HOUSE BILL NO. 303 "An Act relating to workers' compensation benefits for the rehabilitation and reemployment of injured employees." 3:10:34 PM Representative Wilson MOVED to ADOPT proposed committee substitute for HB 303, Work Draft (30-GH2709\J, Wallace 3/16/18). There being NO OBJECTION, it was so ordered. 3:12:11 PM MARIE MARX, DIRECTOR, WORKER'S COMPENSATION, DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT, there was only one change. It inserted language that the one-year time limit on benefits paid before parties agreed to a training plan. 3:13:32 PM HEIDI DRYGAS, COMMISSIONER, DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT, introduced herself and indicated that Ms. Marx would review the presentation. Ms. Marx introduced the PowerPoint presentation: "Workers' Compensation Reemployment Benefits: HB303,House F inance Committee March 22, 2018" (copy on file). Ms. Marx slide 2: "What is Worker's Compensation?" A system of insurance that protects workers and employ ers from some of the losses caused by on-the-job accide nts and job-related illnesses. Ms. Marx slide 3: "The Grand Bargain." An employer provides prompt, necessary medical and wage loss benefits to an injured worker for a work related injury. In exchange, the injured worker receives limited benefits and gives up the right to sue the employer. Ms. Marx slide 4: "Mission." To ensure the quick, efficient, fair and predictable delivery of indemnity, medical, and vocational rehabilitation benefits to injured workers at a reason able cost to employers Ms. Marx slide 5: "Benefits Provided." ?Medical Care ?Indemnity (Wage Loss) Benefits ?Death Benefits ?Reemployment (Retraining) Benefits Ms. Marx reviewed slide 6: "Reemployment Benefits." Intended to return an injured worker to work when the worker cannot return to the job of injury or to jobs for which the worker has relevant training or experien ce. Ms. Marx moved to slide 11: "Alaska Reemployment Benefits Flow Chart: Current Law." She stressed that the bill did not address instances where an injured worker returned to work and received medical care. The retraining benefits were related to situations where an injured worker was off work for at least 90 consecutive days, and a doctor opined that they could not return to their job of injury or other relevant jobs. 3:15:23 PM Ms. Marx explained that the bill was introduced because of current challenges. She reviewed a list of challenges on slide 7: "Current Challenges." She read the slide: ?Mandatory reemployment benefits eligibility evaluations ?Maximum plan cost of $13,300 ?Retraining plans focus on quickest return to work option, regardless of worker's interest in that vocational goal ?Declining pool of rehabilitation specialists ?No rehabilitation specialist fee schedule Ms. Marx reviewed the benefits of HB 303 on slide 8: "HB 303." She read the slide: ?Improves the delivery of reemployment benefits to injured workers ?Provides eligible employees with more choices in reemployment goals and plans ?Encourages injured employees' early return to work ?Helps employers control costs 3:17:55 PM Representative Guttenberg queried the number of individuals who were hurt on the job and not eligible. Ms. Marx explained that one of the provisions of the bill would no longer permit an injured worker to settle reemployment benefits with their employer. She stated that the following slides showed the statistics about the policy call. Ms. Marx pointed to slide 9: "Reemployment Benefits Eligibility Statistics FY 17." ?564injured workers were referred for a reemployment benefits eligibility evaluation ?148injured workers were determined eligible for reemployment benefits ?14injured workers completed reemployment plans Ms. Marx turned to slide 10: "Reemployment Benefits Settlement Statistics FY 17." 164injured workers settled reemployment benefits 48 of those injured workers settled reemployment benefits before an eligibility determination was made 80 of those injured workers settled reemployment benefits before completing a retraining plan 36 of those injured workers settled reemployment benefits after being found ineligible for benefit 3:22:00 PM Representative Guttenberg asked about the change. He wanted to understand that instead of the money going to the individual it would go to the school. He noted that much of the controversy was that the injured worker needed money to pay their mortgages. The person took the benefit money but did not use the money for its intended use. . Ms. Marx explained that it allowed an injury worker to receive the benefit. Representative Guttenberg wanted to confirm that the lump sum would not be paid to an individual. 3:26:08 PM Co-Chair Foster OPENED Public Testimony. 3:26:59 PM KAYLA KADE, SELF, ANCHORAGE (via teleconference), was a vocational rehabilitation specialist. She did not agree with some of the current regulations in place. She did not agree with paying an individual lump sum. 3:31:04 PM DEBBIE EVEN, SELF, ANCHORAGE (via teleconference), spoke in opposition of the bill. She disagreed with the provision that did not allow for a lump sum to be distributed. Representative Wilson asked if Ms. Even would getting a sum of money plus help with schooling. Ms. Evan decided to settle with Worker's Compensation because of the time frame. 3:33:05 PM CYNTHIA BRADLEY, SELF, ANCHORAGE (via teleconference), opposed the legislation. She was injured on the job at the end of 2011. She settled her claim. She disagreed with the statistic provided by the department. She received a lump sum settlement. She indicated she had been making $50 per hour at the job where she was injured. She was trained for a job where she only made $18. 3:37:25 PM GRETCHEN CUSACK, ALASKA INTEGRATED CARE ACTIONS, EAGLE RIVER (via teleconference), opposed HB 303. She relayed that there were many misconceptions. She provided some of her background and was well-versed in the field. She appreciated a couple of the changes. Co-Chair Foster encouraged additional testimony. 3:44:22 PM Representative Wilson asked how much it took for a worker to have a plan made up and to follow through to succession. Ms. Cusack thought it would be difficult to say because of several factors. Plans could range from $3000 to $20,000. A person needed to be medically stable. She asked the committee to be aware of the complexity of each case. 3:46:05 PM Representative Guttenberg asked whether all rehabilitation specialists were the same. He asked how to set the rates. He wondered if it was by plan or qualifications. Commissioner Drygas responded that the specialists were required to have master's degrees. She stated that the department could receive different reports from different specialists. Ms. Marx responded that one of the things the system struggles with was that a specialist might not meet the statutory requirement. Ultimately both would reach plans within the statutory requirements. Representative Guttenberg wondered whether the payment was because of the billed appointments. Ms. Marx responded in the affirmative. 3:50:50 PM GREG WEAVER, SELF, KNIK (via teleconference), indicated he had been an injured worker. He provided a background of his injury. He spoke about a huge black hole in Worker's Compensation. He provided details about his experience. He continued to provide information about is personal experience. He wanted people in Alaska that were injured on the job to be treated fairly. Co-Chair Foster CLOSED Public Testimony. Co-Chair Foster relayed that amendments were due by Friday, March 30, 2018 at 5:00 PM. Representative Wilson wondered whether there could be a delay in the amendment deadline, because she did not fully understand the legislation. Co-Chair Foster relayed that he would hold off on the amendment deadline. Commissioner Drygas thanked those that testified on the bill and indicated that it was difficult to find a balance. She wanted to see workers back in the workforce rather than drawing on public assistance. Co-Chair Foster reviewed the agenda for the following meeting. HB 303 was HEARD and HELD in committee for further consideration.