REGULATORY ANALYSIS
FOR PROPOSED AMENDMENT TO
 THE WORKERS' COMPENSATION RULES OF PROCEDURE
7 CCR 1101-3

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

The classes of persons affected by the rule are:  insured employers, insurance carriers that write workers’ compensation coverage in Colorado, and the Colorado operations of employers who self-insure for their workers’ compensation risk in Colorado.

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

This rule amendment updates the single life expectancy table.  The life expectancy table will be used by stakeholders in the workers’ compensation system to aid in settlement discussions as it will set a uniform standard when discussing the present value a claim.  The life expectancy table will also be used in calculating lump sum payments.  

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

There is no cost to the agency, or any other agency, for this rule change.    

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

Pursuant to legislation adopted during the 2010 legislation session, the Director is required by statute to adopt a single life expectancy table on July 1 of each even-numbered year, beginning July 1, 2010.  No party is required to settle a claim, so the probable costs of this amendment will have little if any impact on either persons affected or any agencies.  The benefit of this amendment will be to set a uniform standard when parties discuss the value of a claim during settlement discussions.  Inaction would result in the Division being out of compliance with a statutory mandate. 

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

There are no less costly or less intrusive means to achieve the rule’s purpose. 

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

Different life expectancy tables were considered.  However, since legislation requires adoption of a life expectancy table, no alternative method was feasible. 

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