REGULATORY ANALYSIS
FOR AMENDMENTS TO RULE 3-1 AND 3-6, AND RULE 5-4 OF THE 
 WORKERS' COMPENSATION RULES OF PROCEDURE
7 CCR 1101-3

1.	Description of classes of persons who will be affected by the rules, including classes that will bear the costs of the rules and classes that will benefit from the rules.

The classes of persons affected by the rules are all persons and entities involved in the Colorado Workers’ Compensation system.  This includes, but is not limited to, injured workers, health care providers, insurance carriers, third party administrators and employers.

2.	Description of the probable quantitative and qualitative impact of the adopted rules, economic or otherwise, upon the classes of affected persons.

These rules revised, updated or added to the current rules of procedure.  The main purpose was to update and clarify procedures.

Rule 3 amendments clarify that the time period begins to run on the date that a Notice is sent to an employer and refers to a more specific section of the rule to determine Class I violations. The amendments also clarify insurers’ responsibilities when reporting coverage information to the Division via NCCI.  The final amendment was the addition of a subsection to Rule 5 concerning the exchange of information related to Medical Reports and Records.  The updates and amendments to the rules should increase efficiency and assist persons in implementing required actions.   

3.	Probable costs to the agency and other agencies of the implementation and enforcement of the adopted rules and any anticipated effect on state revenues.

No impact on costs or revenues is anticipated as a result of the rule changes.  

4.	Comparison of the probable costs and benefits of the adopted rules to the probable costs and benefits of inaction. 

The addition of the new subsection to Medical Reports and Records will allow the parties to request and exchange information that will assist in processing claims without the need for additional litigation.  The amendment concerning the date a document is sent impacts a specific part of the rule for Class I violations.  This amendment is for clarification purposes only and will have no cost impact on the system as a whole.  Similarly, the third amendment is not substantive and clarifies responsibilities regarding the reporting of coverage information.  Since the rule amendments clarify procedures they should decrease uncertainty and increase efficiency.  The addition of the new subsection will reduce overall costs by allowing the exchange of important information without the need to file motions. Not taking this action would have resulted in missed opportunities to clarify processes, reduce costs and increase efficiency.

5.	Determination of whether there are less costly or less intrusive methods for achieving the purpose of the rules.

There are no known less costly or less intrusive means.   

6.	Description of any alternative methods for achieving the purpose of the proposed rules that were seriously considered by the agency and the reasons they were rejected in favor of the adopted rules.

Because of the nature of these rule amendments no alternative methods were seriously considered. 

Copies of the Notice of Public Hearing were provided to the:

Colorado Association of School Boards, 
Colorado Counties, Inc.
Colorado Municipal League
Special District Association of Colorado
Colorado Health and Hospital Association
Colorado Association of Commerce and Industry
Mountain States Employers Council
Colorado Self-Insurers Association