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Panel hears bill to speed lump-sum payments for permanent partial disability awards
Summary
MADAM CHAIR GRABER — The committee heard House Bill 2,802 on Feb. 23, a workers' compensation measure that would require an insurer to make a lump-sum payment of a permanent partial disability award when an injured worker waives reconsideration of a notice of closure or the award is final by operation of law, subject to exceptions.
MADAM CHAIR GRABER — The committee heard House Bill 2,802 on Feb. 23, a workers' compensation measure that would require an insurer to make a lump-sum payment of a permanent partial disability (PPD) award when an injured worker waives reconsideration of a notice of closure or when the award is final by operation of law, subject to specified exceptions.
Division explanation: Matt West, interim administrator of the Workers' Compensation Division, told the committee the bill corrects an unintended consequence of a 2023 Court of Appeals interpretation that left some workers waiting up to 60 days for appeal rights to expire before obtaining a lump-sum payment. "Our goal with House Bill 2,802 is to ensure that workers who waive their right to appeal can get the full amount of their award sooner," West said.
Key details: The introduced bill would require lump-sum payment on the worker's request when the worker waives reconsideration of a notice of closure. The insurer would still be permitted to deny a lump sum in specified circumstances — for example, when compensation is stayed due to a hearing request or when the worker is actively participating in vocational training. Stakeholders discussed raising the automatic lump-sum threshold: current law requires automatic lump sums for awards at $6,000 or less; a dash-1 amendment proposes raising that threshold to $9,000.
Concerns and technical issues: Witnesses supported the bill but highlighted technical interactions with other measures and prior session changes. Giovanna (Jovanna) Patrick of the Oregon Trial Lawyers Association said OTLA "support[s] this bill" but warned that another pending bill (House Bill 2791) might conflict with section language that denies lump sums while a worker is in training. SAFE, the state not-for-profit workers' compensation insurer, supported the bill but asked the committee to address an "overpayment" interaction created by 2022 session changes (House Bill 4138) that limited insurers' ability to fully recoup overpayments; SAFE's witness said the interaction can inflate short-term payouts and asked for reconciliation in MLAC.
Next steps: The Workers' Compensation Management Labor Advisory Committee will review the measure and the dash-1 amendment; the committee did not take a final vote on HB 2,802 on Feb. 23.
Ending note: Stakeholders generally supported expedited lump-sum payments for workers who waive reconsideration, while several parties asked for technical fixes in rulemaking or MLAC so the bill does not create unintended overpayment or recovery outcomes.
