Sep 15, 2006 - Minutes of Board of Managers Meeting

The Technology Committee Report was presented by Ms. Child. She reports that the website is continuing to develop. An email blast was going to be sent regarding the new career opportunity page on the website. There was a discussion of creating a hyperlink to the RIMS website, and vice versa. Finally, a discussion was had regarding making dues payable through the website in the future.

The Amicus Curiae Report was submitted by Mr. Calille. He noted that in Paige v Sterling Heights the Supreme Court adopted the position supported by the Board. This is in connection with the statutory requirement that where a work-related death is not contemporaneous with the work injury, the claimant must prove that the work injury was "the" proximate cause of the death. The case law previously indicated that such a death was compensable if the work injury was "a" proximate cause of the death. It was also pointed out that we are awaiting a decision from the Court of Appeals in Stokes v DaimlerChrysler. The Court of Appeals is to issue a decision before October 1, 2006. In fact, the decision has still not been issued.

The Board's attention was drawn to the recent decision in Irby v SMART. This was a Rule V hearing heard by the Director of the Workers' Compensation Agency. At the conclusion of the opinion he directed that an investigation be done regarding how the claim had been adjusted. "Therefore, in addition to the payments and penalties ordered herein, this matter is referred to agency staff with the directive to review claims files of this agency approved self-insured employer for appropriate handling in accordance with Michigan law and practice." The Board expressed concerns about the Director "second-guessing" how files are adjusted and about the possibility of a new trend developing.

The Funds Trustees Report was delivered by Ms. Child. Dues notices have been sent out with a 2% assessment. As of August 80% of the dues had been paid. As you know, the Trustees have only two members instead of the required three. A third person was recently appointed, and promptly resigned. So there is another vacancy that now must be filled.

The Health Care Committee Report was presented by Ms. Azar. She reported that Michigan was one of fourteen states studied by the Workers' Compensation Research Institute relative to healthcare costs. Michigan was deemed a low-cost state. She also noted that a study is being done regarding evidence-based medical guidelines that would establish, for example, reasonable lengths of time for treatment of a condition, and a reasonable number of treatments. Rules for pharmaceutical companies are also being studied or proposed that could be a topic for future discussion by the board.

The 2006 Fall Conference Report was delivered by Ms. Azar. The Pirates of the Comp Arena theme is going well. All of the speakers are set. The brochures have been mailed out. There are 70 registrants so far.

Under Old Business the Sington evaluation forms proposed by David Campbell were passed out. Also passed out was the Sington Analysis Description of Purpose and Limits of Counselor Relationship form. Some concern was expressed about the use of the phrase “utilizing your past employment history.” Rather than placing this emphasis on past employment history, it might be better to replace the word past with "full or complete." There was also mention made of the use of the phrase "local labor market information." It was thought it would be better to have the word local replaced with relevant. The newly amended administrative rules regarding vocational rehabilitation were distributed. There was also some concern expressed with the rapid pace that these forms, as well as the new administrative rules, are being considered. This push may inhibit all parties from contributing. Also discussed under old business was attendance at meetings Attendance at the September meeting was very good. With winter weather coming, the members were reminded that the teleconference system will be available. This method, however, is not to be substituted for regular, personal attendance.

Under New Business it was noted that the QAC has made no appointments, because it has not conducted any interviews yet. Interviews are scheduled to take place on October 12, 13, and 16. Two people passed the test. It was also noted that this could be an interesting time for appointments. Until the next governor is elected in November, many appointed positions throughout state government may go unfilled.

Discussion of the 2007 Spring Conference was tabled until the next meeting.

Ms. Azar brought to the board's attention information relative to excess insurance coverage. The federal Terrorism Risk Insurance Act may not be renewed next year because the federal government does not believe that there are any problems with getting excess coverage. Typically, a workers' compensation policy does not allow for an exclusion of terrorist acts. Other types of policies can exclude terrorist acts. Further, workers’ compensation insurance is mandatory. The inability to secure excess coverage could seriously affect the ability to remain self-insured. The Board may wish to contact the federal government's study group that is studying this matter.

In closing, it was agreed that a card would be sent to Magistrate Barney's widow expressing our condolences. Additionally a $100 gift would be made in Magistrate Barney’s name for the treatment of pancreatic cancer.

A motion to adjourn was made by Ms. Cyrulnik, seconded by Ms. Susser. The meeting was adjourned at 4:21 p.m.