Bill would give workers suit option

Wednesday, Aug. 21, 2002 | 9:54 a.m.

CARSON CITY -- A bill is being prepared for the 2003 Legislature to give more clout to injured workers who feel they have not been treated fairly by worker compensation insurance companies.

The legislation, requested by Assemblyman Doug Bache, D-Las Vegas, would allow the injured employee to file suit against the companies for "bad faith" that may arise in denying or delaying a claim for medical treatment.

Jack Jeffrey, a representative of the Nevada Trial Lawyers Association, says the present system isn't working to the benefit of a worker who feels an insurance company may fight acceptance of his claim or delay it without reason.

Workers can now file complaints of "bad faith" with the state Division of Industrial Relations, which can impose a fine of up to $10,000. But Jeffrey said the agency assesses a couple of hundred dollars in fines in most cases, which the insurance companies consider a slap on the wrist.

The injured worker, he said, doesn't get any real help.

But Bob Ostrovsky, who represents Nevada Employers Co. of Nevada, said he wants to be shown the present law isn't working. And if it isn't, then there may be changes that can be made without ending up in court.

Ostrovsky said an insurance company that is found guilty of bad faith a second time could have its licensed revoked. The Division of Industrial Relations can double the award to the injured worker.

For instance, if the employee is due $15,000 in compensation, he can get $30,000 if the industrial relations division finds there is bad faith by the insurance company in withholding or delaying the payment.

"We're willing to look at the current law and possibly strengthen it before taking a giant leap where you see everybody in the courtroom," said Ostrovsky, whose client has the lion's share of the workers compensation insurance business in Nevada.

He said complaints of bad faith are now investigated by the state agency and the injured worker doesn't have to hire an attorney. But opening the door to court action would require the employee to have a lawyer, he said.

Roger Bremner, administrator of the industrial relations division, could not be reached for comment on the number of "bad faith" complaints that are filed and the amount of the fines.

Jeffrey also said the bill would include a "willing provider" clause to open the door for more doctors to provide treatment to employees who are hurt on the job.

"Willing provider" legislation would allow any doctor to match the price the insurance company has set for its list of preferred medical providers.

The insurance companies, Ostrovsky said, are worried that this will lead to "doctor shopping," which led to certain abuses. Some doctors did not push the worker to get back on the job as soon as possible, Ostrovsky said.