  as those  in Dallas,  Texas], and                                                               
therefore she went to Portland.                                                                                                 
                                                                                                                                
MS. PIEPLOW  explained that during  a pulmonary  examination, she                                                               
was exposed  to gases, and  the physicians wouldn't  explain what                                                               
they were doing to  her.  In the end, she had  to fight to obtain                                                               
the  name of  the  gas to  which  she was  exposed.   After  that                                                               
exposure, Ms. Pieplow was very ill.   She noted that before going                                                               
to Portland,  she was on  oxygen, which she continues  today, and                                                               
was taking  histamine shots up to  eight times a day  in order to                                                               
keep breathing.   This is because the antigens,  which would have                                                               
helped her to get over this,  were mixed with preservatives.  The                                                               
preservative glycerin  sent her into  shock, and thus she  had no                                                               
alternative but to go out of state.                                                                                             
                                                                                                                                
MS.  PIEPLOW  continued, saying  she  lost  her home  and  became                                                               
homeless  for five  months.   Just  recently she  got into  [low-                                                               
income] housing and  applied for social security.   If it weren't                                                               
for  food stamps,  she would  have  no food.   She  characterized                                                               
reducing  someone to  this  state of  poverty as  a  crime.   Ms.                                                               
Pieplow  stressed  that   these  independent  medical  evaluators                                                               
aren't  independent whatsoever,  but  are paid  by the  insurance                                                               
companies.  She noted that  she'd brought her medical information                                                               
[to the meeting with the  independent medical examiner], but [the                                                               
examiner] had said she hadn't,  and the evaluation was based upon                                                               
the information available before the date of the exam.                                                                          
                                                                                                                                
Number 2134                                                                                                                     
                                                                                                                                
AMANDA PIEPLOW  testified via teleconference.   She  informed the                                                               
committee  that she'd  been examined  by  an independent  medical                                                               
examiner who'd  refused to review  records sent to him  by anyone                                                               
other than her employer's insurance  company, which was trying to                                                               
controvert  her   case.    This  examiner   wouldn't  review  her                                                               
physician's report  that discussed how  injured she was  and that                                                               
she was unable  to return to work  at the moment.   After doing a                                                               
cursory examination  - and  asking her to  walk across  the room,                                                               
which she did  - the examiner then pronounced that  she was cured                                                               
and  could return  to full-time  work.   This was  not true,  Ms.                                                               
Pieplow said, having been severely  injured by a horse and unable                                                               
to stand  or sit for  long periods.   Injured workers need  to be                                                               
protected against these kinds of incidents, she concluded.                                                                      
                                                                                                                                
Number 2048                                                                                                                     
                                                                                                                                
CHAIR MURKOWSKI announced that public  testimony was concluded on                                                               
HB 274.   She asked Representative Hayes whether  Ms. Reardon had                                                               
answered his question regarding how a physician is licensed.                                                                    
                                                                                                                                
REPRESENTATIVE  HAYES   said  yes,   noting  that  he   even  had                                                               
documentation regarding that.                                                                                                   
                                                                                                                                
CHAIR  MURKOWSKI  recalled  mention   that  the  Alaska  Workers'                                                               
Compensation Board doesn't have  a member with medical expertise.                                                               
She asked whether that was the case.                                                                                            
                                                                                                                                
MR.  GROSSI  explained  that statute  requires  that  the  Alaska                                                               
Workers'  Compensation  Board  consist  of  a  labor  member,  an                                                               
industry member, a designee of  the commissioner [of the DLWD] or                                                               
the commissioner.   He pointed out, however, that there  is a lot                                                               
of  medical expertise  involved, because  of doctors'  testimony,                                                               
reports, and depositions.  A  statutory change would be necessary                                                               
[to  require  a member  of  the  board with  medical  expertise].                                                               
Furthermore, it may  be problematic to attract  physicians to the                                                               
board because  it is basically  a volunteer position, with  a $50                                                               
stipend.  In answer to a  question by Chair Murkowski, Mr. Grossi                                                               
said  there  are currently  12  members  on the  board;  however,                                                               
Representative  Harris has  sponsored  legislation that  requests                                                               
two more members.                                                                                                               
                                                                                                                                
Number 1957                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG  recalled that  most of these  panels are                                                               
three-member panels.   He surmised that it would  be expensive to                                                               
obtain medically trained individuals.                                                                                           
                                                                                                                                
