A proposed bill that would have required insurance companies selling workers' compensation insurance in Utah to maintain an office in Utah has been watered down somewhat by the Workers' Compensation Advisory Council.
Instead of requiring them to maintain an office in the state, the council voted to allow the companies to have a designated agent with the authority to adjust a case involving an injured worker's benefits and write checks for payment of those benefits.The language finally agreed upon by the council also would require the companies to provide an injured worker's records upon request. The language is contained in a workers' compensation managed health care bill pushed by a majority of the council members in which hospitals are included for regulation by the State Industrial Commission.
In presenting the proposed bill to the council, Commission Chairman Stephen M. Hadley said the commission has had problems in the past because of injured workers being unable to contact insurance companies to solve disputes.
Joyce Sewell, director of the commission's Industrial Accidents Division, said that in the past two years many injured workers haven't been aware their employer's insurance company moved out of the state. She said adjusters in other states aren't familiar with Utah's workers' compensation law and the length of time for a response by the insurance company to the injured worker is getting longer.
Douglas Sonntag, a representative of the American Insurance Association, argued against each insurance company being required to have an office in Utah, saying that modern communications of the telephone, fax machines and Federal Express compensate for not having a local office.
He said the requirement would be costly to companies that have tried to consolidate some services to save money. He agreed with the requirement to have a local adjuster with the authority to write checks.
Stuart Poelman, an attorney representing several insurance companies, agreed with Sonntag, saying 800 telephone numbers make it easy for an injured worker to contact an insurance company.
Patrick J. O'Connor, president of the Injured Workers Association of Utah, disagreed, saying the list of companies outlined by Poelman as not having offices in Utah are the worst offenders when it comes to responding to an injured worker's needs.
Commissioner Tom Carlson said the insurance companies "should be up front" and solve the problems of injured workers early because the company probably will spend more money the longer a request takes.
The bill, that would require the commission to regulate all health care providers, including hospitals, will go the Legislature in the current session. The Utah Hospital Association argued against the regulation when the council considered the provision and is expected to oppose the measure during the legislative session.