sb 0082

CHAPTER 99

SB 82-FN - FINAL VERSION

AN ACT relative to awards of fees and interest under workers' compensation.

SPONSORS: Sen. Flanders, Dist 7; Rep. Gilman, Graf 9

This bill clarifies when interest is due and when the claimant is entitled to interest on awards under workers' compensation. The bill also clarifies when a claimant is entitled to attorneys' fees in appeals of workers' compensation cases.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

AN ACT relative to awards of fees and interest under workers' compensation.

Be it Enacted by the Senate and House of Representatives in General Court convened:

99:1 Workers' Compensation; Failure to Make Compensation. Amend RSA 281-A:42, V to read as follows:

V. Any insurance carrier or self-insurer who fails to file a timely memorandum in accordance with this section and who makes late payment to the employee, shall pay interest to such employee at the [~~rate of 10 percent per annum~~] same rate as for judgments under RSA 336:1, II from the date the payment was due until it is paid.

99:2 Workers' Compensation; Awards of Fees and Interest. Amend RSA 281-A:44 to read as follows:

I.(a) In any dispute over the amount of the benefit payable under this chapter which is appealed to the board or supreme court or both, the employee, if such employee prevails, shall be entitled to reasonable counsel fees and costs as approved by the board or court and interest [~~at the rate of 10 percent per year~~] on that portion of any award the payment of which is contested. [~~The interest shall be computed from the date of injury.~~] For the purposes of this paragraph, to "prevail" means:

(1) If the employee is the appealing party, the employee shall have received an award for disability benefits, medical, hospital, and remedial care, a scheduled permanent impairment award, vocational rehabilitation, or reinstatement of the employee, which is greater in amount than awarded by the decision which is the subject of the appeal; or

(2) If the appeal is by the employer or insurance carrier, the appealed decision shall have been affirmed.

(b) If the insurance carrier appeals multiple issues and the employee prevails

on some, but not all, of the issues appealed, the board or court shall apportion and award fees to the employee's attorney only for the reasonable fees apportioned to the issues which were affirmed.

II. Interest shall be calculated at the same rate as for judgments under RSA 336:1, II, and the state treasurer shall periodically transmit the applicable rate to the commissioner in the same manner provided for notice to the administrative office of the courts.

III. Interest on awards for disability indemnity benefits shall be computed:

(a) From the date of injury where compensability is in dispute in the first instance and benefits have not been paid; or

(b) From the date of termination or reduction of benefits where the extent of disability is in dispute or where benefits were terminated or reduced for some other reason.

IV. Interest on awards for a scheduled permanent impairment shall be computed from the date when payment is due under RSA 281-A:32, XI.

V. Interest on awards for medical, hospital, and remedial care shall be payable only on amounts which have been paid directly by the employee and not by a third party, in

[~~II.~~] VI. No attorney representing a claimant shall contract for, charge for, or collect a fee for legal service rendered to the claimant at the department level unless the fee has been approved by the commissioner. In determining the amount of the allowable fee, the commissioner shall consider, among other things, the nature, length and complexity of the service performed, the usual and customary charge for work of the like kind and the benefit accruing to the claimant as a result of the legal service performed; provided, however, that when an insurance carrier, self insurer, or payor acting on behalf of such carrier or self insurer disputes the causal relationship of a medical bill to the claimant's injury, or whether a medical bill was required by the nature of the injury, and denies payment of such bill, is after a hearing, ordered to pay or reimburse the bill by the commissioner, the employee shall be entitled to reimbursement of reasonable counsel fees and costs as approved by the commissioner.