MINUTES OF THE
SENATE COMMITTEE ON COMMERCE AND LABOR
Sixty-seventh Session
February 23, 1993
The Senate Committee on Commerce and Labor was called to order by Senator Ann O'Connell, at 5:00 p.m., on Tuesday, February 23, 1993, in Room 227 of the Legislative Building, Carson City, Nevada. Exhibit A is the Meeting Agenda. Exhibit B is the Attendance Roster.
COMMITTEE MEMBERS PRESENT:
Senator Randolph J. Townsend, Chairman
Senator Sue Lowden, Vice Chairman
Senator Ann O'Connell
Senator Mike McGinness
Senator Raymond C. Shaffer
Senator Leonard V. Nevin
Senator Lori L. Brown
STAFF MEMBERS PRESENT:
Linda Krajewski, Primary Secretary
Brian Davie, Senior Research Analyst
Frank Krajewski, Senior Research Analyst
OTHERS PRESENT:
Mark Habersack, Compensation and Benefits Specialist, Harrah's, Las Vegas
Joe Lawrence, Managed Care Consultants
Ray Badger, Lobbyist, Nevada Trial Lawyers Association
Jack Jeffrey, Lobbyist, Nevada Building and Construction Trades Council
Barbara Scarborough, Compensation and Benefits Specialist, Mirage Hotel and Casino, Las Vegas
Bob Ostrovsky, Lobbyist, Nevada Resort Association
Arthur Busby, Benefits Director, Horseshoe Club Casino, Las Vegas
Charles Nort, Lobbyist, Nevada Administrators
Jim Jeppson, Administrator, Division of Industrial Insurance Regulation, Department of Industrial Relations, State of Nevada
Don Jayne, General Manager, Nevada State Industrial Insurance System
Paul Aakervik, President, Aakervik and Associates
Michael McGroity, Attorney
Brian Harris, Attorney, Governor's Office, State of Nevada
Senator O'Connell opened the hearing, and invited Marc Habersack, Harrah's, Las Vegas, to comment on the managed care organization with which his company contracted.
Mr. Habersack said Managed Care Consultants had handled the medical benefits for Harrah's employees for 3 years. They had been handling the workers' compensation claims for Harrah's for about
1/2 years. Mr. Habersack was very pleased with the services Managed Care Consultants provided.
Joe Lawrence, Managed Care Consultants, explained to the committee the procedures his organization used for processing workers' compensation claims.
Senator Lowden asked what the procedure was when an employee wanted to go to a doctor who was not on the company's list of providers. Mr. Lawrence said since they did not have a "formal obligative network" they focused on the course of treatment the physician recommended. He said they had seen a great deal of cooperation.
Senator O'Connell introduced Exhibit C, and asked for an explanation of the Harrah's light duty program. Mr. Habersack said in the early stages of their program they received resistance, and were told there just was not light duty work for the injured worker. He explained they had then reassigned the worker to the personnel department, and found a light duty position in another department. The department that received the employee basically "got him for free," and the department the employee was supposed to be working in was charged the wages and benefits of the employee. The resistance soon disappeared.
Ray Badger, Lobbyist, Nevada Trial Lawyers Association, suggested using some of the language in the current Department of Industrial Relations (DIR) regulations. He stated there was a salary requirement which would prevent an employer from offering an employee minimum wage, who had been making $20 per hour before he was injured. It would also cover things like not drastically changing locations.
Jack Jeffrey, Lobbyist, Nevada Building and Construction Trades Council, agreed with Mr. Badger's testimony.
Barbara Scarborough, Compensation and Benefits Specialist, Mirage
Hotel and Casino, Las Vegas, testified the most important thing, in her opinion, was the need to establish temporary light duty, as opposed to permanent light duty.
In response to a question from Senator Lowden, Ms. Scarborough stated they had not had very good luck with vocational rehabilitation, and preferred to find a position the employee was capable of in-house.
Senator Lowden pointed out that would be much easier to do in a large company.
Bob Ostrovsky, Lobbyist, Nevada Resort Association, objected to paragraph 4 of Exhibit C, saying it did not motivate an employer to get an injured worker back to full duty. He suggested adding language regarding subsequent injury at the new job. Mr. Ostrovsky also stated the Americans with Disabilities Act would cover workers who were permanently injured.
Arthur Busby, Benefits Director, Horseshoe Club Casino, Las Vegas, explained his company's methods of placing permanently injured employees.
Charles Nort, Lobbyist, Nevada Administrators, stated there can be problems returning permanently injured workers to work.
Jim Jeppson, Administrator, Division of Industrial Insurance Regulation, Department of Industrial Relations, State of Nevada, said the proposed changes to the regulations on vocational rehabilitation might work with regard to light duty work.
Mr. Badger said the Consensus Group had addressed the problem of temporary versus permanent disability.
Don Jayne, General Manager, Nevada State Industrial Insurance System, said the system supported the concept of pooling for returning injured employees to light duty. He stated Exhibit C looked like a good beginning framework.
Paul Aakervik, President, Aakervik and Associates, explained to the committee his company's definition of temporary light duty.
Michael McGroity, Attorney, stated paragraph 4, Exhibit C, imposed an administrative burden on all parties involved.
As there was no further business, the hearing was adjourned at 6:05 p.m.
RESPECTFULLY SUBMITTED:
Denise Pinnock,
Committee Secretary
APPROVED BY:
Senator Randolph J. Townsend, Chairman
DATE:
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Senate Committee on Commerce and Labor
February 23, 1993
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