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. §8-43-404(5)(a)(IV)(E) requires the Division to adopt rules in this specific area.

PURPOSE:  Create a rule to implement and clarify House Bill 07-1176 that addresses the issue of injured workers and the initial selection of authorized treating physicians.

The proposed rule addresses the following subjects:

Rule 8    Authorized Treating Physician
The Workers’ Compensation Act requires an employer or insurer to provide a list of at least two physicians or medical providers to an injured employee who may select a physician to attend to their injury(ies).  The Act further allows an injured employee to request and obtain a one-time change in authorized treating physician by providing notice and meeting certain requirements.  This rule will implement this provision of the Act and provide detailed guidance to all parties. 

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							8/16/2007
Bob Summers							Date
Director, Division of Workers’ Compensation         

REGULATORY ANALYSIS
FOR AMENDMENTS TO RULE 8 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, self-insured employers, insurance carriers, third party administrators and employers.

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

The main purpose is to implement a statutory change and clarify procedures and requirements.

By providing guidance and “filling in the gaps” this rule should assist all persons in complying with a change to the Workers’ Compensation Act in the most efficient manner possible.  Providing the guidance in this rule will reduce disputes that would otherwise arise. 

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 impact on costs or revenues is anticipated as a result of the rule changes.  

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

The proposed rule is required due to a legislative change.  This rule will conform to and provide guidance to effectuate a change in the statute.  This rule and its amendments are for clarification and procedural purposes and will have no cost impact on the system as a whole.  This rule clarifies an employer’s responsibility to provide a list of authorized treating physicians to an injured employee and allows for injured workers to effectuate a one-time change in their choice of treating physicians. This rule amendment clarifies responsibilities and procedures and should therefore decrease uncertainty and increase efficiency in the selection and/or change of an authorized treating physician.  

5.	Determination of whether there are less costly or less intrusive methods for achieving the purpose of the 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 and the reasons they were rejected in favor of the proposed rules.

Because of the nature of this proposed rule amendment 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