Menu Close

Author: WorkCompAcademy

DWC Gets Tougher On Opoids In Proposed Guideline

The DWC has issued a notice of public hearing for the Medical Treatment Utilization Schedule (MTUS) proposed regulations. The proposed rulemaking updates the Chronic Pain Medical Treatment Guidelines and adopts Opioids Treatment Guidelines to the MTUS. A public hearing on the proposed regulations has been scheduled at 10 a.m., September 1, in the auditorium of the Elihu Harris Building, 1515 Clay Street in Oakland. Members of the public may also submit written comments on the regulations until 5 p.m. that day.

“California continues to be on the forefront of evidence-based medicine to treat injured workers, and these regulations will help workers obtain appropriate care,” said Christine Baker, Director of the Department of Industrial Relations (DIR). DWC is a division of DIR.

The proposed Chronic Pain Medical Treatment Guidelines are based on a reformatted version of the April 6, 2015 version of the Work Loss Data Institute’s Official Disability Guidelines (ODG) Treatment in Workers’ Compensation – Pain (Chronic) chapter. This Guideline is an amazing 1062 pages in length and lists typical chronic pain treatment possibilities alphabetically. For example, on page 40 the Guideline lists “Cannabinoids.”  As with the previous guideline, this “treatment” is “Not Recommended for Pain” thus the DWC is sticking to its prior finding on this issue.

The proposed Opioids Treatment Guidelines were developed by DWC based on evidence-based guidelines available as of April 2014 and supplemented with high-level evidence from high-quality studies. The Opioids Treatment Guidelines are divided into two parts: Part 1 contains the executive summary, abbreviated treatment protocols, and complete recommendations, while Part 2 contains supplemental information. Much of the Opioids Treatment Guideline has stronger language than before, with the word “may” appearing infrequently seeming to make tools like use of the CURES database and urine testing mandatory.

“DWC is concerned about workers who suffer when chronic pain is inadequately treated or when opioid medications are improperly managed,” said DWC Executive Medical Director Dr. Rupali Das. “These are separate, but often related, issues of major public health concern that can lead to devastating consequences, including prolonged disability and delayed recovery.” She added that “we have proposed two complimentary guidelines that provide evidence-based best practices for multidisciplinary approaches to managing chronic pain as well as factors to consider for safe and effective prescribing of opioids for acute, subacute, perioperative, and chronic pain.”

The proposed changes to the MTUS Chronic Pain Medical Treatment Guidelines are set forth in section 9792.24.2 of Title 8 of the California Code of Regulations and the proposed addition of the MTUS Opioids Treatment Guidelines is set forth in section 9792.24.4 of the California Code of Regulations.

DWC will consider all public comments, and may modify the proposed regulations for consideration during an additional 15-day public comment period. The notices of rulemaking, text of the regulations, and the initial statement of reasons can be found on the MTUS rulemaking page.

DWC Posts New Regs on ICD-10 Transition

The Department of Industrial Relations (DIR) and its Division of Workers’ Compensation (DWC) posted minor amendments to draft regulations regarding transitioning the California workers’ compensation system from the ICD-9 system of diagnosis to the ICD-10 system of diagnosis, effective October 1, 2015. Comments on the revised draft regulations will be received until 5 p.m. on Monday, August 3, 2015.

ICD-10 is the 10th revision of the International Statistical Classification of Diseases and Related Health Problems (ICD), a medical classification list maintained by the World Health Organization (WHO). The deadline for U.S. providers to begin using Clinical Modification ICD-10-CM for diagnosis coding and Procedure Coding System ICD-10- PCS for inpatient hospital procedure coding is October 1, 2015. In preparation for this deadline, it is necessary for DIR and DWC to update regulations and forms to refer to ICD-10 instead of ICD-9.

Regulations that are being updated include 8 C.C.R. sections 9770, 9785, 9792.5.1, 14003, 14007 and DWC’s Medical Billing and Payment Guide. Forms affected include 5021 (Doctor’s First Report of Occupational Injury or Illness), PR-2 (Primary Treating Physician’s Progress Report), PR-3 and PR-4 (Primary Treating Physician’s Permanent and Stationary Reports).

The notice and text of the regulations can be found on the proposed regulations page.

