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Fiscal Year 2011 Annual Report

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COMMONWEALTH OF MASSACHUSETTS FISCAL YEAR 2011 ANNUAL REPORT THE STATE OF THE MASSACHUSETTS WORKERS’ COMPENSATION SYSTEM MASSACHUSETTS WORKERS’ COMPENSATION ADVISORY COUNCIL JANUARY 2012 MASSACHUSETTS WORKERS’ COMPENSATION ADVISORY COUNCIL THE STATE OF THE MASSACHUSETTS WORKERS’ COMPENSATION SYSTEM FISCAL YEAR 2011 ANNUAL REPORT MASSACHUSETTS WORKERS’ COMPENSATION ADVISORY COUNCIL ADVISORY COUNCIL MEMBERS: *Mickey Long, Chair (AFL ‐ CIO) *Edmund C. Corcoran, Jr., Vice‐Chair (Raytheon) *William T. Corley (IBEW, Local 103) *Stephen P. Falvey (New England Regional Council of Carpenters) *Antonio Frias (S & F Concrete Contractors) Dennis M. Hines (South Shore Hospital) Todd R. Johnson, (T.D. Insurance) *Stephen Joyce (New England Carpenters Labor Management Program) *Teri A. McHugh (Boyle, Shaughnessy & Campo, P.C.) Bernard J. Mulholland (Ford, Mulholland & Moran, P.C.) *David P. Powell (AGC of Massachusetts) *John A. Pulgini (Laborers Union, Local 223) *John Regan (Associated Industries of Massachusetts) EX OFFICIO: Greg Bialecki (Secretary, Executive Office of Housing and Economic Development) Joanne F. Goldstein (Secretary, Executive Office of Labor and Workforce Development) STAFF: William S. Monnin‐Browder (Executive Director) Evelyn N. Flanagan (Special Projects Coordinator) Christina Peura (Legal Intern) * Designates Voting Member ANNUAL REPORT ON THE STATE OF THE MASSACHUSETTS WORKERS' COMPENSATION SYSTEM FISCAL YEAR 2011 I MASSACHUSETTS WORKERS’ COMPENSATION ADVISORY COUNCIL ANNUAL REPORT ON THE STATE OF THE MASSACHUSETTS WORKERS' COMPENSATION SYSTEM • FISCAL YEAR 2011 II M ASSACHUSETTS W ORKERS’ C OMPENSATION A DVISORY C OUNCIL 1 CONGRESS STREET, S UITE 100 MICKEY LONG BOSTON, MASSACHUSETTS 02114-2017 CHAIR (617) 727-4900, EXT. 378 EDMUND C. CORCORAN, JR. DEVAL L. PATRICK VICE-CHAIR GOVERNOR WWW.MASS.GOV/WCAC/ TIMOTHY P. MURRAY WILLIAM S. MONNIN-BROWDER EXECUTIVE DIRECTOR LIEUTENANT GOVERNOR January 11, 2012 His Excellency Deval L. Patrick Governor of Massachusetts State House, Room 280 Boston, MA 02133 Dear Governor Patrick: On behalf of the Massachusetts Workers’ Compensation Advisory Council, I am pleased to present you with the Council’s Fiscal Year 2011 Annual Report: The State of the Massachusetts Workers’ Compensation System. The Advisory Council’s Annual Report provides a detailed analysis of the workers’ compensation system in Massachusetts. It includes an overview and discussion of the operations of the Department of Industrial Accidents (DIA), summaries of legislative initiatives and current statistics related to occupational illness and injury. The Advisory Council also identifies seven specific areas of concern and offers recommendations to enhance the workers’ compensation system. Finally, the report recognizes significant achievements by the DIA and other related agencies and organizations in improving the system. This report and its recommendations are a product of the commitment and contributions made by council members who volunteer their time to analyze a variety of workers’ compensation issues with the ultimate goal of identifying problems and developing solutions. An affirmative vote of at least seven members of the Council is necessary for the Council to adopt a position or otherwise take action. The Advisory Council hopes that this report will serve to highlight the successes of the past year and offer guidance to policymakers looking to improve the system. We look forward to working with you in the future and continuing our shared mission to improve services to injured workers, employers and all participants in the Commonwealth’s workers’ compensation system. Very truly yours, William S. Monnin-Browder Executive Director ANNUAL REPORT ON THE STATE OF THE MASSACHUSETTS WORKERS' COMPENSATION SYSTEM • FISCAL YEAR 2011 III MASSACHUSETTS WORKERS’ COMPENSATION ADVISORY COUNCIL Government Regulation of Workers’ Compensation Executive Branch Office of the Governor Executive Office Executive Office of Executive Office of of Labor & Workforce Health and Human Housing and Economic Development Services Development Department Department Department Department Department Office Office of of of of of of of Consumer Affairs and Unemployment Industrial Career Labor Labor Health Services Business Regulation Assistance Accidents Serives Standards Relations Division of Division Health Care Finance of and Policy Insurance Legislative Branch Appeals Process The Legislature The Supreme Judicial Court The Joint The Joint Committee on Labor & Committee on Massachusetts Workforce Development Insurance Appeals Court Industrial Accident Reviewing Board Oversight Massachusetts Workers' Compensation Industrial Accident Board Advisory Council Note: The Advisory Council monitors and reports on all aspects of the workers’ compensation system. ANNUAL REPORT ON THE STATE OF THE MASSACHUSETTS WORKERS' COMPENSATION SYSTEM • FISCAL YEAR 2011 IV MASSACHUSETTS WORKERS’ COMPENSATION ADVISORY COUNCIL TABLE OF CONTENTS SECTION 1: INTRODUCTION ADVISORY COUNCIL .................................................................................................... 