Legislature(2007 - 2008)BELTZ 211
04/12/2007 01:30 PM Senate LABOR & COMMERCE
Audio | Topic |
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Start | |
SB115 | |
HB34 | |
SB117 | |
Affordable Housing Issues | |
Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
= | SB 117 | ||
= | SB 124 | ||
= | SB 115 | ||
= | HB 34 | ||
SB 117-WORKERS' COMP: DISEASE PRESUMPTION 1:38:42 PM CHAIR ELLIS announced SB 117 to be up for consideration. SENATOR FRENCH, sponsor of SB 117, introduced Andy Moderow, his staff, who was also available to comment on this bill. He then read the sponsor statement for the record. It said SB 117 was brought to them because each year citizens throughout Alaska rely on professional and volunteer firefighters to come to their assistance in times of emergency. They work on everyone's behalf to save lives and property often at great personal risk. In doing so, they are exposed to toxic chemicals like benzene and carcinogenic substances such as solvents, dyes, asbestos and high levels of carbon monoxide or other substances that can affect the heart and lungs. SB 117 would create a presumption in the Workers' Compensation Program that a firefighter with at least seven years on the job who has passed health screen exams earlier in their careers will be provided with benefits if they contract certain forms of pulmonary or heart disease or cancers - as it will be presumed to be a result of their occupation. This presumption is restricted to diseases known to occur with greater frequency among firefighters and the date by which a claim has to be made will also capped at 60 months from the firefighter's last date of employment. Forty-one states currently provide some form of presumptive coverage for firefighters. Although arguments have been made that this coverage will be prohibitively expensive, the fact is that this has not been the case elsewhere. For instance, the State of California has over 30,000 paid firefighters and more than 30,000 volunteers, but the addition of cancer presumptive benefits has had "no impact" on the actuarial assumptions for its retirement system. Similarly, in Illinois, in the six years following provision of presumption of cancer for firefighters, claims were actually 8.3 percent lower than in the six years prior to passage. SENATOR FRENCH summarized that firefighters place their lives at risk on behalf of us all and in return, they should be able to use Workers' Comp benefits for illnesses they incur as a result of the work they do. 1:41:14 PM SENATOR BUNDE asked how early a screening exam would be in the career of a firefighter. SENATOR FRENCH replied that those particularities can be described in regulation so they can be taken up by people with more intimate knowledge in this area. 1:42:01 PM SENATOR STEVENS asked what would happen after the 60-month cut- off period for filing a claim. SENATOR FRENCH replied the idea is after you have left your job you should have workers' compensation coverage for a period of time and the person paying for the policy should have some knowledge of when he's off the hook. 1:43:10 PM MARK DRYGAS, President, Alaska Professional Firefighters Association, supported SB 117 stating that numerous studies have shown increased risk of cancer and cardiovascular and infectious diseases amongst fire fighters. 1:44:49 PM He reaffirmed that many states now have some presumption of disability. In the first six years Oklahoma had cancer legislation, it paid 22 claims statewide or 6 percent of its 378 disability claims. This averages to four cancer claims per year or .03 percent at an average cost to the pension system of $10,400 per total cancer claim. He said Oklahoma has 3400 career firefighters and 9000 volunteers. 1:45:34 PM MR. DRYGAS said Nevada paid three cancer claims in the first four years the legislation was enacted. None of the cases included lung cancer which is covered under separate litigation. Nevada has 1790 career firefighters and 2200 volunteers. This averages less than one claim per year for a .02 percent rate of cancer claims. He said the numbers from Rhode Island show a rate of .02 percent, which seems to be the common rate. Florida has a rate of .034 percent. California has the highest rate at .07 percent. He estimated that Alaska would have a rate around one person every three years. The only time this will come into play is when a person has a life-threatening disease. MR. DRYGAS said this coverage is very important to firefighters because they take the risk for everyone. The problem has to be a pretty bad before it comes into play and it's hard to scam it. He pointed out that OSHA doesn't regulate what is in someone's garage and all hazards aren't known at the time they are responded to. Toxic accumulations of them are also a serious issue. SENATOR STEVENS asked if volunteer firefighters are covered under the Workers' Compensation program and how their seven years is figured out. MR. DRYGAS answered that his understanding is that volunteer firefighters are covered under state workers' compensation law, but he couldn't really speak for them. Seven years on the job would have to be defined later in regulation and most volunteers don't serve that long. 1:50:22 PM DOMINICK LEZANO, President, Fairbanks Firefighters Association, said he is a firefighter paramedic and supported Mr. Drygas' testimony. It is very important for firefighters, both professional and volunteer, to know they have coverage as they face unknowns every day. The basis of presumption saves the family heartache and difficulty when a firefighter contracts a cancer from what he does in his job. 1:53:27 PM ROD HARRIS, firefighter with the City of Anchorage, supported SB 117 and said it had been adopted by 41 other states. He said this coverage will not increase the number of claims, but it will change their presumptive status. If a firefighter gets sick, he will file a claim regardless of whether this legislation passes or not. This defines the process and reduces the liability to the workers' compensation system and will save the state from having multi-million dollar litigation. He said that every day firefighters respond to calls when they will be exposed to both known and unknown hazards. He noted that the fire chiefs also support this legislation, because most fire departments recognize the risks. 