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FEDERAL BLACK LUNG REGULATIONS

SESSION NUMBER 4 WORKERS COMPENSATION EMERGING ISSUES FEDERAL BLACK LUNG REGULATIONS DALE 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.

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FEDERAL BLACK LUNG REGULATIONS

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  1. SESSION NUMBER 4WORKERS COMPENSATION EMERGING ISSUESFEDERAL BLACK LUNG REGULATIONSDALE W. BROADWATER

  2. 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

  3. Federal Black Lung Regulations • Summary of Pennsylvania Filing • Discussion of the Award Ratio • 1984 Endorsement • Statutory Accounting vs. Pricing

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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

  9. 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

  10. FEDERAL BLACK LUNG REGULATIONS • 1984 Endorsement • a)Initial Standard Endorsement • b)1977 Law Amendment • c)1982 Court Case • d)1984 endorsement language

  11. 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

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