3 ADVISORY COUNCIL STUDIES ............................................................................................................................. 4 FISCAL YEAR 2011 IN REVIEW ...................................................................................... 5 CONCERNS & RECOMMENDATIONS .......................................................................... 11 1. DIA FUNDING .......................................................................................................................................... 11 2. STATUTORY NUMBER OF DIA JUDGES ........................................................................................................... 12 3. THE SECOND INJURY FUND ......................................................................................................................... 14 4. EMPLOYER FRAUD - MISCLASSIFICATION & UNINSURED EMPLOYERS ................................................................... 16 5. EMPLOYEE BENEFITS .................................................................................................................................. 19 6. EMPLOYER RESPONSIBILITIES ....................................................................................................................... 21 7. MEDICAL FEE SCHEDULE TASK FORCE ........................................................................................................... 22 LEGISLATION ............................................................................................................. 24 LEGISLATION ENDORSED BY THE ADVISORY COUNCIL ............................................................................................ 24 PUBLIC HEARING ON WORKERS’ COMPENSATION LEGISLATION .............................................................................. 24 SECTION 2: OVERVIEW PROVISIONS TO RESOLVE DISPUTES .......................................................................... 29 WORKERS’ COMPENSATION CLAIMS ................................................................................................................. 29 DISPUTE RESOLUTION PROCESS ........................................................................................................................ 30 LUMP SUM SETTLEMENTS ............................................................................................................................... 31 ALTERNATIVE DISPUTE RESOLUTION MEASURES .................................................................................................. 31 SUMMARY OF BENEFITS ........................................................................................... 33 INDEMNITY AND SUPPLEMENTAL BENEFITS ......................................................................................................... 34 ATTORNEY’S FEES .......................................................................................................................................... 35 SECTION 3: WORKPLACE INJURY AND FATALITY STATISTICS OCCUPATIONAL INJURIES AND ILLNESSES ................................................................. 39 INJURY AND ILLNESS INCIDENCE RATES ............................................................................................................... 39 INCIDENCE RATES BY REGION ........................................................................................................................... 40 INJURIES & ILLNESSES BY OCCUPATION .............................................................................................................. 40 INCIDENCE RATES BY INDUSTRY ........................................................................................................................ 41 OCCUPATIONAL FATALITIES ...................................................................................... 42 WORKPLACE FATALITIES IN MASSACHUSETTS ...................................................................................................... 42 ANNUAL REPORT ON THE STATE OF THE MASSACHUSETTS WORKERS' COMPENSATION SYSTEM • FISCAL YEAR 2011 V MASSACHUSETTS WORKERS’ COMPENSATION ADVISORY COUNCIL SECTION 4: DISPUTE RESOLUTION CASES FILED AT THE DIA ............................................................................................ 45 CONCILIATION .......................................................................................................... 46 THE CONCILIATION PROCESS ...........................................................................................................................
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