Legislature(2005 - 2006)CAPITOL 17

03/04/2005 03:15 PM House LABOR & COMMERCE


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 31 WORKERS' COMP: ILLNESS PRESUMPTION TELECONFERENCED
Moved Out of Committee
+= HB 33 EFFECT OF REGULATIONS ON SMALL BUSINESSES TELECONFERENCED
Heard & Held
+= HB 7 UNEMPLOYMENT COMPENSATION BENEFITS TELECONFERENCED
Scheduled But Not Heard
Bills Previously Heard/Scheduled
HB  31-WORKERS' COMP: DISEASE PRESUMPTION                                                                                     
                                                                                                                                
CHAIR ANDERSON announced  that the first order  of business would                                                               
be HOUSE  BILL NO.  31, "An  Act relating  to the  presumption of                                                               
coverage for  a workers' compensation  claim for disability  as a                                                               
result of certain diseases for certain occupations."                                                                            
                                                                                                                                
CHAIR ANDERSON  pointed out that  there was a  sponsor substitute                                                               
for HB 31.                                                                                                                      
                                                                                                                                
JON  BITTNER,  Staff  to Representative  Anderson,  Alaska  State                                                               
Legislature, noted  that two changes had  been made to HB  31 [by                                                               
the sponsor  substitute].  The  first change was the  addition of                                                               
the words  "notwithstanding AS 23.30.100(a)" which  were added to                                                               
page 2,  line 13.  He  explained that this language  was included                                                               
to address  a concern that  current statutes might  conflict with                                                               
the coverage  for retired fire  fighters.  The second  change was                                                               
on  page 2,  subsection (c),  which was  rewritten to  narrow the                                                               
coverage  for  presumption  regarding blood  borne  pathogens  to                                                               
peace   officers,  emergency   medical   personnel,  and   rescue                                                               
personnel.   He explained, "This  change was made to  address the                                                               
concern  that the  coverage  for blood  borne  pathogens was  too                                                               
broad."                                                                                                                         
                                                                                                                                
REPRESENTATIVE CRAWFORD  referred to  his testimony on  this bill                                                               
at the  previous committee  meeting in which  he spoke  about his                                                               
wife contracting  hepatitis while  working in an  operating room.                                                               
He commented to Chair Anderson:                                                                                                 
                                                                                                                                
     I was  very happy to see  that [in HB 31],  you had the                                                                    
     presumption  for nurses  because I  think that  ... the                                                                    
     first  responders that  you're  talking about,  they're                                                                    
      going to hand those same people with the same blood-                                                                      
      borne pathogens over to the medical personnel.  So I                                                                      
       liked your first bill much better than I like your                                                                       
     substitute.                                                                                                                
                                                                                                                                
CHAIR  ANDERSON responded  that  he recognized  the  need to  add                                                               
[medical personnel],  but the problem  was that soon  every other                                                               
personnel  in the  hospital would  want the  same treatment.   He                                                               
voiced concern  that if  the bill  covered all  medical personnel                                                               
the bill wouldn't pass.                                                                                                         
                                                                                                                                
REPRESENTATIVE  CRAWFORD reiterated  that he  would like  all the                                                               
emergency room nurses to be covered as well.                                                                                    
                                                                                                                                
3:33:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   GUTTENBERG  asked   for  clarification   of  the                                                               
difference between a first responder and a nurse.                                                                               
                                                                                                                                
3:35:08 PM                                                                                                                    
                                                                                                                                
MR. BITTNER replied  that a first responder is defined  as a paid                                                               
employee  of a  first  responder service,  a  rescue service,  an                                                               
ambulance service, or a fire department.                                                                                        
                                                                                                                                
CHAIR ANDERSON explained further that  the intent on page 2, line                                                               
22-29 is  to "encapsulate personnel  who are first  responders in                                                               
an emergency outside of a hospital setting."                                                                                    
                                                                                                                                
3:35:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GUTTENBERG   wondered  whether  the   bill  would                                                               
accomplish the intended goals in the "real world."                                                                              
                                                                                                                                
REPRESENTATIVE  LEDOUX asked,  regarding page  2, line  23-29, if                                                               
volunteer  fire fighters  are generally  included under  workers'                                                               
compensation.                                                                                                                   
                                                                                                                                
MR. BITTNER  answered that under  HB 31, volunteer  fire fighters                                                               
would be covered  in the bill as denoted on  page 2, lines 22-23,                                                               
"applies to fire fighters covered under AS 23.30.243."                                                                          
                                                                                                                                
