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Legislation

House Enrolled Act 1307 (Link to bill)

The act provides increased benefits for permanent partial impairments and increases in the average weekly wage maximum. The increases in benefits are staged over a five year time period with increases effective each July 1st from 2006 to 2010.
HEA1307 is expected to have an overall impact on system costs for all years of 1.5% to 2.1% (approximately $13 to $19 million).
It makes several other changes to the Workers Compensation Act. Here's a summary organized by categories.
Second Injury Fund:
Changed the assessment from loss-based to premium-based
Attorney Fees:
Specifies the amount of fees attorneys may collect


House Enrolled Act 1553 (link to bill)

The Indiana General Assembly passed and the Governor signed (on May 10, 2001) House Enrolled Act 1553 effective July 1, 2001 that makes several minor changes to the Workers Compensation Act. Here's a summary organized by categories.

Independent Contractor:

  • Homeowners are exempt from getting a certificate of insurance from a contractor.
  • Indiana Department of Revenue must clear status of an independent contractor ($5 fee).
  • Independent contractor certificate (formerly called affidavit) with WC Board is effective 7 days after stamped (now a $15 fee).
  • Contractor who assists employees in filing a false statement for independent contractor status commits a Class D felony.

Billing Review:
WC Board can impose a civil penalty ($100 to $1,000) against a billing review service that uses a standard not in compliance with the statute.

Second Injury Fund:

  • Assessment limit raised from 1.5% to 2.5%.

  • WC Board to assign an employee to monitor eligibility of recipients.

Definition of "Employer"
Specifies that a parent and a subsidiary of a corporation or lessor of employees are each considered to be the employer for purposes of the exclusive remedy provisions of the WC Act.

ICRB:
Deletes the requirement that the ICRB must investigate assigned risk employers (IC 27-7-2-34).


House Enrolled Act 1050
On March 15, 2000, the Governor signed HEA1050 to become Public Law 193 effective July 1, 2000. The act provides increased benefits for permanent partial impairments and an increase in the average weekly wage maximum. The increase in benefits are staged over a three year time period with increases effective July 1, 2000; July 1, 2001; and July 1, 2002.

     HEA1050 is expected to have an overall impact on system costs of +7.7% over three years. The table below summarizes the rate impact and the advisory rate filings that contemplate the benefit increases.

Benefit Increase Rate Impact Cum Total Advisory Rate Filing contemplating the change
07/01/2000
3.3%
1.033
07/01/2000 - law only filing
07/01/2001
3.7%
1.071
01/01/2001 - normal rate filing
07/01/2002
0.5%
1.077
01/01/2002 - normal rate filing
Total
7.7%
N/A
 

Notes:
1. For 07/01/2000 filing, both SB12ss and HEA 1050 contain benefit increases which impact rates at 0.3% and 3.3% respectively, for a total of 3.6%.
2. Rate Impact Total and Cumulative Total are calculated in a multiplicative manner as follows: 1.077 = 1.033 x 1.037 x 1.005



ICRB
5920 Castleway West Drive
Indianapolis, IN 46250
P.O. Box 50400

icrb@icrb.net

800.622.4208
317.842.2800

Fax: 317.842.3717

Hours: Monday - Friday - 8:00 a.m. - 4:30 p.m.
Summers: Friday 8:00 a.m. - 2:00 p.m.

 


 

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