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MESSAGE FROM CHAIRMAN TARR On behalf of the entire staff at the Commission, I am pleased to present the 2004 Annual Update and the Summary of 2004 Legislative Changes. This issue presents important information for the Workers’ Compensation community. This past year has been an exciting, challenging, and productive year. All of my colleagues look forward to working with you during the next year. Sincerely, Lawrence D. Tarr SEVENTH ANNUAL WORKERS’ COMPENSATION SEMINAR The Workers' Compensation Commission will offer its seventh annual seminar on workers’ compensation procedures on Tuesday and Wednesday, September 14 and 15, 2004, at the Holiday Inn Select – Koger South Conference Center in Richmond. The seminar brochure and registration information are available on the VWC website bulletin board at www.vwc.state.va.us. For general information, please call our Seminar Information line at (804) 367-0038 or e-mail seminar@vwc.state.va.us. ****** NEW MAXIMUM AND MINIMUM COMPENSATION RATES The compensation rate is adjusted each year on July 1. Effective July 1, 2004, the maximum rate is $706.00, and the minimum rate is $176.50. The cost of living increase will be 1.75%. ****** COMPENSATION CALCULATION SOFTWARE The Commission's computer program for calculating compensation benefits and cost of living adjustments is available with the 2004 rate change. There is no charge for this program. The Compensation Calculation Program provided by the Commission can now be downloaded from the website. The program is reached by using the “Rules and Regulations” button from the home page (Benefits Calc Programs). Please contact the Information Systems Help Desk at (804) 367-2254 if you need assistance, or if you would like to receive the program on a diskette. ****** WEBSITE Our website (www.vwc.state.va.us) began operation in November 1999. Helpful features on the site include directions to the Richmond office and the regional offices as well as directions to all hearing locations throughout the Commonwealth. One of the most significant services to litigants is the searchable database containing the Commission’s review opinions. These opinions are generally made available for public access on the site within forty-eight hours of their issuance. Commission forms are available for download from the website and most can now be completed before being printed. Coming soon to
the website…The Compromise Settlement Department is updating
its instructions and forms. Please look on the website in the next
few months for updated suggestions and forms regarding settlements
which provide for no payment of medical bills; settlements containing
a blanket release; and settlements which require a Medicare set aside.
CODING CHANGES The Commission has conducted an extensive evaluation of its current systems for coding relevant claim information and has studied alternative methods of coding. Based on the results of these analyses, we have decided that our current systems should be replaced or enhanced based on contemporary industry standards. We are beginning the process of implementing these changes, and we expect the conversion to NAIC coding for industry codes, SOC coding for occupations and WCIO coding for injury type, nature of injury and cause, to occur sometime next year. We will keep our customers informed of our progress on a regular basis. These modifications will increase our statistical collection and reporting capabilities and provide greater flexibility in analyzing our data and that of other jurisdictions. If you have any questions or comments about this process, please contact Sam Lupica at 804-367-4395 or e-mail to salvatore.lupica@vwc.state.va.us. ****** CRIMINAL INJURIES COMPENSATION FUND The Criminal Injuries Compensation Fund (CICF) implemented a number of changes to enhance customer service and improve collections as a result of the prior year’s strategic planning process. The Fund implemented telephonic translation services for non-English speaking victims of violent crime and CICF brochures were translated into Spanish. A system of randomized Customer Satisfaction Surveys was implemented to obtain feedback on how the Fund can better serve victims and their families. Additionally, the CICF partnered with the Network for Victims and Witnesses of Violent Crime, the Department of Corrections, and the Supreme Court to sponsor four regional meetings on the complex topic of restitution. Over 350 individuals from local courts, Probation and Parole, Commonwealths’ Attorneys’ offices, and victim service providers attended the regional summits to discuss restitution and collections issues. The visibility afforded by these summits assisted CICF in increasing restitution collection by $39,000 over the prior year. Additionally, unclaimed restitution totaled $251,223, an increase of about $136,000. The Fund awarded over $2.7 million in claims in the past year, assisting 1,314 new victims, and providing supplemental assistance to 729 current clients. As a response to the reallocation of CICF funds in the prior years, the Fund implemented a number of cost saving initiatives to maintain adequate monies for victims. This included negotiating payments with providers, assisting claimants in obtaining other sources of assistance (such as Medicaid and Charity Care), and including life insurance as a collateral resource. From a national perspective, the Virginia Criminal Injuries Compensation Fund was honored to serve as a trainer and compensation model for the International Terrorism Victim Compensation Program (ITVCP), which is administered by the U.S. Department of