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MONTANA SELF INSURERS' ASSOCIATION

MSIA Legislative Update 1/20/2023 - Week 3

Sponsored by Ritsema Law and MES Solutions

  • Legislative Bills Update
  • MSIA Webinar Practicalities-and-Pitfalls-of-the-MSA-Process - 2/16/2023 


Registration is open for our next in the MSIA CE Webinar Series, Practicalities-and-Pitfalls-of-the-MSA-Process, presented by Paul Sighinolfi, Senior Managing Director at Ametros, on February 16, starting at 10a MST. This Webinar has been approved for one CE credit through the MT Department of Labor. Advance registration is required, contact the MSIA office to register or go online at Practicalities-and-Pitfalls-of-the-MSA-Process. 


This Webinar is sponsored by Ritsema Law - contact Danielle Vukonich danielle.vukonich@ritsemalaw.com or at 406-471-4757

And

MES Solutions - contact Tyler Catalano 

tyler.catalano@mesgroup.com or at 206-291-6656


CMS rules changes and new law effective 12/2021 have changed the game with MSA’s as part of a workers’ compensation or liability settlement agreement. 

We will go through: 

  • The elements of an MSA and how they are structured;
  • What does it mean to have an MSA approved by the Center for Medicare Services (CMS) - Do obligations end there?; 
  • Annual reporting requirements and how they work;
  • How a submitted plan can deviate from what is approved;
  • Drugs in an MSA;
  • How CMS has been regulating MSAs; 
  • What happens with an MSA if a settling party has a Medicare Advantage Plan; and
  • How the Medicare Secondary Payor Act applies when settling a liability claim



Practicalities-and-Pitfalls-of-the-MSA-Process,

Paul Sighinolfi, Senior Managing Director of Ametros

February 16 at 10a MST


Contact the MSIA office to reserve your seats or register online at Practicalities-and-Pitfalls-of-the-MSA-Process. Advance registration is required.


Legislative Bills Update


Bills that have been formally introduced have either a House Bill (HB) or Senate Bill (SB) number. Bills that have been requested and/or drafted but not yet introduced are assigned a Legislative Counsel (LC) number. Not all LC bills are introduced. 

HB 178               K. Walsh           R-Twin Bridges              This bill clarifies that injuries which occur off the clock and as the result of social or recreational activity are not compensable. The bill defines that a social or recreational activity is one that includes exercise, pleasure, relaxation or voluntary of optional preparation related to the employment. For example, should a ski area employee injure themselves while skiing off the clock during a work day, they would not be covered by WC in that specific instance. MSIA testified in support of this bill at the House Business & Labor Committee on 1/13/23. The only opponents were the Montana Trial Lawyers Association. The bill passed the House Business & Labor Committee by 18-1 vote and should not have an issue passing the House. 


HB 277                Nicol                   R-Billings                       As drafted this bill would end the MSF payments to the State Auditor’s Office (SAO) to staff two FTE. In the 2015 session, as part of the agreement that the state fund would be regulated by the Commissioner of Securities and Insurance (SAO), that office estimated the need for two additional FTE to regulate MSF. As part of the agreement to pass SB 123 at that time, MSF was required to pay for those FTE, which has been done by intra-agency transfer since then. This bill, as currently drafted, would stop MSF from paying for those FTE. Bill is scheduled for the 1/27/2023 House Business & Labor Committee hearing. MSIA is watching this bill and does not have a position at this time. 


SB 22                  Morigeau          D-Missoula                    This bill is the alleged clean-up of the attempt last session to require the Department of Labor to do more investigation regarding an independent contractor or employee designation rather than rely solely on the presence, or absence of an ICEC. This was negotiated through the Economic Affairs Interim Committee and the language at that time, was acceptable. The Senate Business, Labor & Economic Affairs Committee heard the bill on 1/19/2023 where it became evident more work on bill language is necessary. MSIA is working with business and insurers to address concerns around potential unintended consequences of the current language destabilizing the current conclusiveness of the presence of an Independent Contractors Exemption Certificate (ICEC). Current Montana law is reasonable settled in this area and impacting that law could send the issues back to court. The bill may be scheduled for Committee action next week, but it will likely not see action until amendatory language is agreed upon. MSIA will continue to work with businesses to amend the current language.


