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This session provides a comprehensive overview of Federal Black Lung Law, recent updates, and litigation insights. Learn about the impact of new regulations, who is affected, and the implications for carriers, reinsurers, and funds.
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SESSION NUMBER 4WORKERS COMPENSATION EMERGING ISSUESFEDERAL BLACK LUNG REGULATIONSDALE W. BROADWATER
FEDERAL BLACK LUNG REGULATIONS • Brief history of Federal Black Lung Law • Up-date of current Regulations-Litigation • Impact of the New Regulations • Who do the New Regulations Affect
Federal Black Lung Regulations • Summary of Pennsylvania Filing • Discussion of the Award Ratio • 1984 Endorsement • Statutory Accounting vs. Pricing
FEDERAL BLACK LUNG REGULATIONS • Brief History of Federal Black Lung Regulations • a)Original 1969 Law • b)1973 Amendment • c)1977 Amendment • d)1982 Amendment • e)103rd Congressional Bill
FEDERAL BLACK LUNG REGULATIONS • Update of current Regulations-Litigation • a)January 1997 initial proposal • b)October 1999 second proposal • c)December 20, 2000 Final proposal effective January 19,2001 • d)February 9, 2001Preliminary Injunction • e)June 5, 2001 Oral Arguments • f)August 9, 2001 Decision
FEDERAL BLACK LUNG REGULATIONS • Impact of the New Regulations • a)Definition of Pneumoconiosis • b)Expansion of medical Benefits • c)Primary treating physician • d)Refiling of previous denials
FEDERAL BLACK LUNG REGULATIONS • Who do the New Regulations affect • a)Direct carriers • b)Reinsurers and excess carriers • c)Plans and Pools • d)Insolvancy Funds
FEDERAL BLACK LUNG REGULATIONS • Summary of Pennsylvania Filing • a)Overall 6407% increase in Federal Loss Costs • b)Majority of filing to cover new/refiled claims • c)Shrinking exposure base magnifies percentage increase • d)Summary of calculations
FEDERAL BLACK LUNG REGULATIONS • Discussion of the Award Ratio • a)Potentially misleading • b)DOL estimates 12% • c)Depends on definition of denominator • d)Claim number vs. Social Security Number
FEDERAL BLACK LUNG REGULATIONS • 1984 Endorsement • a)Initial Standard Endorsement • b)1977 Law Amendment • c)1982 Court Case • d)1984 endorsement language
FEDERAL BLACK LUNG REGULATIONS • Statutory accounting vs. pricing • a)CMCRB cautiously proposed one year term • b)Subject to modification with Regulator approval • c)Individual carrier variations