Justice. ITVCP staff received one day of off-site and two days of on-site training by Virginia CICF staff. CICF staff served on the committee that assisted with the development of the program. Additionally, CICF staff provided training on Performance Measurement at the National Association of Crime Victim Compensation Boards’ national conference. ****** 2003 ACT ANNOTATED The Virginia Workers' Compensation Act Annotated 2003 containing Rules of the Supreme Court of Virginia, Court of Appeals of Virginia, and Commission case notes is available at the Commission for $25.00 or by mail for $28.00. The 2004 edition will be published by Lexis Nexis and will be available in September. OPINIONS BY E-MAIL The Commission has two ways attorneys, carriers, and claimants’ representatives can receive opinions by e-mail. The daily list includes the VWC Reviews and Opinions from the Court of Appeals and Supreme Court for that day. The monthly list contains only the VWC Reviews issued that month and annotated VWC Reviews for the year. ****** CLAIMS EXAMINATION DEPARTMENT The Claims Examination Department consists of three teams, each comprised of a Team Leader, a Claims Examiner, a Facilitator, and support staff. Team Leaders, in concert with the Claims Manager, are responsible for establishing day-to-day duties and responsibilities for each team member and for ensuring that the work product is consistent, accurate, and timely. Department Team Leaders are Senior Claims Examiners Carolyn Fleming, Valerie Holloway, and Vivian Guidt. Each team is responsible for the processing of claims in specific file number series. Vivian Guidt’s team is responsible for Commission claim files with the last two digits from 00 through 31, Valerie Holloway’s team from 32 through 65, and Carolyn Fleming’s team from 66 through 99. ****** MEDIATION PROGRAM and OMBUDSMAN’S OFFICE The Commission has trained mediators who facilitate the resolution of disputes through an informal and confidential mediation process. Since its inception in October 1999, over 700 mediations have been conducted with an overall resolution rate of 80 percent. Many disputes can be resolved through mediation, eliminating the need for a hearing. Mediation is a cost-effective way to resolve claims or specific issues in a timely manner. These services are free and can be conducted in person or by telephone conference. We schedule mediations to accommodate the parties' schedules and needs. In some areas of the state, we set aside certain days of each month for the scheduling of mediations. In addition to coordinating the mediation program and informally resolving disputes, the Ombudsman's office serves as an educational resource for the general public and parties to a claim who have questions about the Act or Commission processes. Using informal dispute resolution techniques, the majority of the disputes prompting mediation requests are resolved by the Ombudsman's office. We assist in the exchange of information and communication between the parties and the Commission. To utilize our services, contact the Ombudsman's Office Coordinator Tami Wescott (804-367-2199), Associate Ombudsman Angela Lent (804-367-0438), Assistant Ombudsman Joyce Hicks (804-367-0533), Assistant Ombudsman Michael Skiffington (804-367-2892), Medical Provider Specialist Brenda Harris (804-367-8389) or Ombudsman Ann Beverly (804-367-8269). ****** COMMISSION BEGINS ELECTRONIC FILING INITIATIVE Over the next several months, we will be initiating electronic filing options for a number of the reporting requirements we administer. These will include systems for injury reporting, initial claim filing, responding to the Commission’s “20-day Order,” and filing notices of cancellation or non-renewal of workers’ compensation insurance policies. We are developing and testing these applications now. These applications will be available from our website at www.vwc.state.va.us behind the tab entitled “Electronic Filing Services.” Be sure to check there periodically. We will be updating the site as the electronic filing options become available. If you have any questions in the meantime, please feel free to contact Sam Lupica at 804-367-4395. ****** NEW REGIONAL OFFICES AND DEPUTY COMMISSIONERS Earlier this year, the Commission opened new Regional Offices in Manassas and Fairfax. The Manassas Regional Office, located at 7900 Sudley Road, is managed by Deputy Commissioner Carolyn Colville and serves as the hearing site for cases originating in Fauquier, Loudoun and Prince William Counties, and from the cities of Manassas and Manassas Park. The current Fairfax Regional Office is temporarily located in Suite 407 at 11166 Main Street. In November, the permanent Fairfax Regional Office will open at Prosperity Plaza, a location close to the Beltway. The Fairfax Regional Office is managed by Deputy Commissioner Susan Cummins and serves as the hearing site for cases originating in Alexandria, Arlington, Falls Church, Fairfax City and Fairfax County. Up-to-date information concerning the telephone numbers and addresses for these Offices may be found on our website. The Commission is pleased to welcome Deputy Commissioner Lynne Ferris to the Virginia Beach Regional Office. Prior to becoming a Deputy Commissioner, Ms. Ferris served the Commission for several years as a staff attorney. Deputy Commissioner Ferris succeeds Deputy Commissioner Gene Woolard, who was recently named a General District Court Judge for the City of Virginia Beach. In the fall, an additional Deputy Commissioner will be appointed and based in the Roanoke Regional Office. This Deputy Commissioner will handle the Covington, Martinsville and Bristol hearing dockets and will conduct mediations in the southwest region of the state. SUMMARY
