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F I S C A L I M P A C T R E P O R T
SPONSOR Leavell
DATE TYPED 3/15/2005 HB
SHORT TITLE Workers’ Comp Independent Medical Exam
SB 45/aHJC
ANALYST Dunbar
APPROPRIATION
Appropriation Contained Estimated Additional Impact Recurring
or Non-Rec
Fund
Affected
FY05
FY06
FY05
FY06
NFI
(Parenthesis ( ) Indicate Expenditure Decreases)
Workers’ Compensation Administration (WCA)
SUMMARY
Synopsis of HJC Amendment
The House Judiciary Committee amendment to Senate Bill 45 expands the criteria on the use of
an independent medical examination when a dispute exists between the parties to include:
the reasonableness or necessity of medical or surgical treatment,
the date upon which maximum medical improvement was reached,
the correct impairment rating for the worker,
the cause of an injury or any other medical issue.
WCA supports this amendment.
Synopsis of Original Bill
Senate Bill 45 reverses an appellate court decision which held that a workers’ compensation
judge was not authorized to order an independent medical examination of a worker on his or her
own motion. This bill allows a Workers’ Compensation Judge to order an independent medical
examination on his or her own motion any time it will assist with the determination of any issue
in the case.
pg_0002
Senate Bill 45/aHJC- Page 2
Significant Issues
This bill has been approved by the Workers’ Compensation Advisory Council
PERFORMANCE IMPLICATIONS
Workers’ Compensation Administration states that the bill will reduce the average pending time
of a workers’ compensation case prior to a formal hearing. WCA notes that the information re-
ceived from an independent medical exam will result in much improved judgments.
FISCAL IMPLICATIONS
None anticipated. The employer is already obligated to pay for independent medical examina-
tions
ADMINISTRATIVE IMPLICATIONS
Any additional load can be absorbed without additional resources.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
The bill overturns the decision in Ramierez v. IBP Foods, 130 NM 559 (Ct App, 2001)
TECHNICAL ISSUES
OTHER SUBSTANTIVE ISSUES
According to WCA without this legislation, there will be continued degradation of judicial deci-
sion-making where the parties fail to request an independent medical examination. Enactment of
this legislation will provide faster and higher quality decisions in workers’ compensation cases
where an additional medical opinion would be helpful.
BD/lg:yr