COMPACT for workers' compensation professionals

May 2007
Minnesota Department of Labor and Industry

CONTENTS
2 Updates from the Workers' Compensation Division
• Information sheet: release of medical records
• Work comp claims statistics-at-a-glance
• Exploration of forms-driven to data-driven system continues

3 Work comp penalties fund Assigned Risk Safety Account

3 Moving away from using Social Security numbers

4 Department welcomes new Workers' Compensation Division

employees

4 From the State Register: Provider participation list available

5 Basic adjusters' training 2007: information, registration

D-1 Court decisions: January through March 2007

Claims brochure Department welcomes new Court decisions:

updated work comp employees October through December 2006

Summaries of
2 4 Decisions D-1
 Updates from the Workers' Compensation Division
· Information sheet: release of medical records
The Department of Labor and Industry (DLI) has recently developed an information sheet to clarify
appropriate application of the Minnesota workers' compensation law as it relates to the release of medical
records of injured workers. The document provides links to other related Web sites and information about
the release of medical records under Minnesota Statutes § 176.138 of the Minnesota workers' compensation
law, the Minnesota Health Records Act in Minn. Stat. § 144.335, the federal Health Insurance Portability and
Accountability Act (HIPAA) and other state and federal workers' compensation laws. It is on the DLI Web site
at www.doli.state.mn.us/pdf/medical_records_release0407.pdf.

· Work comp claims statistics-at-a-glance Minnesota workers' compensation claims

The Department of Labor and Industry's (DLI) Research Part of body
and Statistics unit has updated its annual Minnesota Head 2% (except eyes)
Fingers 8%
workers' compensation claims characteristics brochure and
Eyes 1%
has produced a teen claims characteristics handout.
Hands 4% Neck 2%

The brochure and handout provide statistics-at-a-glance Shoulders 8%

Wrists 6%
about injury, illness and fatality claims for 2005 (2003
Back 23%
through 2005 for teens), such as the number of claims, Arms 6%
nature of injury or disease, occupation of injured workers
Trunk 7% Legs 3%
and injured worker characteristics. The brochure also
(except back)
provides resources for further workers' compensation Knees 9%
statistical information. Body systems 1%
Ankles 5%
The brochure (current and past versions) and handout are Multiple parts 12%
online at www.doli.state.mn.us/pubwkcp.html. For more
information, contact DLI's Research and Statistics unit at Toes 1% Feet 3%
dli.research@state.mn.us or (651) 284-5025.

· Exploration of forms-driven to data-driven system continues

Currently, the Department of Labor and Industry (DLI) Workers' Compensation Division regulates largely
through the receipt of forms submitted by workers' compensation insurers, employees, qualified rehabilitation
consultants and attorneys. Each of the forms is scanned into the document imaging system, employed by the
department since the mid 1990s, and certain data elements are entered into the department's database. The
Workers' Compensation Division staff uses the data and images to monitor and react to actions on each case to
ensure compliance with the workers' compensation laws.

DLI has been evaluating the possibility of moving toward data-driven regulation in workers' compensation
instead of its current forms-based approach. As part of this project, DLI developed a pilot to work with the
information collected on one workers' compensation form – the Notice of Intention to Discontinue (NOID)
– via the data it contains rather than a scanned image of the form. DLI and consultants have been working to
identify data elements involved in each of DLI's regulatory and administrative functions.

As the department continues to explore moving toward a data-driven system, the pilot to evaluate use of the
information contained on the NOID form vs. review of the form is complete and lessons learned have been
documented. Members of the advisory committee, which includes external stakeholders (insurer, attorneys,
Office of Administrative Hearings, Workers' Compensation Court of Appeals and rehabilitation consultants),
have been asked for their goals and concerns related to a data-driven system. The first phase of the project is
expected to be completed in May.
2 • COMPACT • May 2007
 Work comp penalties fund Assigned Risk Safety Account
Throughout the workers' compensation statutes there are fines and penalties that may
be assessed for infractions within the system. Under the workers' compensation
law, penalties are paid either to the Assigned Risk Safety Account or directly to
injured employees. The Assigned Risk Safety Account was created in 1992 by
the Minnesota Legislature to finance safety programs within the Department of
Labor and Industry (DLI).

One of those programs is the Safety Hazard Abatement Grant Program, administered
by DLI's Workplace Safety Consultation unit. This program provides matching grants of
up to $10,000 to employers for equipment or training designed to reduce the risk of injury and illness to
its workers. During the first half of the current state-fiscal-year, 77 grants have been awarded, totaling
nearly $367,000.

For more information about:

• safety grants, visit www.doli.state.mn.us/grants.html; or
• fines and penalties, visit www.doli.state.mn.us/pdf/fines06.pdf.