Cheerleaders Cheer Over New Labor Law

Governor Brown has signed a new labor code that requires that the provisions of state law that govern employment, including the Labor Code, the Unemployment Insurance Code, and the California Fair Employment and Housing Act, would require a cheerleader who is utilized by a California-based professional sports team during its exhibitions, events, or games to be deemed an employee.

The new law, Labor Code section 2754, will only apply to a “California-based team” which means by the statutory definition “a team that plays a majority of its home games in California.” It also only applies to a “Professional sports team” which means a team at either a minor or major league level in the sport of baseball, basketball, football, ice hockey, or soccer.

In 2014, the Oakland Raiders were sued by a group of current and former cheerleaders who alleged that the Raiders refused to pay minimum wage or overtime, made unlawful deductions, and also refused to provide meal and rest breaks. According to the filing, Raiderettes (the name of the cheerleading squad) were paid a flat rate of $125 per game, irrespective of hours worked. The filing also noted mandatory charity appearances for the Raiderettes, for which no payment at all was received by the cheerleaders. Similar lawsuits were filed against the Tampa Bay Buccaneers, the New York Jets, the Buffalo Bills, and the Cincinnati Bengals.

Attorneys for the Raiderettes and the team agreed to a complex settlement formula that will cover any cheerleader who has worked for the team since the 2010-11 season. Cheerleaders will receive $2,500 in back pay and penalties for the 2013-14 season, plus $6,000 in back pay and penalties for each of the three seasons before that.

A year ago, the Raiders tacitly admitted their sins and offered their new cheerleading squad a contract that nearly tripled their pay. Instead of earning only $125 per game in a single paycheck delivered at the end of the season, Raiderettes will earn $9 an hour, plus overtime, for the estimated 350 hours each cheerleader puts in each year, including rehearsals, practices and mandatory community and charity appearances. Their annual compensation will rise from about $1,250 to about $3,200. Raiderettes will also be reimbursed for business expenses and mileage, which they had to cover themselves before. They will also receive paychecks every two weeks, per state law, rather than one lump sum at season’s end.

Teams exercise considerable control over cheerleaders. They are required to attend and participate in practices, mandatory rehearsals, fittings, preparations, drills, photo sessions, meetings, and workouts. Cheerleaders are required to finance their business expenditures, including travel and investment in their physical appearance by purchasing required cosmetics, in the normal course of their cheerleading duties.

Cheer athletes practice their routines at least 2 to 5 times a week. They must get physically fit in order to carry out intense dance routines and stunts in cheerleading. Cheerleaders are featured prominently in advertising and game-day coverage, especially leading in and out of every commercial break on the nationally broadcasted television programs. Prior to each sports season, selected cheerleaders have training camps and practice, photo shoots and swimsuit calendars obligations. Throughout the year, they have non-game day annual responsibilities, such as guest appearances at schools, charity events, or conferences

Proponents of the law argued that under the new law, professional sport cheerleaders would be guaranteed a legal wage for attending and participating in team practices, rehearsals, preparations, meetings and required workouts. In addition, they would also be covered for all required appearances at corporate, community and charity events. There was no official opposition to the new law included in the legislative record.

Fear of Being Fired Adversely Effects Claim Outcomes

Twelve new state studies from the Workers Compensation Research Institute (WCRI) aim to help CFOs and other stakeholders identify ways they can improve the treatment and communication an injured worker receives after an injury, leading to better outcomes at lower costs.

The studies, as summarized on the CFO website, are based on interviews with 4,800 injured workers from across 12 states who suffered a workplace injury in 2010 and 2011 and received workers’ compensation income benefits. The 12 states were Arkansas, Connecticut, Indiana, Iowa, Massachusetts, Michigan, Minnesota, North Carolina, Pennsylvania, Tennessee, Virginia, and Wisconsin. The surveys were conducted during February through June in 2013 and 2014 – on average, about three years after these workers sustained their injuries.

The research found that a worker’s fear of being fired after an injury had a large and pervasive effect on costs and worker outcomes, like when the worker returns to work. The fear of being fired may arise out of the relationship between the worker and the supervisor being one of high or low trust. If the relationship is low trust, the worker is more likely to fear firing when injured.

To describe the level of trust or mistrust in the work relationship, workers were asked to agree with the statement “I was concerned that I would be fired or laid off.” Workers were given four possible answers – strongly agree, somewhat agree, somewhat disagree, and strongly disagree. Depending on the state, 18% to 33% of workers strongly agreed that they feared being fired when injured.