MR.  GROSSI agreed.   Even  with the  current composition  of the                                                               
board, it  has been  difficult to  obtain [volunteers]  to serve,                                                               
because a  hearing requires  an entire  day.   Whether physicians                                                               
would  have  the  time  to  serve   on  such  a  board  would  be                                                               
questionable.  "But, again, we do  have lots of expertise, as far                                                               
as specific cases," he concluded.                                                                                               
                                                                                                                                
Number 1910                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG pointed out that  two years ago there was                                                               
a major rewriting  of the workers' compensation law  by the House                                                               
Labor and  Commerce Standing Committee,  which he chaired  at the                                                               
time.  He  recalled discussion regarding rules  of procedures and                                                               
dissemination.   He  asked whether  something [is  given] to  the                                                               
general public so that they understand their rights.                                                                            
                                                                                                                                
MR.  GROSSI answered  that [DLWD's]  statutes  are published  and                                                               
available for purchase.   Also, DLWD has  a workers' compensation                                                               
booklet that is sent to all injured workers.                                                                                    
                                                                                                                                
REPRESENTATIVE ROKEBERG expressed  concern with today's testimony                                                               
indicating  that people  hadn't  understood their  rights or  the                                                               
procedures  and  deadlines.     He  surmised  that  the  workers'                                                               
compensation booklet attempts to address such questions.                                                                        
                                                                                                                                
MR. GROSSI  replied yes, noting  that the division office  can be                                                               
contacted  as well.   In  further response,  Mr. Grossi  affirmed                                                               
that the  booklet was updated  after the  recent rewrite.   It is                                                               
updated whenever there is a change.                                                                                             
                                                                                                                                
REPRESENTATIVE ROKEBERG  emphasized that the recent  rewriting of                                                               
the law  was significant; the  House Labor and  Commerce Standing                                                               
Committee had  spent countless hours  working on it.   Therefore,                                                               
he took  personal exception to  Ms. Williams'  comment indicating                                                               
[some committee  members] aren't  paying [adequate]  attention to                                                               
the issues of workers.                                                                                                          
                                                                                                                                
MR. GROSSI  agreed there had been  an increase in benefits  and a                                                               
number  of significant  changes.   He pointed  out that  with any                                                               
given legislation, it is impossible  to make all the changes that                                                               
people desire.  Furthermore, changes  seldom affect the claims of                                                               
those who were injured prior to the changes.                                                                                    
                                                                                                                                
Number 1755                                                                                                                     
                                                                                                                                
REPRESENTATIVE COGHILL  wrapped up  by pointing  out that  HB 274                                                               
will  allow  an  expedited  workers' compensation  hearing.    He                                                               
announced that he  was open to discussing a change  from "may" to                                                               
"shall"  on  page  2,  line  24.    "Once  the  board  makes  the                                                               
determination, then they  can make a directive," he  added.  "And                                                               
that's really  what the language  would be  saying."  He  said he                                                               
feels  that might  shore up  some concerns  expressed in  today's                                                               
testimony.                                                                                                                      
                                                                                                                                
CHAIR  MURKOWSKI  asked  whether  changing it  to  "shall"  would                                                               
impact the ability  to process the claims and result  in a fiscal                                                               
note for the bill [because of lack of flexibility].                                                                             
                                                                                                                                
REPRESENTATIVE  COGHILL   acknowledged  that  the   change  might                                                               
require  a fiscal  note.   He noted  that the  language was  made                                                               
permissive in  order to avoid "wading  out into that."   "I don't                                                               
think we've studied the numbers,  though, or the ramifications of                                                               
it," he added.                                                                                                                  
                                                                                                                                
MR. GROSSI explained  that the determination would  still have to                                                               
be  made that  the individual  may be  adversely impacted  by not                                                               
receiving the treatment.  He  said, "If these determinations were                                                               
made  in a  significant  number, obviously,  it  would have  some                                                               
impact.   But I don't  think that that's  likely to be  the case,                                                               
although I can't  say with absolute with certainty."   Mr. Grossi                                                               
surmised that  if [Representative  Harris's] legislation  were to                                                               
pass, there  would be more  board members to hold  more hearings,                                                               
and thus  there wouldn't likely  be a  problem.  One  big problem                                                               
with hearings is obtaining the  lay members to hear them, whereas                                                               
the department people are [working] every day [anyway].                                                                         
                                                                                                                                
