PROPOSED STATEMENT OF BASIS AND PURPOSE FOR
AMENDMENTS TO THE WORKERS’ COMPENSATION RULES OF PROCEDURE, 7 CCR 1101-3

BASIS:  §8-47-107, C.R.S. provides the Director of the Division of Workers’ Compensation with authority to adopt and amend proper rules and regulations to govern the proceedings and hearings of the Division. 

PURPOSE:  Create a rule to implement and clarify Senate Bill 08-241.  The legislation addresses the issue of reducing benefits due to apportionment as a result of previous injuries.  The standard for apportioning benefits will be different for injuries that occur on or after July 1, 2008 as a result of this legislation.

The rule addresses the following subjects:

Rule 5-5    Admissions of Liability

For injuries that occur on or after July 1, 2008, adds a subsection which emphasizes language in the statute that a carrier may not reduce a claimant’s temporary total, temporary partial or medical benefits because of a prior injury, whether work-related or non-work-related; and requires that a copy of the previous award or other documentation supporting the apportionment be attached to the admission if permanent benefits are reduced based on a prior injury. 

Rule 12-3   Apportionment

Provides guidance for physicians who are performing impairment ratings pursuant to the Colorado Workers’ Compensation Act.  Recognizes that the standards for when benefits may be reduced due to apportionment are different based on whether the injury occurred on or after July 1, 2008.  Physicians are to conduct impairment ratings in essentially the same manner regardless of the date of injury, and the insurer must apply the proper standard and apportion benefits only when proper under the appropriate version of the statute.  The rule provides guidance to an insurer on when and how it may apportion benefits.

Pursuant to §24-4-103(4)(b), C.R.S., the Director finds that: 1) there is a demonstrated need for the rule amendments; 2) the proper statutory authority exists for this regulation; 3) to the extent practicable, the rules are clearly stated so that their meaning will be understood by any party required to comply with the regulation; 4) the rules do not conflict with other provisions of law; and 5) the duplicating or overlapping of the regulation is explained by the agency proposing the rules.

Bob Summers							06/19/2008
Bob Summers							Date
Director, Division of Workers’ Compensation