Overall, workers who were strongly concerned about being fired after the injury experienced poorer return-to-work outcomes than workers without such concerns. Across all 12 states, 23% of those concerned about being fired reported that they were not working at the time of the interview – double the rate observed for workers without such concerns. The following are other findings from workers who were strongly concerned about being fired.

1) Concerns about being fired were associated with a four-week increase in the average duration of disability.
2) Workers who were strongly concerned about being fired had higher rates of dissatisfaction with care (21% were very dissatisfied with care) when compared with workers who were not concerned about being fired after the injury (9%).
3) Workers concerned about being fired were much more likely to report problems with access to care. Among workers concerned about being fired, 23% reported big problems getting the services they or their provider wanted. The rate was double the 10% among workers not concerned about being fired.
4) Sixteen percent of workers strongly concerned about being fired reported large earnings losses at the time of the interview predominantly due to injury, compared with 3% of workers not concerned about being fired.

Another CWCRI study published several years ago on attorney involvement looked at why injured workers hired attorneys. The character of the employment relationship, for example, was a factor for the 23% who strongly agreed that they hired attorneys because they feared being fired or laid off. Fifteen percent also strongly agreed that they needed attorneys because their employer could perceive their claims as illegitimate.,

Businesses Install Surveillance Cameras to Catch Comp Fraud

A new poll conducted by Employers Insurance found that more than one in 10 small business owners (13 percent) are concerned that one of their employees would commit workers’ compensation fraud by faking an injury or illness in order to collect benefits. It also found that nearly one-quarter of small business owners (24 percent) have installed surveillance cameras to monitor employees on the job and that one in five (21 percent) business owners feel unprepared or unsure of their ability to identify workers’ compensation fraud. .

The Insurance Journal reports that Ranney Pageler, vice president of fraud investigations at Employers, said the message of protecting your business from fraud resonates more loudly with those who have already been ripped off and seen their worker’s comp premiums rise. “You may have 90 percent of policyholders who aren’t paying attention,” he said, adding that for those who have been burned, “Boy, that is their hot button.” It’s a hot button for some agents too.

In the last 18 months Employers had three cases in California where workers’ comp fraud was proven because of videos, which showed the workers staging their injuries, according to Pageler. Two cases were in restaurant kitchens, and the other was in a warehouse, he said. The videos show the workers doing things like rearranging furniture or objects, kicking the objects, then screaming out in pain and getting hauled off in an ambulance. “That proves they weren’t injured, that they staged an accident,” he said.

By his account all three cases were investigated, criminal complaints were filed and convictions resulted in merely a matter of months – hyper-speed for the state’s unwieldy system. “All were decided well within a calendar year,” Pageler said. “What that (video) did was keep that claim from ever showing up on the policyholder’s experience rating.”

The reason there was no impact on the rating, or a corresponding premium increase, was because the cases were handled quickly, and total fraud was easily proved, he said. Unlike in partial fraud, a total fraud claim can be entirely removed retroactively with no impact to the rating.

For the survey, interviews were completed with a nationally representative sample of 501 small businesses that have fewer than 100 employees. Data were weighted by number of employees, region and industry to reflect the proportion of small businesses in the United States. The margin of error is +/-4.4%. Fieldwork was conducted from May 14 and 29, 2015.

Cal/OSHA Fines Petaluma Employer for Fatality

Cal/OSHA cited Maggiora and Ghilotti Inc., a Bay Area engineering and construction company, following an investigation into a fatal accident at a Petaluma construction site in April.

28-year-old Jared Overfield from Novato was killed when a 40-foot concrete-coated steel pipe being unloaded from a forklift rolled down a slope and crushed him. He had worked for several years as a pipe layer for the San Rafael-based construction company.

The accident occurred around 7 a.m. on April 15 near Highway 101, where Overfield was working on a construction site as part of the Highway 101 widening project. The company was replacing an old water pipe. The employee was working with a forklift operator to unload and transport the new pipe down a sloping dirt road. The pipe weighed approximately 8,000 pounds and was not secured to the forklift; it was unloaded directly to the ground without any chocks or barrier to prevent it from moving. The worker was facing the pipe when it slid off the forks, rolled over him and was finally stopped by a chain link fence.