Number 1633                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG  returned  to Mr.  Grossi's  point  that                                                               
everyone feels his/her case is  the most important one.  However,                                                               
he said,  the case could  be made that  any type of  treatment is                                                               
necessary to  avoid physical  harm.  He  indicated the  change to                                                               
"shall"   would   mandate   the  aforementioned,   negating   any                                                               
flexibility regarding an expedited hearing.                                                                                     
                                                                                                                                
MR. GROSSI agreed it would be a possibility.                                                                                    
                                                                                                                                
REPRESENTATIVE  ROKEBERG   added  that  if  he   were  counseling                                                               
someone,  he would  suggest that  the individual  could demand  a                                                               
hearing and that the [department] could hardly refuse.                                                                          
                                                                                                                                
MR. GROSSI  offered his belief that  there would have to  be some                                                               
medical  proof  or evidence.    It  would  be a  "somewhat  legal                                                               
determination."                                                                                                                 
                                                                                                                                
Number 1564                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG asked, "How do you sort that out?"                                                                      
                                                                                                                                
MR. GROSSI answered, "By that type  of a process, ... whether ...                                                               
some operation is needed, and needed  right away - those types of                                                               
considerations."                                                                                                                
                                                                                                                                
REPRESENTATIVE ROKEBERG mentioned  sovereign immunity and getting                                                               
sued by everybody.                                                                                                              
                                                                                                                                
MR. GROSSI  acknowledged that it  could be a problem,  but added,                                                               
"You'd still have to make that determination."                                                                                  
                                                                                                                                
REPRESENTATIVE  ROKEBERG  asked  whether  [the  language  change]                                                               
elevates a person's right to appeal, and whether "may" helps.                                                                   
                                                                                                                                
MR. GROSSI  replied in the  affirmative.  Currently, there  is no                                                               
statutory expedited-hearing authority per  se.  Therefore, HB 274                                                               
does make a significant change.                                                                                                 
                                                                                                                                
Number 1481                                                                                                                     
                                                                                                                                
REPRESENTATIVE CRAWFORD remarked  that HB 274 seems to  go far in                                                               
addressing the  complaints heard today.   He remarked,  "Once the                                                               
board or board's designee has  determined that the claim involves                                                               
an  issue  of  medical  treatment and  an  expedited  hearing  is                                                               
necessary,  I  think it  should  be  'shall' instead  of  'may'."                                                               
Furthermore,  he  said, it  doesn't  appear  it would  cause  the                                                               
department undue harm to change the language.                                                                                   
                                                                                                                                
REPRESENTATIVE  CRAWFORD  announced  that   he  would  offer  the                                                               
foregoing as a conceptual amendment.                                                                                            
                                                                                                                                
REPRESENTATIVE ROKEBERG pointed  out that Representative Crawford                                                               
had  referred   to  the  board,   rather  than   the  individual.                                                               
Representative Rokeberg  said he wouldn't disagree  if it applied                                                               
to  the  board, rather  than  the  individual, with  "may"  being                                                               
applied to the  individual "in a proscriptive way."   He surmised                                                               
that wouldn't seem objectionable to the [department].                                                                           
                                                                                                                                
REPRESENTATIVE COGHILL  responded, "We're talking about  a party,                                                               
the board, or the board's designee."   He explained that [HB 274]                                                               
attempts to  create a line so  that those with an  expedited need                                                               
[get  an   expedited  hearing].    However,   [with  the  "shall"                                                               
language]  everyone  would  [have   the  ability  to  receive  an                                                               
expedited hearing].   In  that situation,  Representative Coghill                                                               
said  he  didn't  believe  people  would  be  served  well.    He                                                               
clarified  that  although  he  was   cautious,  he  was  open  to                                                               
discussion.                                                                                                                     
                                                                                                                                
Number 1366                                                                                                                     
                                                                                                                                
CHAIR MURKOWSKI referred  to the possibility on page  2, line 23,                                                               
of deleting the  language "upon request by a  party".  Therefore,                                                               
it would be just the action  of the board or the board's designee                                                               
[in] recognizing  that it  is an issue  of medical  treatment and                                                               
that an expedited  hearing is necessary.  She  asked whether that                                                               
would  help.    Chair  Murkowski  said  she  saw  [Representative                                                               
Coghill's] point  that [the language  change] could open  this up                                                               
to where it would no longer be workable.                                                                                        
                                                                                                                                