SB 126               Hertz                  R-Polson                        This bill re-pays the Montana State Fund those monies taken during the 2017 Special Session to replenish the Fire Fighters funds, and adds interest since that time. This bill was heard in Senate Finance and Claims Committee on Thursday 1/12 with the D’s not buying the need to restore the funds and the more conservative R’s not accepting the financial need for this either. There appears to be no clear leadership position on the legislation as yet. MSIA is watching this bill progress and does not have a position at this time. 


LC 84                  R. Lynch             D-Butte                          This bill has not yet been introduced. This language would add ovarian and testicular cancers to the list of presumptive illnesses covered for firefighters. MSIA opposes this bill. 


LC 677                Nicol                   R-Billings                        Revise workers’ compensation laws to provide freedom of competition. There is no language to this bill title as yet. There is speculaton that this could be a proposal to permit the state of Montana to bid out their workers’ compensation coverage (which is currently required to be provided by MSF) and to create an assigned risk plan, managed by NCCI. MSIA will be monitoring this bill until language is generated.


LC 679                Nicol                   R-Billings                        Revise workers' compensation laws related to illegal aliens. There is no language to this bill title as yet.


LC 985                Hertz                  R-Polson                          There is no language associated with this bill yet. However, MSF is drafting language which would allow it to become a policyholder owned not-for-profit mutual insurance company which retained the responsibility for the market of last resort. The MSF Board of Directors met in a Special Meeting on today, January 20, to provide public policy direction to the staff on this proposal. For the first time, they publically agreed to move forward with this kind of a proposal, in addition to seeking the state’s re-payment of the funds used to balance the firefighting budget in 2017 (see SB 126 below) and require the state to provide the funding for the actuarial estimates of costs for the Old Fund liabilities, currently estimated at between $35 - $50 million. One of the sticking points is how to deal with current MSF employees – the discussion is to permit them to have a choice of staying in the state of Montana systems and benefits or to begin work within the new company. Those employees who choose to stay would then be leased or somehow assigned to the new company and would retain state benefits. These kind of proposals have been successful in other states. MSIA will be monitoring this bill until language is generated. 


LC 986               Hertz                  R-Polson                        There is no language associated with this bill yet. The speculation is this bill will be a vehicle to allow MSF to have limited continued requirements to participate in the state’s IT structure and follow the state’s procurement processes. MSIA will be monitoring this bill until language is generated. 


LC 1724              A. Olsen            D-Missoula                   Provide worker right to choose physician in workers' compensation case. There is no language associated with this bill yet. Representative Olsen has either sponsored or supported this kind of proposal in the past and it is a Democratic leadership supported proposal. MSIA will oppose changing the current law regarding choice of physician. 


LC 1728              A. Olsen             D-Missoula                   Establishes presumption in workers' compensation for COVID-19. There is no language associated with this bill as yet. Representative Olsen has either sponsored or supported this kind of proposal in the past and it is a Democratic leadership supported proposal. MSIA will oppose changing the current law regarding presumptions for injuries or illnesses.


LC3179               Harvey               D-Butte                          This bill draft was the subject of an email on January 18 to membership. This bill has not yet been introduced. The language proposes to increase indemnity benefits from 66.66% of weekly wage to 100% (subject to state average weekly wage maximum). MSIA has contacted NCCI, Department of Insurance, the Department of Labor to help figure out what the potential impact of the change. MSIA has also communicated with business interests about this language and the potential it has to provide more in benefits to get hurt than to show up for work, as benefits are not taxable. Given the sponsor, and the substance of the bill, MSIA does not believe it will get beyond a hearing in committee, should it be introduced. MSIA will oppose this kind of change to the law and will work with others to defeat it. 


See you next week!