Labor & Employment (Workers' Compensation)

This Act makes updates to the Delaware workplace safety program to increase the workers’ compensation insurance credit that businesses can access while maintaining overall program stability. Past legislation that adjusted Workplace Safety Program parameters led to the filing of a new Experience Rating Plan by Delaware Compensation Rating Bureau, which inadvertently resulted in lower discounts. Most businesses with lower-than-average claim costs, regardless of size, continue to see reductions in their experience modification factors. The Workplace Safety Program credit and the experience modification factor savings result in a similar savings as before for employers with favorable loss history. However, this was not the intention of prior law. This Act ensures that companies can reach maximum premium savings of 12%.

This Act provides a one-time increase of 3% in aggregate worker’s compensation medical expenses to correct reimbursements for medical services coded as evaluation and management (E&M) for worker compensation cases. This is needed as the E&M reimbursement rate for Workers’ Compensation cases has fallen below the reimbursement rate of the Center for Medicare & Medicaid Services rates. This is a critical need as the State of Delaware is in critical need of physicians to accept and treat worker compensation patients.