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F I S C A L I M P A C T R E P O R T

SPONSOR:	Lujan, A.		DATE TYPED:	02/13/03		HB	500
SHORT TITLE:		Selection of Workers’ Comp Care Providers				SB
					ANALYST:		Gilbert

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY03	FY04	FY03	FY04
			NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to HB 499

SOURCES OF INFORMATION

LFC Files

Responses Received From

Workers’ Compensation Administration (WCA)

SUMMARY

Synopsis of Bill

House Bill 500 alters the current method for selection of workers’ compensation health care providers.

This bill requires the employer to serve upon the injured worker [to make the selection] a notice in writing of the name and address of the employer's choice of the initial health care provider within ten days of the date the injured worker notified the employer of the work-related accident.

Significant Issues

According to the Workers’ Compensation Administration (WCA), this bill alters the balance struck on the most acrimonious issue confronting the 1990 Workers’ Compensation Task Force.

ADMINISTRATIVE IMPLICATIONS

The WCA states that this bill would reduce the number of health care provider choice hearings.

OTHER SUBSTANTIVE ISSUES

According to the WCA, the ten-day worker notification period is too long to provide for effective initial treatment of injured workers.

The Workers’ Compensation Advisory Council has reviewed proposed legislation affecting the workers’ compensation system, pursuant to its statutory mandate. The prior Council had a series of public meetings during the summer of 2002, where legislative proposals for this session were discussed. At the Council’s request, proposals involving changes to workers' compensation benefits were analyzed for their costs by the Workers' Compensation Administration research staff, the National Council on Compensation Insurance and New Mexico Mutual Casualty Company.

The specific language contained in this proposal has never been submitted to or reviewed by either the former or current Workers’ Compensation Advisory Council. As such, the Workers’ Compensation Advisory Council opposes this bill.

RELATIONSHIP

According to the WCA, an injured worker will always have control of the health care provider choice during the benefit period extended by HB 499.

RLG/prr