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SAIF presents red-line revisions to LC 178; stakeholders largely accept changes, SAIF says it remains neutral
Summary
SAIF representatives told MLAC that proposed changes to LC 178 would fix time‑loss rate to the worker's wage on the date of injury (with COLAs preserved), apply to injuries on/after Jan. 1, 2027, and are not retroactive; SAIF's actuarial estimate of impact was about 2.9%.
Representatives from SAIF told the MLAC on Jan. 22 that they had prepared red-line edits to LC 178 to address issues raised in earlier WCD analysis and stakeholder review. Elaine Schooler (SAIF) explained that the principal changes would calculate the time‑loss rate using the worker's wage on the date of injury and keep that figure static rather than recalculating it annually when the state average weekly wage changes; workers would still receive annual cost‑of‑living adjustments.
SAIF said the proposed changes would apply to claims with a date of injury on or after Jan. 1, 2027 (for occupational disease, interpreted as first date of treatment or disability) and would not be retroactive for current claimants. SAIF also described updates to permanent total disability calculations to align with temporary total disability methods while preserving the statutory minimum benefit. An SAIF actuarial re‑run estimated the overall impact at 2.9%, the presenter said, and SAIF stated neutrality on the bill provided the insurer can operationally implement the changes.
Stakeholders including AFSCME, AGC and OTLA expressed appreciation for the collaborative drafting process and indicated acceptance or satisfaction with the current draft; MLAC staff said a final language package and formal bill analysis would be provided ahead of the Feb. 5 meeting. The committee did not take a formal vote on LC 178 at this meeting.