REBECCA  BOLLING,  R.N.,  President,  Alaska  Nurses  Association                                                               
(AaNA), commented:                                                                                                              
                                                                                                                                
     The original  version of [HB 31]  provides an important                                                                    
     protection  of health  care employees  infected with  a                                                                    
     blood-borne  pathogen   during  the  course   of  their                                                                    
     employment.  What  I'm here to talk to  you today about                                                                    
     is the  sponsor substitute  to this bill,  which limits                                                                    
     the  coverage of  workers' [compensation]  benefits for                                                                    
     blood-borne  pathogens  to  only fire  fighters,  peace                                                                    
     officers, and  emergency responders.   It  deletes this                                                                    
     same coverage for  all health workers. ... It  is as if                                                                    
     the care of  the patient stopped at  the emergency room                                                                    
     door.  I  can assure you that the ...  care of patients                                                                    
     with  blood-borne pathogens  continues  on through  the                                                                    
     emergency  room  door for  many  hours,  days, and  ...                                                                    
     sometimes for  many weeks.  The  reason the presumption                                                                    
     of  coverage is  needed  is that  nurses  have had  the                                                                    
     experience of  being stuck  with a  contaminated needle                                                                    
     for  HIV-positive   patients,  subsequently  converting                                                                    
     from being HIV-negative to  HIV-positive, and then have                                                                    
     their   employers   turn   around  and   hire   private                                                                    
     investigators  to  try  and  prove  that  it  is  their                                                                    
     lifestyle that  caused the  infection, not  their work.                                                                    
     And this is not an isolated [incident].                                                                                    
                                                                                                                                
MS. BOLLING continued:                                                                                                          
                                                                                                                                
     This week,  HB 31  was announced  at a  national nurses                                                                    
     meeting for  the American Nurses Association.   It drew                                                                    
     the  attention  of   the  American  Nurses  Association                                                                    
     national delegates  as well  as our  president, Barbara                                                                    
     Blakeney,  who responded  by stating  that the  sponsor                                                                    
     substitute had the  appearance of being discriminatory,                                                                    
     given  that  health   care  workers  are  predominantly                                                                    
     female.  If the  committee is concerned about potential                                                                    
     impacts to  workers' compensation premiums as  a result                                                                    
     of  this  bill, we  ask  you  to research  how  similar                                                                    
     legislation has  impacted other  states.   For example,                                                                    
     Nevada  passed   a  law  in  2001   that  provides  the                                                                    
     presumption  of blood-borne  pathogens  for all  health                                                                    
     care workers.   In  a preliminary investigation  of the                                                                    
     [workers' compensation] rates in  Nevada, we found that                                                                    
     the  rates had  not gone  up in  the three  years since                                                                    
     this law was  passed.  HB 31, in  its original version,                                                                    
     is good  legislation and good  policy for Alaska.   The                                                                    
     ...  presumptions offered  should  be  afforded to  all                                                                    
     health  care  workers  who face  accident  exposure  to                                                                    
     blood-born pathogens and not just  those on one side of                                                                    
     the emergency room door or the other.                                                                                      
                                                                                                                                
3:42:32 PM                                                                                                                    
                                                                                                                                
DAVID KESTER, Commercial Insurance Broker, Ribelin Lowell                                                                       
Alaska, USA; board member, Workers' Compensation Committee of                                                                   
Alaska (WCCA) commented:                                                                                                        
                                                                                                                                
     My opposition  to [HB  31] stems  around the  fact that                                                                    
     there   already   exists   in   the   Alaska   Workers'                                                                    
     Compensation     Act     adequate    presumption     of                                                                    
     compensability   in   workers'  compensation   once   a                                                                    
     preliminary link has been  established between work and                                                                    
     the condition.  And  thus this legislation is redundant                                                                    
     and  duplicative.   Redundancy  only creates  confusion                                                                    
     within  the [compensation]  system, and  that confusion                                                                    
     in turn  will only  increase costs, and  therefore this                                                                    
     bill is  not needed.   In addition, this bill  could be                                                                    
     construed  to  support  a claim  for  compensation  for                                                                    
     disability  regardless of  whether  there  was a  clear                                                                    
     connection  based on  medical  evidence to  employment.                                                                    
     With  this in  mind,  this bill  has  the potential  to                                                                    
     place a very heavy  financial burden on municipalities,                                                                    
     boroughs, towns,  villages, and the citizens  of Alaska                                                                    
     who  pay   property  taxes   to  support   the  cities,                                                                    
     boroughs, and towns.                                                                                                       
                                                                                                                                
