Provides for tort liability for a worker's compensation insurer that causes further injury through the unreasonable denial of medical treatment to an injured worker. (8/1/18)
If enacted, SB 180 would significantly alter the landscape of workers' compensation law. Insurers who deny medical care without good cause could face not only administrative penalties but also tort liabilities for any resulting injuries to the claimant, which would mark a notable expansion of legal protections for workers. This change is designed to provide a stronger deterrent against frivolous denials of medical treatment, ensuring that insurers are more diligent in their decision-making processes. Ultimately, this could lead to increased accessibility to necessary medical care for injured workers.
Senate Bill 180, sponsored by Senator Milkovich, aims to enhance the accountability of workers' compensation insurers by imposing tort liability for unreasonable denial of medical treatment to injured workers. The proposed legislation amends existing laws regarding the responsibilities of payors, specifically addressing the communication obligations and the process for authorizing medical services for claimants. By laying down stricter guidelines for denying medical treatment, the bill seeks to ensure that injured workers receive the care they are entitled to without facing undue barriers from insurance companies.
Overall sentiment around SB 180 appears to be positive among labor advocates and organizations supporting workers' rights, as it represents a proactive step towards safeguarding access to medical care for injured individuals. However, some concerns have been raised regarding the potential implications for insurers, who may view the bill as creating a more litigious environment. Critics might argue that it could lead to increased costs for workers' compensation coverage if insurers face higher liabilities in tort cases. This introduces a tension between the interests of protecting workers and managing the financial viability of worker's compensation systems.
The primary points of contention revolve around the balance between ensuring injured workers' rights and the operational realities faced by workers' compensation insurers. Proponents argue that the bill fosters accountability among insurers by holding them responsible for unjust denials that lead to further injuries. In contrast, opponents may contend that enforcing tort liability could create disincentives for insurers to provide coverage or might lead to stricter underwriting practices that could ultimately hurt injured workers seeking care. The discussion reflects a broader debate about how best to structure workers' compensation systems to effectively support both workers and insurers.