Moving away from using Social Security numbers

By Jana Williams, Information Processing Center Director

The Department of Labor and Industry (DLI)
is committed to reducing the possibility of
someone stealing Social Security numbers
used in its current system. A DLI committee
has been discussing issues and options for
some time.
Division files, used to store injury claim
records at DLI, were set up many years ago
to use the injured worker's Social Security
number and date of injury. This system is
still used today. The committee's original
goal was to try to eliminate or minimize
the use of Social Security numbers, starting
with correspondence sent by the department.
Eliminating the use of the Social Security
numbers completely is very difficult, because
it is a widely recognized, unique number that
identifies an individual.
DLI proposes to instead use a computer-
generated system number (WCID number)
that is assigned to an injured worker after an
initial injury is reported. The number (up to
10 digits) is then linked to the Social Security
number and used in data tables for all injuries
for the same individual. The DLI committee's
preliminary recommendation is to continue
using the Social Security number for the initial
submission of a work injury, but communicate
the internal system number to the parties for
use on subsequent filings.
Details concerning the implementation of
this change, such as how to communicate the
WCID number quickly, what forms need to be
revised, etc., are still at the discussion stage,
although the department hopes to implement
this change within the next 18 months.
Those who have concerns or suggestions
about this system change may contact Cindy
Valentine, DLI's chief information officer, at
cindy.valentine@state.mn.us.

3 • COMPACT • May 2007

 Department welcomes new Workers' Compensation Division employees
The Department of Labor and Industry (DLI) is pleased to
announce the recent appointments of Sandra Barnes, Amy
Borgeson, Walter Bowser and Thomas Germscheid to its
Benefit Management and Resolution unit, and Clayton
Overmire to its Claims Services and Investigations unit.

Sandra Barnes is a graduate of William Mitchell College of

Law. She has primarily represented employers and insurers
in workers' compensation matters for the past few years.

Amy Borgeson is a graduate of the University of

New DLI employees (l to r): Thomas Germscheid,
Minnesota Law School. During the past several years, Sandra Barnes, Amy Borgeson and Clayton Overmire.
she has exclusively defended employers and insurers in
workers' compensation matters. Borgeson also formerly worked as a settlement judge for DLI.

Walter Bowser is also a graduate of the University of Minnesota Law School. He was most recently
employed as a district court judge, unemployment compensation judge and mediator/arbitrator.

Thomas Germscheid is a graduate of William Mitchell College of Law. He has been employed
for several years as an arbitrator and attorney representing individuals and insurers in workers'
compensation, personal injury and employment matters.

Clayton Overmire previously worked nine years in the private sector investigating and handling
complex insurance injury claims in both workers' compensation and automotive no-fault.

From the State Register

Provider participation list available
Minnesota Statutes § 256B.0644 and Minnesota Rules parts 5221.0500, subp. 1 and
9505.5200 to 9505.5240, also known as DHS “Rule 101,” require health care providers
that provide medical services to an injured worker under the workers’ compensation law
to participate in the Medical Assistance Program, the General Assistance Medical Care
Program and the MinnesotaCare Program.

Notice is hereby given that the Minnesota Health Care Programs provider participation list
for April 2007 is now available. The provider participation list is a compilation of health
care providers that are in compliance with the Department of Human Services (DHS)
Rule 101. If a providers' name is not on the list, the department considers the provider noncompliant.

The list of providers is separated by provider type, each section is in alphabetical order by provider name
and there is no additional information on the list other than the provider’s name. This list is distributed on
a quarterly basis to the Department of Employee Relations, the Department of Labor and Industry, and the
Department of Commerce. To obtain the list, call Julie Hervas, DHS Rule 101 specialist, at (651) 431-2704
or toll-free at 1-800-366-5411. You may fax your request to (651) 431-7462 or mail it to the Department of
Human Services, P.O. Box 64987, St. Paul, MN 55164-0987.
4 • COMPACT • May 2007
 minnesota department of
labor & industry
Workers' Compensation Division

Basic Adjusters’ Training 2007

– Two remaining two-day sessions in 2007! –

/
June 18 and 19 Oct.11 and 12

8:30 a.m. to 4 p.m.

This training is recommended for claim adjusters who have less than one year of
experience in Minnesota workers’ compensation. Session topics include:

• Overview of Minnesota workers’ compensation

• Waiting period
• Liability determination
• Indemnity benefits
• Rehabilitation benefits and issues
• Medical benefits and issues
• Penalties
• Dispute resolution
• How to file forms

Location: Minnesota Department of Labor and Industry

443 Lafayette Road N.
St. Paul, MN 55155
Minnesota Room

Cost: $175 for the two-day session (includes lunch)

Early registration is encouraged. Each session is limited to 30 people. Classes will be filled on a first-come,
first-served basis. If your reservation is not one of the first 30 received, you will be contacted about other
available sessions.

If you need special accommodations to enable you to participate in this event or have questions about this training, call Jana Williams
at (651) 284-5304, toll-free at 1-800-342-5354 or TTY (651) 297-4198. The Department of Labor and Industry reserves the right to
cancel a session if there are not enough participants registered.
Register online at https://secure.doli.state.mn.us/wcadjtrainreg

Registration form
Please register me for the Basic Adjusters’ Training session checked below. Enclosed is my check made payable
to: Minnesota Department of Labor and Industry.

June 18 and 19, 2007 Oct. 11 and 12, 2007

Name and phone:

E-mail address:
Company name and address:

Number of months of experience with Minnesota workers’ compensation:

To register more than one person from your company for this class, attach a sheet listing additional names, telephone numbers and
number of months of experience. Send form and check to: Attn: Financial Services, Minnesota Department of Labor and
5Industry,
• COMPACT • May 2007
443 Lafayette Road N., St. Paul, MN 55155.
www.doli.state.mn.us/workcomp.html Minnesota FEI #416007162