Cal/OSHA’s American Canyon office issued three citations to Maggiora and Ghilotti for failing to recognize and plan for the hazard of transporting the steel pipe, for failing to survey and plan for the hazards of uneven ground, and for not securing the pipe during transport. The three citations total $38,250.

KTVU looked into the company’s records and over the last 10 years found five Cal/OSHA inspection reports with three violations. A 2009, report showed two violations were listed as serious.

The company is involved in both public and private work construction in the Northern Bay Area since 1964.

Excess Carrier Not Bound by WCAB Decision

General Reinsurance issued an excess insurance policy to San Francisco Bay Area Rapid Transit District (“BART”), which is a self-insured employer for workers’ compensation. This dispute arises out of a multiple myeloma workers’ compensation claim of a former BART employee, Michael Gonsolin who worked as a BART police officer. BART settled the case with Gonsolin at the WCAB which entered a Partial Order Approving Compromise and Release with Open Medical Award. One week after the settlement was approved BART sent a Notice of Claim to General Reinsurance, its excess carrier asking them to foot part of the bill.

BART contended that General Reinsurance was obligated to pay the claim because, as stipulated by the parties and approved by the WCAB, Gonsolin’s injury occurred during the policy period, and BART has reached its retention limit triggering General Reinsurance’s coverage. General Reinsurance contends that it has no obligation to pay because Gonsolin’s injury in fact occurred after its policy had ended.

In Phase One of the federal court trial, the Court had to decide whether the parties can litigate the date of injury; that is, whether for purposes of the application of the excess policy, General Reinsurance is bound by the decision of the WCAB. In the case of BART v General Reinsurance (Case No. 14-cv-01866-J) the Court held that it indeed had jurisdiction to adjudicate the correct date of injury, and that General Insurance was not bound by any determination at the WCAB.

Issue preclusion may operate as a bar to litigation of an issue that was decided in an earlier administrative proceeding “if the agency, acting in a judicial capacity, resolved disputed issues of fact properly before it, in a proceeding in which the parties had an adequate opportunity to litigate the factual issues.” Issue preclusion does not apply here because General Reinsurance was not in privity with BART in the workers’ compensation proceedings.”Plainly, General Reinsurance was not a party to the earlier proceedings.”

Phase Two of this case is set for bench trial on 2/1/2016 08:30 AM before Magistrate Judge Jacqueline Scott Corley. Clearly this case points to the need for an employer to have a strategy that would involve and bind the excess carrier to the outcome of the underlying WCAB case in order to avoid the double bind that seems to be developing in this case.

National Safety Council Targets Workplace Opoid Abuse

The National Safety Council is calling on employers to develop workplace policies around the use of opioid prescription painkillers after reviewing research and court cases showing the negative impacts of these medicines on employee safety and worker’s compensation costs. Many workers who have taken opioid painkillers following on-the-job injuries have become addicted, suffered additional injuries or fatally overdosed. As a result, courts have ordered employers and worker’s compensation insurance carriers to pay for detoxification, medication-assisted treatment and death benefits to surviving family members.

The findings and synopses of recent court cases are detailed in the Council’s new report, Prescription pain medications: A fatal cure for injured workers.

“Employers have a moral and legal responsibility to protect their employees,” said Deborah A.P. Hersman, president and CEO of the National Safety Council. “Addressing the use and abuse of prescription painkillers is as important as identifying drug and alcohol abuse in the workplace.”

Workers who use opioid painkillers for more than a week to treat on-the-job injuries have double the risk of being disabled one year later.[i] Worker’s compensation claims also skyrocket. The average lost time worker’s compensation claim for workers using opioid painkillers can total as much as $117,000 – 900 percent higher than the cost for workers who do not take opioid painkillers.[ii]

To help protect injured workers and mitigate liability, the Council recommends employers:

1) Educate workers about the risks of opioid painkillers
2) Work with insurance carriers to identify inappropriate opioid painkiller prescribing and adopt procedures to manage worker’s opioid use
3) Ensure medical providers follow prescribing guidelines and use state Prescription Drug Monitoring Programs, which track prescribing history
4) Provide supervisor education focused on identifying impaired employees
5) Expand drug testing programs that include testing for all common opioids
6) Evaluate employee assistance programs and make sure they include access to treatment

Employers are also encouraged to download the free Prescription Drug Employer Kit for resources and tips to develop policies and manage opioid use at work.