OF 2004 CHANGES § 65.2-101 Coverage under the Virginia Workers’ Compensation Act was expanded during the 2004 session of the General Assembly through two amendments to the definitional provisions found in Code § 65.2-101. Senate Bill 547 expressly included “Americorp members” within the scope of the Act. Americorp members are participants in a federally funded program operated by the Department of Social Services. This amendment also included coverage for some specific groups of food stamp recipients. Both these groups are treated as employees of the State of Virginia for purposes of determining liability under the Act. This bill also amends Code §§ 65.2 500, -502, and -512 to provide that benefit eligibility for these participants is limited to medical benefits. House Bill 1267 also extends coverage under the Act by amending the definition of “employee” found in Code § 65.2-101. This amendment expressly provides that duly appointed members of electoral boards are considered employees within the meaning of the Act. § 65.2-201 Code § 65.2-201 is the statutory grant of general duties and powers of the Commission. At the 2004 session of the General Assembly, this section was amended to provide the Commission with powers equivalent to those held by courts of records with respect to certain discovery matters, contempt, the enforcement of orders and the authority to appoint guardians. Interestingly, before this provision, the Commission lacked the authority to appoint guardians of the property for minors entitled to a parent’s wage loss benefits as dependents and survivors. The 2004 amendment effectively eliminates the need for a custodial parent who is the surviving spouse of a claimant to go to Circuit Court to be appointed guardian of the property of the minor children. §§ 65.2-309, -310 and –311 House Bill 864 and Senate Bill 558 were both passed at the 2004 session to effectively mollify the ramifications of the Virginia Supreme Court’s ruling in Yellow Freight Systems, Inc. v. Courtaulds Performance Films, Inc., 266 Va. 57, 580 S.E.2d 812 (2003). These amendments provide that the filing of a claim against an employer under the Act creates a lien on behalf of the employer for all amounts paid by the employer under the Act. Code § 65.2-309 was expressly amended to provide that this lien operates against any verdict or settlement arising from a third party action instituted by the claimant with respect to the events giving rise to the injuries compensable under the Act. The amendments modify the result of Yellow Freight by deleting the language in § 65.2 309.1 referring to a “petition or motion of the employer at any time prior to verdict” and substituting the language “after reasonable notice to the parties and the employer.” Section 65.2 311(B) was amended to address the issue of the allocation of attorney’s fees in the situation where the employee does not adequately preserve the employer’s lien in a third party action. § 65.2-603 Subdivision (A)(3) of this Code section was amended by House Bill 270 to clarify qualifications for individuals providing rehabilitation services under the Virginia Workers’ Compensation Act. Under the amendment, those providing rehabilitation services that involve the exercise of professional judgment as defined in Code § 54.1-3510 must be appropriately licensed or certified by the Commission on Rehabilitation Counselor Certification or under other specifically enumerated statutory certification requirements. § 65.2-801 Traditionally, self-insured employers posted an indemnity bond to secure their liability for benefits under the Act. House Bill 474 and Senate Bill 323, both passed at the 2004 session, amend Code § 65.2-801 to broaden the acceptable forms of security that may be posted by self-insured employers to include a wider array of “financial instruments.” Pursuant to those amendments, the employer may choose surety bonds, certificates of deposit, government obligations, letters of credit, and cash. However, the Commission retains the right to set the acceptable amount of security. CHANGES
IN THE BIRTH-RELATED §§ 38.2-5001, -5009 and –5020 House Bill 1407
increases the assessments against individual physicians and participating
hospitals for participation in the program provided in Code §
38.2-5020. It also eliminates the authority of the Workers’
Compensation Commission to award attorneys’ fees in cases where
it is ultimately determined that the claimant is not a proper participant
in the program as provided in Code § 38.2-5009(B). CHANGES TO OTHER STATUTORY PROVISIONS POTENTIALLY AFFECTING ADMINISTRATION OF WORKERS’ COMPENSATION Code § 2.2-2407 establishes the Migrant and Seasonal Farm Workers Board to address issues uniquely pertaining to migrant and seasonal farm workers in Virginia. Senate Bill 363, passed at the 2004 session, amends § 60.2-113 in the Virginia Unemployment Compensation Act to require the establishment of an interagency Migrant Workers Policy Committee which will be comprised of representatives from several agencies including the Virginia Workers’ Compensation Commission. Code §§ 8.01-407, 8.01-413, 16.1-89, and 16.1-265 all have provisions referring to attorney issued subpoenas. Senate Bill 495 amends each of these provisions by adding a clause specifically stating that a Sheriff is not required to serve an attorney-issued subpoena where that subpoena is not issued at least five business days prior to the date on which production pursuant to the subpoena is required. |
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