REPRESENTATIVE CRAWFORD  asked Mr. Kester to  explain the phrase,                                                               
"once a  preliminary link has  been established between  work and                                                               
the condition"  and referred  to his  wife's case  of contracting                                                               
hepatitis as an example.                                                                                                        
                                                                                                                                
MR.  KESTER  responded  that  such   a  case  would  be  presumed                                                               
compensable until  the employer  proved otherwise; the  burden of                                                               
proof lies on the employer.                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG  commented that there was  an analysis by                                                               
the  National Council  on Compensation  Insurance, Inc  (NCCI) in                                                               
the committee packet that said,  "Due to the retroactive coverage                                                               
provided   by  this   proposal,   the  overall   cost  could   be                                                               
significant.   Since coverage for  such claims may not  have been                                                               
contemplated  in previous  loss  cost  filings, such  retroactive                                                               
costs would be unfunded."  He  asked Mr. Kester to comment on the                                                               
"issue about the retrospectivity and  then the effect on the loss                                                               
cost underwriting."                                                                                                             
                                                                                                                                
MR. KESTER  replied that  he was not  familiar with  the analysis                                                               
but said:                                                                                                                       
                                                                                                                                
     If I understand it  correctly, the National Council has                                                                    
     determined  that  because  there  is  going  to  be  an                                                                    
     increase cost  which is  not currently  contemplated in                                                                    
     the  workers' compensation  rates,  that  that will  in                                                                    
     itself create  a burden  upon the  system ...  and that                                                                    
     one  be able  to get  corrected until  ... these  costs                                                                    
     start entering into the rate-making formula.                                                                               
                                                                                                                                
3:48:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GUTTENBERG  asked  Mr.   Kester,  "Is  your  cost                                                               
savings  based  upon   the  ability  to  more   easily  and  more                                                               
successfully challenge claims?"                                                                                                 
                                                                                                                                
MR. KESTER answered, "I don't believe so."                                                                                      
                                                                                                                                
REPRESENTATIVE  GUTTENBERG  expressed  his  concern  for  "people                                                               
whose  claims have  been denied  and they  simply don't  have the                                                               
ability to aggressively pursue them."                                                                                           
                                                                                                                                
MR. KESTER replied that, under the  existing act, if a person can                                                               
establish  a   connection  between  his/her  condition   and  the                                                               
workplace, the person has met the presumption.                                                                                  
                                                                                                                                
REPRESENTATIVE  ROKEBERG asked  Mr.  Kester to  explain what  the                                                               
appeal rights are under a workers' compensation claim.                                                                          
                                                                                                                                
MR. KESTER  responded that if  a person's claim has  been denied,                                                               
the person can  go before the Alaska  Workers' Compensation Board                                                               
for  a  hearing.   He  explained  that  the hearing  panel  would                                                               
consist of  a hearing officer, a  representative from management,                                                               
and a representative  from labor.  The panel would  hear the case                                                               
and make  a decision.   If the person  is not satisfied  with the                                                               
panel's decision,  the person may  appeal to the  superior court,                                                               
and continue to the supreme court if needed.                                                                                    
                                                                                                                                
3:52:25 PM                                                                                                                    
                                                                                                                                
ERIC  TUOTT,   Alaska  Professional  Fire   Fighters  Association                                                               
(APFFA) stated  that APFFA  has about  500 members  in Anchorage,                                                               
Fairbanks,  and  Juneau,  but   the  bill  would  represent  fire                                                               
fighters   throughout  the   state,   including  volunteer   fire                                                               
fighters.  He said,                                                                                                             
                                                                                                                                
