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

SPONSOR Martinez

ORIGINAL DATE

LAST UPDATED

1/27/07

HB

SHORT TITLE Wages for Injured Workers Returning to Work

SB 190

ANALYST Lucero

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Workers’ Compensation Administration

SUMMARY

Synopsis of Bill

Senate Bill 190 limits the payment of weekly indemnity benefits and modifiers to the average

weekly wage defined in NMSA 1978, §52-1-20. This is, after the worker has been diagnosed

maximum medical improvement (MMI) and has returned to work at a wage that is less than then

the pre-injury wage. The bill replaces gender specific language with gender neutral

amendments.

FISCAL IMPLICATIONS

None to the Workers’ Compensation Administration

SIGNIFICANT ISSUES

This amendment would control the payment of disability benefits attributable to modifiers to

prevent disability wage payments from exceeding the pre-injury average weekly wage.

Senate Bill 0190 – Page

2

PERFORMANCE IMPLICATIONS

None to the Workers’ Compensation Administration

ADMINISTRATIVE IMPLICATIONS

None to the Workers’ Compensation Administration

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

None at this time.

TECHNICAL ISSUES

From the New Mexico Workers’ Compensation Website:

What is the amount and duration of Wage Loss Benefits.

If you are taken off work duty by an "authorized health provider," workers' compensation

insurance pays 66 2/3 percent of your average weekly wages, called Temporary Total Disability

(TTD) Benefits. These benefits go into effect on the 8th day of non-work status. The first 7 days

of non-work status are not payable unless you are off work up to 4 weeks. The first payment of

benefits will be mailed to you 21 days after you are off work. Thereafter, benefits will be mailed

to you every 2 weeks.

TTD Benefits will stop either when the doctor releases you to full work duty or when you reach

Maximum Medical Improvement (MMI), which is that point in time the doctor feels you are

as good as you are going to get from medical treatment. If the doctor believes you have some

remaining disability after you reach MMI, you may then be eligible for Permanent Partial

Disability (PPD) Benefits for a specified period of time, depending on the type of your injury.

Maximum medical improvement (MMI) is based on the reasonable medical probability that no

further material recovery from or lasting improvement to an injury can reasonably be expected.

OTHER SUBSTANTIVE ISSUES

The Workers’ Compensation Advisory Council approved this bill.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

Status quo.

DL/mt