Wednesday, March 21, 2007

Legislation expanding workers’ compensation mediation program

Georgia HB 661, amending O.C.G.A. 33, Chap. 9, includes a provision that refer disputes between health care insurers and workers comp insurers to the Alternative Dispute Resolution Division of the State Board of Workers' Compensation. Although the act is stated in the mandatory, i.e., “the entity´s right to reimbursement shall be resolved by referral,” the health care insurer has the choice of initiating the mediation. Reflecting an obvious misunderstanding of mediation, the act provides that the “losing party” pay the cost of the mediation. To confuse things further, despite the fact that the ADR Division is already operational and that the “loser” covers the costs, the act shall become effective only if funds are specifically appropriated and become available for expenditure.

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