General Information

Government Type

State Agency

Entity

Labor Commission

Public Body

Utah Labor Commission

Notice Information

Add Notice to Calendar

Notice Title

WC C Advisory Council Meeting Minutes

Notice Tags

Workers' Compensation

Notice Type(s)

Meeting

Event Start Date & Time

September 23, 2024 12:00 PM

Event End Date & Time

September 23, 2024 01:30 PM

Event Deadline Date & Time

09/23/24 12:00 PM

Description/Agenda

THE LABOR COMMISSION WORKERS' COMPENSATION ADVISORY COUNCIL Monday, September 23, 2024, 12:00 PM- 1:30 PM Utah Labor Commission, 160 East 300 South Room 319 Salt Lake City, Utah Google Meet Call-in Meeting. The following Advisory Council Members were in attendance: Dave Davis, President Utah Retail Merchants Association Dawn Atkin, Esq. Brian Kelm, Esq. Eric Vanderhooft, M.D. Paula Stauffer, Utah Business Insurance Brandt Goble, Painters and Tapers Local 77 Dave Gessel, Utah Hospital Association Senator Scott Sandall Rep. Jim Dunnigan Ryan Andrus, WCF Mutual Insurance Company The following Advisory Council members were excused: . Brandon Dew, Operating Engineers Local Union #3 Reo Castleton, Rep for SL County Firefighters L 1696 (retired) Todd Bingham, President, Utah Manufacturers Association Jeff Rowley, Utah Local Government's Trust Rikki Hrenko-Browning, Utah Petroleum Association Joey Gilbert, Associated General Contractors of Uta Others Present: Ron Dressler, Industrial Accidents Division Director, Labor Commission Felicia New, Industrial Accidents Division, Labor Commission Todd Johnson, NCCI Phu Le, Administrative Services Director, Labor Commission M. Alex Natt, Adjudication Division Director, Labor Commission Rodney Morris, Deloitte Consulting, LLP Allen Rollo, Utah Office of State Treasurer Michele Halstenrud, WCF Mutual Insurance Company Douglas Shepherd, Medical Director, Labor Commission WELCOME: Ron Dressler called the meeting to order at 12:00 p.m. Miscellaneous Business: Ron stated there was not a full quorum of voting members therefore they will not be voting on anything. However, they would follow-up with an internet vote after the meeting. The minutes of previous meeting held April 10, 2024, will be approved at another time when enough voting members are in attendance. Ron stated that since there wasn't a quorum of voting members, no official votes would take place. However, the Council could hold a vote by email after the meeting if needed. The minutes of the previous meeting held on April 10, 2024 will be approved at the next meeting when a quorum is present. Labor Commission Budget/Premium Surcharge Funds: Phu Le presented the FY 2024 Financials. Phu's presentation will be emailed to the council after the meeting. Phu gave a high-level summary of the Workplace Safety Grant program, as well as Adjudication's and Industrial Accident's budgets. Phu stated that approximately $760,000.00 was spent out of the Workplace Safety budget. The revenue that came in was approximately $1.5 million for FY 2024. The Adjudication division cost approximately $1.7 million to operate and is in good shape. The Industrial Accidents Division also costs approximately $1.8 million to operate. Revenue for Industrial Accidents Division has increased due to insurance premiums and workers' compensation waivers. Phu stated the changes to this fund include a collection manager and the medical director it's working as needed. Rod Morris presented Deloitte Consulting's estimates as of June 30, 2024. Rod stated in summary Deloitte Consulting will propose keeping the assessment rates the same as last year, 0% for the ERF and 50 basis points for the UEF. Rod gave an estimate of the unpaid claims to assist the Labor Commission in preparing the financial statements of the ERF and UEF as of June 30, 2024. The estimate of unpaid claims is produced on an undiscounted basis and a discounted basis to reflect the time value of money. The estimate of unpaid claims includes a provision for known claims, incurred but not reported claims, and settlement expenses to bring all claims to closure. The interest rate used to discount future ERF claim payments is 3.00% and is unchanged from last year. The interest rate used to discount future UEF claim payments is 4.25% and unchanged from last year. The ERF records the discounted liability of $131.3 million and there are only 554 open claims in the fund. Rod stated that over the last year, quite a few passed away, which was more than expected. He also stated of those that passed the average age was 81. Allen Rollo gave a retrospective look at investment assumptions for the ERF. The State Treasurer has recommended the long-term interest rate assumption remain the same at 5.25%. Rod gave an overview of the ERF balance under current assumptions stating a positive position of $0.9 million. The fund balance is $7.8 million. Rod gave the unpaid claim liability analysis for the UEF. Actual claim payments came to $1.5 million. Revenue has been higher than expected over the past year. The Fund balance is at $21.3 million dollars. Overall, Rod states Deloitte Consulting recommends maintaining the same assessment rates in 2025 for the ERF and UEF. Deloitte Consulting's recommendation is of 50 basis points for the UEF and no rate assessment for the ERF. After discussion and request to see other assessment rate impacts, Ron Dressler stated there will not be a vote today. Ron stated an email vote will be sent out at an option of voting for .5 or .4 basis points for the UEF assessment rate. Legislative and Rule-Making Matters: Dawn Atkin and Brian Kelm discussed R612-300-3 Obtaining Medical Care for Injured Workers. Brian shared a document showing the proposed change of language to the bill. R612-300-2 (H). Payor's right of medical examination. The payor may arrange for the medical examination of an injured worker at any reasonable time and place. A copy of the medical examination report shall be made available to the Commission upon request. The proposed language would remove 'shall be made available to the Commission upon request.' The language would include 'shall be sent to the injured worker, or their counsel if represented, within seven days after the Payor's receipt of it. A copy shall also be sent to the Commission upon its request. Travel expenses shall be paid prior to the medical exam.' Dawn Atkin stated since a vote will not take place today and due to the discussion concerning the language of the bill, they will take the time to fine tune the language and discuss it further. Ryan Andrus and Michelle Halstenrud discussed the proposed Hospital Fee Schedule. Michelle presented updated numbers from NCCI. Ryan stated his PowerPoint had been previously emailed to the council. A copy of the draft legislation of the rule and statutory language proposed by Ryan will be sent out to the council. Dave Gessel raised several points and after discussion agreed to work with Senator Sandall directly on proposed language. All agreed to discuss further at the next meeting being held November 13, 2024. Other Business: Ron Dressler stated the last order of business was an approval of the remaining date for the next Council meeting. For the foreseeable future, the meetings will be held virtually. 2024 WC Advisory Council meeting dates - November 13 (Wed.) at 12:00 p.m. The meeting was adjourned at 1:53 p.m.

Notice of Special Accommodations (ADA)

NOTICE OF SPECIAL ACCOMMODATION DURING PUBLIC MEETINGS In compliance with the Americans with Disabilities Act, individuals needing special accommodations (including auxiliary communicative aids and services) during this meeting should notify Sara Danielson at 801-530-6953.

Notice of Electronic or Telephone Participation

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Meeting Information

Meeting Location

160 East 300 South, 3rd Floor
Salt Lake City, UT 84114
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Contact Name

Sara Danielson

Contact Email

sdanielson@utah.gov

Contact Phone

8015306953

Notice Posting Details

Notice Posted On

November 13, 2024 08:53 AM

Notice Last Edited On

November 13, 2024 08:53 AM

Deadline Date

September 23, 2024 12:00 PM

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