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Committee debates future of second-injury fund amid legal and administrative costs
Summary
Lawmakers weighed the purpose, costs and administrative burden of the workers' compensation "second injury" fund, hearing that 22 states have sunset similar programs and that administrative hearings have increased following recent court decisions.
The Finance - Division I committee heard extensive testimony about the state—s special fund for second injuries, a workers' compensation reimbursement mechanism that reimburses insurance carriers for certain costs when a claim meets statutory eligibility criteria.
A department witness described the fund—s mechanics: carriers notify the fund within 100 weeks of an injury, submit an eligibility application, and—if the claim meets the statutory criteria and a $10,000 deductible—may receive reimbursement of 50% to 100% of eligible indemnity and medical expenses. The fund is financed by an assessment on…
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