1:56:18 PM ERIC TULAK, firefighter with Anchorage Fire Department, said he would first answer Senator Bunde's question about when the medical exam would happen and how long it would be good for. At this point, the bill just says it will be at some point during the career that shows them to be disease-free. Specifics still need to be addressed. He explained that Anchorage firefighters are lucky enough to have annual physicals. Three of its older individuals have had cancer and all three are in remission. They were shown to be cancer-free upon their initial exam. In answer to Senator Stevens' question about what happens after five years, Mr. Tulak said when the bill was written a disease was considered to no longer be presumptive after five years. The five years is based upon other state and Canadian province law and upon latency periods of diseases listed in the bill. He explained that when the bill was introduced last session as HB 31, it had some definitions for volunteer firefighters and their training and time on the job is recorded. 1:58:13 PM MR. TULAK said he would now go to his testimony and talk about what is called the Healthy Worker Effect that compares different groups and control groups in any epidemiological study. If they are not well matched, the results aren't as meaningful. For that reason groups are matched for age, sex and race, and lifestyle factors like smoking and alcohol consumption. The Healthy Worker Effect is accentuated with the use of firefighters who are extremely healthy individuals for the most part often being compared to policemen. The most relevant studies show that they are getting these cancers and diseases at a higher incidence than other groups. For example, firefighters get brain cancer at an 88 percent higher rate than police officers; 111 percent more frequently for bladder cancer; 227 percent more frequently for non-Hodgins lymphoma; and 270 percent more frequently for leukemia. 1:59:45 PM He also wanted to address claims that this bill would increase the number of claims filed, but he asked if that means there are first-responders suffering from these diseases who already aren't making these claims. He also thought it ironic that people think there would be frivolous claims. 2:01:23 PM JEFF BRIGGS, Alaska Professional Firefighters Association, said he is also an Anchorage firefighter. He stated that thousands of people around the state every year are touched by first responders by merely dialing 911 and this is a small token of appreciation for them. He said the bill has been written in a fiscally responsible way and for example, the state of Rhode Island paid six claims in the first eight years. It has 2200 career firefighters and 2800 volunteers. In Alaska, that would equate to about one claim every four years. 2:04:08 PM JEFF BUSH, Executive Director, Alaska Public Entity Insurance (APEI), said APEI represents schools and cities in Alaska and insures 18 municipalities; approximately 150 personnel would be affected by this bill. He opposed the bill saying the workers' compensation system is already designed to cover the diseases that are listed. It now requires only a minimal amount of evidence of a link between the occupation and the disease for coverage to attach. There is no doubt this bill will cost the state and municipalities money and that some firefighters will develop these diseases without the exposure. This bill will complicate appeals because it creates issues that will need litigation. It requires medical screenings and the 200 municipalities with volunteers will have to pay for their screenings. The cost is just not worth it. 2:07:29 PM SENATOR BUNDE asked if municipalities pay for their volunteer firefighters' workers' compensation. MR. BUSH replied they do and if there is a claim they are compensated at the average rate of the position they serve in. 2:07:54 PM SENATOR STEVENS asked if certain cancers can be shown to have some connection with on-the-job exposure. SENATOR FRENCH replied no, but this bill sets up a presumption that the disease was caused through work. If the insurer could demonstrate a person smoked two packs a day and engaged in other risky lifestyle behaviors that would more readily account for the disease, the insurer would win and a firefighter would not be covered. SENATOR BUNDE asked if this measure would apply to retired firefighters as well, giving them coverage under both workers' compensation and retirement. He also wanted to hear from the Division of Insurance on insurance rates. He also saw the need to flesh out how many physicals one would actually have to take and to investigate any presently unknown additional costs - because everyone is saying firefighters have a higher rate of disease. 2:11:25 PM CHAIR ELLIS said those were all good points and he thanked people for their testimony and the firefighters for their public service. He said SB 117 would be held over.
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