     On  a  day-to-day  basis  we   are  asked  to  go  into                                                                    
     situations where we  do not have any idea  what kind of                                                                    
     things  we're going  into, whether  it's toxins  in the                                                                    
     air, or  if we're going in  to help a patient,  we have                                                                    
     no  idea  of their  previous  medical  history....   We                                                                    
     don't have the  luxury of knowing what  ... we're going                                                                    
     into.  ...  If  we  [were] to  contract  one  of  these                                                                    
     diseases or  one of these  heart conditions  or cancers                                                                    
     down the  road, [the  presumptive disability]  gives us                                                                    
     an   avenue  to   go  back   and   ask  the   [Worker's                                                                    
     Compensation  Board] to  presume that  we got  it as  a                                                                    
     direct  result of  our occupation.   Presently  ... you                                                                    
     can still  go through  the hoops  of workers'  comp but                                                                    
     the sad fact is, in a  lot of our cases, these diseases                                                                    
     are terminal, and we don't have  a whole lot of time to                                                                    
     jump  through these  hoops, asking  for workers'  comp.                                                                    
     One example we have  [at the] Anchorage Fire Department                                                                    
     right  now  is  one  of  our  long  time  veteran  fire                                                                    
     fighters has contracted Hepatitis  C.  He's not exactly                                                                    
     sure where he  got this, but in the course  of 30 years                                                                    
     on the  line, it's almost certain  that he got it  as a                                                                    
     result of  his occupation.   However, his  insurance is                                                                    
     asking at which point in  [his] career ... did [he] get                                                                    
     this ..., and the sad fact  is, we don't know.  Because                                                                    
     he's  not  sure,  ... his  personal  insurance  company                                                                    
     refuses  to  cover him,  saying  it's  a workers'  comp                                                                    
     issue; workers' comp on the  other hand is saying [that                                                                    
     he needs to  prove exactly when he contracted  it.]  So                                                                    
     we're kind of in a catch-22.                                                                                               
                                                                                                                                
MR. TUOTT  commented that there have  been cases in the  Lower 48                                                               
and in  Canada in  which employees have  cancer and  the workers'                                                               
compensation  boards  ask  the  employee  at  which  fire  he/she                                                               
contracted the  disease.  He pointed  out that after 30  years of                                                               
exposure  [to toxins],  the fire  fighters  cannot determine  the                                                               
particular incident that caused their diseases.  He continued:                                                                  
                                                                                                                                
     I've heard a lot of  commentary on the amount of claims                                                                    
     that we  might see [if  HB 31  was passed] ...  but our                                                                    
     associates  in Washington  state, the  Washington State                                                                    
     Council  of Fire  Fighters,  told us  that  in the  two                                                                    
     years   since   they   enacted  this   legislation   in                                                                    
     Washington,  they've had  six total  claims with  about                                                                    
     7,000 fire  fighters being covered.   I'm assuming that                                                                    
     the number of claims that  we will have, because of the                                                                    
     number  of fire  fighters and  the number  of personnel                                                                    
     that's  covered by  this, will  be much  less than  six                                                                    
     claims.                                                                                                                    
                                                                                                                                
3:57:35 PM                                                                                                                    
                                                                                                                                
MR. TUOTT explained that the Hepatitis  C cases are the ones that                                                               
seem  to   last  the   longest  because   most  of   the  cancer,                                                               
respiratory, and  lung diseases are  terminal within months  or a                                                               
few years.   He noted, "We don't have a  whole lot of information                                                               
about  the cost  of  the  cancer because  the  guys  die just  as                                                               
quickly as they get it.  I  guess that's why this is so important                                                               
to us."                                                                                                                         
                                                                                                                                
REPRESENTATIVE  ROKEBERG stated  concern  that  the basic  health                                                               
care should  be taken care of  by a health insurance  policy.  He                                                               
asked Mr. Tuott if the health  care costs are the primary concern                                                               
of  the fire  fighters.   He  mentioned that  another benefit  of                                                               
workers' compensation includes retraining.                                                                                      
                                                                                                                                
MR. TUOTT  replied that most  of the workers'  compensation cases                                                               
he was familiar with involved retirees.   He noted that he hadn't                                                               
seen retraining become an issue.                                                                                                
                                                                                                                                
REPRESENTATIVE GUTTENBERG  asked, "When  your members  are caught                                                               
in a turf war between medical  carrier and the workers' comp, who                                                               
has to pay the bill?"                                                                                                           
                                                                                                                                
MR. TUOTT replied that the employee  pays the bill.  He explained                                                               
that  the  man  with  Hepatitis  C  has  exhausted  his  personal                                                               
savings, and he  can't work every day because he  is sick, so the                                                               
department might terminate him.                                                                                                 
                                                                                                                                
CHAIR ANDERSON closed public testimony.                                                                                         
                                                                                                                                
4:03:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CRAWFORD commented that  he preferred the original                                                               
version of the bill.                                                                                                            
                                                                                                                                
REPRESENTATIVE  ROKEBERG noted  that he  had some  concerns about                                                               
the NCCI analysis regarding the "affectability issue."                                                                          
                                                                                                                                
4:06:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LYNN  moved  to   report  SSHB  31,  labeled  24-                                                               
LS0225\F, out  of committee  with individual  recommendations and                                                               
the accompanying  fiscal notes.   There being no  objection, SSHB
31  was  reported from  the  House  Labor and  Commerce  Standing                                                               
Committee.                                                                                                                      
                                                                                                                                

Document Name Date/Time Subjects