DCBS outlines workers' compensation modernization, ombuds expansion and a one‑time transfer to BOLI

Director Andrew Stolfi and DCBS staff described a package of investments and performance issues tied to Oregon’s worker protection system — including workers’ compensation, the Workers’ Compensation Board, Oregon OSHA and two ombuds offices.

What was presented: Stolfi and Patrick Heath emphasized two multi‑biennium technology modernization efforts in the Workers’ Compensation Division and at the Workers’ Compensation Board. Agency witnesses said the governor’s budget includes approximately $13,500,000 other funds for workers’ compensation program modernization and $2,500,000 other funds for the Workers’ Compensation Board case management system to modernize appeals workflows.

Workers Benefit Fund transfer: Heath and Stolfi confirmed the governor’s recommendation includes a one‑time $15,000,000 transfer from the Workers Benefit Fund (WBF) to BOLI to support workplace investigation programs. The agency explained the WBF is funded by a 2¢ per hour assessment (split evenly between employers and employees) and that the transfer would be drawn from the WBF balance; the agency said it does not expect to change the assessment rate because of the transfer.

KPM and insurer timeliness concerns: Stolfi flagged key performance measures. He said KPM 9 — a measure of insurer and self‑insured employer claim processing performance — was 78.8% against an 85% target. He told the committee the department has increased enforcement focus, conducted audits and raised civil penalty amounts to improve compliance, and said more recent quarter‑by‑quarter data show improvement.

Ombuds offices and outreach: DCBS described two small but active ombuds offices. The Small Business Ombuds (2 FTE) helps businesses contest premium audits, classification codes and similar issues; the agency gave a recent example in which ombuds assistance yielded more than $32,000 in savings for a small Salem business. The Ombuds for Oregon Workers (6 FTE) — which was expanded three years ago to serve non‑injured workers on safety and health matters — receives roughly 587 inquiries per month, resolves about 86% of inquiries within two days, and reported that about 16% of monthly inquiries come from non‑English speakers (97% of those Spanish speakers). DCBS requested one additional outreach staffer to expand bilingual engagement.

Administrative efficiencies and accounts receivable: Stolfi described office consolidations, shared hearing facilities and a recent effort to assign delinquent debt for collection. As of June 30, 2024, DCBS had assigned 100% of eligible liquidated and delinquent debt (about $129,000,000) to the Department of Revenue; recovered debt totaled about $7,000,000 in the last fiscal year.

Committee follow‑up: Senators asked for more granular insurer and claim data (how many insurers contribute to the KPM shortfall, and which insurers are out of compliance). DCBS said the workers’ compensation administrator would provide additional data during the next day’s presentation or in supplemental materials.