REGULATORY ANALYSIS
FOR AMENDMENTS TO RULE 1,5,6,7,8,9
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 proposed rule, economic or otherwise, upon the classes of affected persons.

The proposed rule amendments clarify the workers’ compensation rules of procedure and are intended to streamline the processing of claims.  This is intended to reduce litigation and promote compliance.  

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

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

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

The adopted changes reflect numerous corrections to grammar, spelling and formatting.  There are no costs to these changes, and inaction results in the rules being unclear.  In addition, there are changes included to harmonize the rules with recent statutory changes.  These updates clarify the responsibilities of parties to a workers’ compensation claim and will increase compliance.  Inaction would result in greater confusion regarding the system.  The substantive changes in the adopted rules require insurers to attach narrative reports to final admissions of liability.  These reports are already required to be completed, so this change imposes no new costs.  It does provide better information to claimants and will reduce unnecessary litigation.  

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

Because of the nature of these proposed 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