REPRESENTATIVE  ROKEBERG  maintained that  at  the  level of  the                                                               
individual, [the expedited hearing]  would be permissive by using                                                               
"may", while  the action of  the board or board's  designee would                                                               
be mandatory.   Therefore, the expedited hearing  would be within                                                               
reach if the worker had convinced the board of the necessity.                                                                   
                                                                                                                                
MR. GROSSI mentioned  his belief that it's  almost necessary that                                                               
the  party  bring it  to  [the  department's] attention,  because                                                               
without  that, it  might or  might not  reach the  point where  a                                                               
determination is made.                                                                                                          
                                                                                                                                
Number 1252                                                                                                                     
                                                                                                                                
REPRESENTATIVE COGHILL, in  response to Representative Rokeberg's                                                               
suggestion  to  use  permissive  language  in  reference  to  the                                                               
individual  while  using  mandatory  language for  the  board  or                                                               
board's designee,  referred to lines  25-26 [page 2,  Section 2].                                                               
He  said it  isn't  a  mandate, but  surmised  that  it could  be                                                               
mandated  somehow  regarding  the   board  or  board's  designee.                                                               
However, he  inquired as to  how much judgment  [the legislature]                                                               
wants  to  mandate  for  the  board  or  board's  designee.    He                                                               
questioned  how   far  he   wanted  to   delve  in   this  arena.                                                               
Furthermore, "we"  can never do  enough in  workers' compensation                                                               
issues.  He reiterated the need  to at least create an avenue for                                                               
an  expedited  hearing,  when  an individual  brings  it  to  the                                                               
board's attention.   Frankly, he said, too  many directives would                                                               
seem to  tilt [the  situation].   He then  announced that  he had                                                               
changed his mind on changing ["may"] to "shall".                                                                                
                                                                                                                                
CHAIR MURKOWSKI noted that Representative  Crawford had put forth                                                               
a conceptual amendment earlier.                                                                                                 
                                                                                                                                
REPRESENTATIVE CRAWFORD said  he was ready to  amend it according                                                               
to Representative Rokeberg's clarification.                                                                                     
                                                                                                                                
REPRESENTATIVE COGHILL turned to page  2, line 26, and noted that                                                               
it  says "necessary  to avoid  physical  harm".   He related  his                                                               
belief that  there is a criterion  before the board and  that the                                                               
individual has  access to the  board.  Therefore, he  didn't know                                                               
whether [the language] needed to go further.                                                                                    
                                                                                                                                
Number 1120                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG  remarked that the language  is confusing                                                               
because  he  reads it  that  the  individual, board,  or  board's                                                               
designee  may  schedule  [an   expedited  hearing];  however,  he                                                               
believes  the drafter  really  meant that  the  board or  board's                                                               
designee  would schedule  [an expedited  hearing].   Still, there                                                               
has  to  be  a  request.   He  concluded  that  the  language  is                                                               
defective.   The  individual's  request  alone shouldn't  mandate                                                               
that [an  expedited hearing] be  scheduled, because the  board or                                                               
board's designee  should review  it and  determine whether  to do                                                               
it.   Representative  Rokeberg suggested  a conceptual  amendment                                                               
could be put forth with the committee aide's assistance.                                                                        
                                                                                                                                
CHAIR  MURKOWSKI  suggested  that Representative  Rokeberg  could                                                               
also chair a subcommittee.                                                                                                      
                                                                                                                                
Number 1036                                                                                                                     
                                                                                                                                
REPRESENTATIVE  COGHILL acknowledged  that  perhaps the  language                                                               
isn't  as artful  as it  could  be.   However, page  2, line  23,                                                               
specifies that  the request  is made, and  the board  is provided                                                               
the discretion  to have [an  expedited hearing], if the  board or                                                               
board's designee  so determines, in  lines 24-25.   Therefore, he                                                               
felt that the language was adequate.                                                                                            
                                                                                                                                
REPRESENTATIVE ROKEBERG said, "Well, maybe you're right."                                                                       
                                                                                                                                
[The conceptual amendment wasn't pursued further.]                                                                              
                                                                                                                                
Number 0985                                                                                                                     
                                                                                                                                
REPRESENTATIVE  HAYES  moved  to  report CSHB  274  [version  22-                                                               
LS0983\J,  Ford,   2/4/02]  out  of  committee   with  individual                                                               
recommendations  and the  accompanying zero  fiscal note.   There                                                               
being  no objection,  CSHB 274(L&C)  was moved  out of  the House                                                               
Labor and Commerce Standing Committee.                                                                                          
                                                                                                                                

Document Name Date/Time Subjects