Workers' Compensation Advisory Council

Dec. 14, 2005

minutes

Voting members: Staff members:

Don Gerdesmeier Jamie Anderson

Mike Hickey Scott Brener
Glen Johnson Debbie Caswell
Tom Hesse for David Olson Jim Feckey
Reed Pollack Nancy Leppink
Gary Thaden Patricia Todd
Brad Lehto for Ray Waldron Teri Van Hoomissen

Voting members excused: Visitors:

Wayne Ellefson Craig Anderson; MWCIA

Julie Schnell Bruce Anderson; State Representative
Paul Cassidy; Leonard, Street
Voting members absent: Liz Carpenter; MPHA
Colleen Colburn; MCA
Stan Daniels Dan Hawkins; Target Corp.
Brad Robinson Tammy Lohman; Commerce
James Cavanaugh Bob Lund; State Fund
Andy Morrison; Koll, Morrison
Nonvoting members: John Nesse; MDPA
Mary Pixler; MAPS
Sen. Tom Bakk Katy Sen; House DFL Research
Rep. Denny McNamara Elizabeth Shrogen; AFL-CIO
Rep. Mike Nelson

Nonvoting members absent:

Sen. Geoff Michel

Commissioner Scott Brener called the meeting to order at 9:53 a.m. Roll was
called. A quorum was present on both sides.

II. Approval of the minutes from the Nov. 9, 2005 meeting

Don Gerdesmeier made a motion to amend the minutes from the Nov. 9, 2005,
meeting on page 3, the third paragraph, to read, “Brener agreed to include these two
issues for consideration as the WCAC moves toward a 2006 WCAC bill.” Glen
Johnson seconded the motion. All voted in favor of the motion and it passed.
Workers' Compensation Advisory Council -2- December 14, 2005
Minutes

Glen Johnson made a motion to approve the minutes from the Nov. 9, 2005
meeting, as amended. Reed Pollack seconded the motion. All voted in favor of the
motion and it passed.

Agenda – Bruce Anderson wishes to be on the agenda regarding issues from the last
meeting.

IV. A. Commissioner's update

Brener bid farewell to Jamie Anderson, the department’s legislative liaison. She
will be leaving for private practice. He is conducting interviews and hopes to replace her
by next month.

Brener announced the pharmacy rules would be mailed to members Friday. The
new rules create an incentive to move from a paper process to an electronic process and
ties to a lower reimbursement rate.

Brener discussed future issues. Ray Waldron sent him a letter regarding issues the
AFL-CIO wishes to discuss in greater detail. Brad Lehto distributed copies of the letter to
the Workers’ Compensation Advisory Council (WCAC) members. The Department of
Labor and Industry (DLI) will review the recommendations. Lehto asked about the North
Dakota reciprocity agreement issue in Waldron’s letter. Brener asked for information
about anyone experiencing problems.

The MWCIA has approached DLI about modifying the cancellation notification
timeframe from 60 days to 30 days.

IV. B. Pure premium base rate and the insurance marketplace

Craig Anderson presented information about the difference between pure

premium base rates versus the premium paid by an employer. He distributed a handout
and discussed the following factors:

• pure premium base rate level;

• insurance company filed rate schedule;
• additional surcharges and price increases;
• additional price decreases; and
• individual risk rating and pricing.

There was general discussion about the contractors premium adjustment plan in
the construction industry. The plan was instituted more than 10 years ago. This program
reallocates premium from higher to lower average wage paying contractors. Each
contractor receives information about this program on a yearly basis.

Sen. Tom Bakk inquired about the impact of rising medical costs on premium
rates. Anderson replied that medical costs are increasing in the workers’ compensation
system faster than they are in the general health care system. Traditionally, indemnity
was the larger portion of the benefits paid, but this has recently changed to medical being
the larger portion.
Workers' Compensation Advisory Council -3- December 14, 2005
Minutes

Rep. Bruce Anderson

Rep. Bruce Anderson asked the WCAC to look at a constituent’s concerns

regarding the workers’ compensation system; specifically, the payment of medical bills,
the high cost of attorney fees and the need for prior approval for certain medical
procedures. He stated his constituent might attend the next meeting to share his
frustration.

Gary Thaden asked that DLI have additional meetings with the employee before
he comes to the council and refer him to the Lawyers’ Board of Professional
Responsibility if he is not happy with the way his attorney is handling his case. This
should be done before he comes in February.

Bakk thanked Rep. Anderson for bringing this issue forth, because there is a lot of
frustration with the workers’ compensation system and injured employees cannot get
through without an attorney. He asked for a chronological summary of what the person
went through during the past few years.

Hickey suggested that if the person comes, someone from DLI be here to give the
other side, so they can make an assessment about what findings were made and why.

IV. D. Clarification of data practices in chapters 13, 175 and 176

Nancy Leppink spoke regarding data practices changes DLI is working on as part
of this year’s legislation. In the early 1970s, there was the broadly held belief that all
government information in the Data Practices Act should be public unless made private.
In recent years, the approach toward data practices has switched to making more data
private and less data public, as indicated in the Supreme Court Westrom decision.
Therefore, DLI needs to clarify what data is public versus private. Workers’
compensation data is often very sensitive. Therefore, DLI is shifting its assumption that
workers’ compensation data is private unless made public and is drafting language about
the privacy of workers’ compensation data.

Thaden heard there would be a data practices bill and suggested DLI include its
provisions in that bill. Leppink said she is keeping this in the workers’ compensation bill,
because there are a number of players and DLI plays a unique role as the repository for
workers’ compensation data.

IV. C. Intervention

Patricia Todd announced she attended two meetings with intervenors in

November with judges and their staffs from the Office of Administrative Hearings
(OAH) and various parties involved in the intervention process. The following
suggestions came out of those meetings:

• provide enhanced information on the DLI and OAH Web sites;

• train interveners about workers’ compensation and how it impacts intervenors,
how to intervene and how to evaluate and respond to an offer of settlement; and
Workers' Compensation Advisory Council -4- December 14, 2005
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• improve communications between attorneys and intervenors.

Brener noted the next meeting is set for Feb. 8, 2005, and asked members if they
would need a meeting before that. Thaden suggested the chairpersons for the labor and
management representatives should meet with the commissioner prior to the meeting. It
was decided a March meeting may be necessary; Deb Caswell was to find a date.

Lehto asked if the department had any further contact with Dr. Lee. DLI evaluated the
concerns highlighted in Dr. Lee’s letter and noted they are similar to those of Rep.
Anderson’s constituent.

Thaden made a motion to adjourn at 11:05 a.m. Tom Hesse seconded the motion.
All voted in favor of the motion and it passed.

Respectfully submitted,
Debbie Caswell
Executive Secretary

dc/s