Founded in 1913 and chartered by Congress, the National Safety Council is a nonprofit organization whose mission is to save lives by preventing injuries and deaths at work, in homes and communities, and on the road through leadership, research, education and advocacy.

FDA Strengthens NSAID Label Warning

An aggravation of a medical condition as a result of treatment for an industrial injury can become a compensable consequence claim. Industrial injuries resulting in pain and inflammation are commonly treated with NSAID pain medications. But now the U.S. Food and Drug Administration (FDA) is strengthening an existing label warning that non-aspirin nonsteroidal anti-inflammatory drugs (NSAIDs) increase the chance of a heart attack or stroke.

“Based on our comprehensive review of new safety information, we are requiring updates to the drug labels of all prescription NSAIDs. As is the case with current prescription NSAID labels, the Drug Facts labels of over-the-counter (OTC) non-aspirin NSAIDs already contain information on heart attack and stroke risk. We will also request updates to the OTC non-aspirin NSAID Drug Facts labels.”

NSAIDs are widely used to treat pain and inflammation. NSAIDs are available by prescription and OTC. Examples of commonly used over-the-counter NSAIDs include ibuprofen (Motrin, Advil) and naproxen (Aleve); celecoxib (Celebrex), diclofenac (Cataflam, Voltaren) are prescription NSAIDs. Aspirin is also an NSAID, but it does not pose a risk of heart attack or stroke and is not covered by this new warning.

The risk of heart attack and stroke with NSAIDs, either of which can lead to death, was first described in 2005 in the Boxed Warning and Warnings and Precautions sections of the prescription drug labels. Since then, the FDA has reviewed a variety of new safety information on prescription and OTC NSAIDs. However, the FDA was not able to determine that the risk of any particular NSAID is definitely higher or lower than that of any other particular NSAID

The risk of heart attack and stroke achieved special notoriety with rofecoxib (Vioxx), a type of NSAID called a COX-2 inhibitor. It caused as many as 140,000 heart attacks in the U.S. during the five years it was on the market (Vioxx was removed from the market in 2004). The regrettable experience with Vioxx raised awareness about the cardiovascular risk of NSAIDs, and led to further studies showing that the risk is not limited to Vioxx but is associated with all NSAIDs.

NSAIDs can increase the risk of heart attack or stroke in patients with or without heart disease or risk factors for heart disease. A large number of studies support this finding, with varying estimates of how much the risk is increased, depending on the drugs and the doses studied. There is also an increased risk of heart failure with NSAID use.

This new FDA warding joins a list of two of the more common potential risks and complications of NSAIDs. Kidney damage and stomach problems. Most types of NSAIDs have a variety of other potential risks and complications associated with them. While most side effects are rare, some can be serious and even potentially fatal, so it is important for patients to remain aware of them and under supervision by a health professional.

Feds Want More Pills – Faster

The U.S. House of Representatives on Friday passed a sweeping bill to speed new drugs to the market after lawmakers defeated last-minute amendments that threatened to derail it. According to the report in Reuters Health, the House voted 344 to 77 in favor of the 21st Century Cures Act, which would require the FDA to streamline its drug approval process, consider more flexible forms of clinical trials and incorporate patient experience into its decision-making process.

The bill was developed by the House Energy and Commerce Committee and spearheaded by Republican Fred Upton and Democrat Diana DeGette. A similar bill in the Senate is expected to be voted on before the end of the year. The program would be paid for with the sale of 80 million barrels of crude oil from the Strategic Petroleum Reserve (SPR) over eight years.

“The strong bipartisan support for the Cures Act in the House, together with broad support from the Obama Administration, are strong indications that the Senate will approve the Cures Act with small changes,” said Ross Muken, an analyst at Evercore ISI, in a research note.

One challenge may come from Republican Senator Lisa Murkowski, head of the Senate Energy Committee, who has said she opposes the use of SPR sales to fund anything other than national energy security.

The House bill would increase funding to the National Institutes of Health by nearly $8.75 billion over five years and increase funding to the Food and Drug Administration by $550 million over the same period.

The bill would overhaul the FDA’s regulatory framework for approving drugs. It would create incentives for companies to develop drugs for rare diseases. It would allow certain antibiotics to be approved based more limited testing and establish other measures to shorten the drug development time.