OhioBWC - Basics: (Policy library) - File

Policy and Procedure Name:

Orders, Waivers, Appeals and Hearings

Policy #:

CP-15-01

Code/Rule Reference:

O.R.C 4123.511; 4123.512; 4123.522; 4123.57; 4121.35; and 4121.36

O.A.C 4123-3-09; 4123-3-18; 4123-3-32; 4123-3-36; 4123-6-16; 4121-3-09; and 4121-3-30

Industrial Commission (IC) Resolution/Memo

None

Effective Date:

08/28/20

Approved:

Ann M. Shannon, Chief of Claims Policy and Support

Origin:

Claims Policy

Supersedes:

Policy # CP-15-01, effective 11/14/16 and Procedure # CP-15-01.PR1, effective 11/14/16

History:

Previous versions of this policy are available upon request

 

Table of Contents

 

I. POLICY PURPOSE

II. APPLICABILITY

III. DEFINITIONS

Appeal

Hearing

Order

Parties to a Claim

Waiver

IV. POLICY

A.          Requirements

B.          Types of BWC Orders

C.          Waivers

D.          Appeals to BWC Orders

V. PROCEDURE

A.          General Claim Note and Documentation Requirements

B.          BWC Orders

C.          Waivers

D.          Appeals to BWC Orders

E.           IC Hearings and Claims with the Attorney General’s Office

F.           Issuing Payment of Compensation/Medical Benefits After Issuance of an IC or BWC Order

 

 

I. POLICY PURPOSE

 

The purpose of this policy is to ensure that BWC publishes and/or executes orders, waivers, and appeals in compliance with law and administrative rules.

 

II. APPLICABILITY

 

This policy applies to all BWC staff.

 

III. DEFINITIONS

 

Appeal: A formal request for a change in, or reconsideration of, a decision.

 

Hearing: A meeting wherein the parties to a claim are afforded an opportunity to present evidence and be heard before the Ohio Industrial Commission (IC), the statutorily mandated adjudicatory body for workers’ compensation issues.

 

Order: The written notification of a decision made by BWC or the IC from the evidence gathered in a claim.

 

Parties to a Claim: Claimant, claimant representative, employer, employer representative, and BWC.

 

Waiver: A document or formal statement signed by parties to a claim agreeing to immediate implementation of orders issued by BWC and the IC. The waiver does not affect any past or future orders pertaining to the claim file; only the order currently being waived.

 

IV. POLICY

 

A.      Requirements

1.      It is the policy of BWC to process and publish BWC orders and waivers, process appeals, and perfect IC orders in accordance with legally mandated timeframes.

2.      A BWC order is required for all initial and subsequent determinations in claims in which BWC has jurisdiction.

3.      BWC will only perfect signed court orders or IC Court Unit memos.

 

B.      Types of BWC Orders

: Refer to Section V.B.3.a-j for specific information about individual order types and their uses.

 

C.      Waivers

1.      When all parties agree in writing to waive their right to appeal an order, BWC will consider the order as immediately effective.

2.      If the employer of record is out of business or in a final cancelled status, BWC does not require a waiver from the employer of record.

 

D.     Appeals to BWC Orders

1.      A party to the claim who disagrees with the BWC order may appeal the decision to the IC, thereby asking that a hearing be held to further evaluate the merits of the claim.

2.      How to Appeal:

a.      Notice of Appeal (IC-12) form;

b.      On a letter that contains all elements of the IC-12;

c.       Online at www.ic.ohio.gov through the Industrial Commission Online Network (I.C.O.N.);

d.      All appeals must be in writing.

3.      The appeal periods for BWC orders are:

a.      Tentative Orders (TO) - The objection (appeal) period expires 20 days from the printing of the TO;

b.      All other orders - 14 days after the date of receipt of the order.

4.      Faxes not received by the IC or BWC during core business hours (8 am to 5 pm) will be considered received and filed on the next business day;

5.      If evidence is submitted after an appeal is filed and the appeal is not withdrawn, BWC no longer has jurisdiction to reconsider that decision. However, BWC can obtain additional evidence during the hearing process to support its position.

 

V. PROCEDURE

 

A.      General Claim Note and Documentation Requirements

1.      BWC staff will refer to the Standard Claim File Documentation and Altered Documents policy and procedure for claim note and documentation requirements; and

2.      Must follow any other specific instructions for claim notes and documentation included in this procedure.

 

B.      BWC Orders

1.      Creating a BWC Order

a.      Claims services staff will generate BWC orders through the claims management system.

b.      Claims services staff will display and review the order prior to publishing.

2.      Claims services staff must include the following in all orders:

a.      The request/issue the order is addressing;

b.      BWC’s decision;

c.       Evidence relied upon to make the decision, including a detailed description of specific factual and/or medical evidence used as the basis for the decision;

i.        Claims services staff must not paraphrase from a medical report; only exact quotes will be used.

ii.      Claims services staff will avoid providing an opinion or comment on the weight, credibility or significance of a medical report unless advised to do so by BWC Legal.

d.      The declared amount of the full weekly wage (FWW)/average weekly wage (AWW) following the Wages policy and procedure when:

i.        Wage information is available;

ii.      Compensation has been or will be requested;

iii.    A request to set wages has been submitted; and

iv.     Wages haven’t already been set.

e.      The type of compensation to be paid and the period of the award; and

f.        Any information included in the sections below on specific orders.

3.      Specific Types of BWC Orders

a.      Initial Allowance Order 

i.        Published when granting the initial allowance of a claim for payment of medical benefits and/or compensation.

a)      For a medical only claim, this order will address claim allowance and the payment of medical benefits.

b)     For a lost time claim, this order will address claim allowance, the payment of medical benefits and payment of compensation.

ii.      The following issues may also be addressed:

a)      Setting of the FWW and AWW;

b)     Temporary total compensation (TT);

c)      First seven days of lost time;

d)     Non-complying employers (no coverage);

e)      Scheduled loss compensation awards (loss of use, amputation, loss of vision, and loss of hearing); and

f)       Salary continuation.

iii.    Claims services staff must address all valid conditions alleged on the First Report of Injury, Occupational Disease, or Death (FROI).

a)      Claims services staff must only allow conditions that are causally related to the injury and have supporting medical documentation. However, medical documentation may not be required for minor injuries as noted in the Medical Evidence for Diagnosis Determinations (MEDD) policy and procedure.

b)     Claims services staff will deny conditions that are not supported by medical documentation or are not causally related.

c)      Claims services staff must not deny a condition when some evidence is submitted but it is not conclusive enough to support the condition unless it is the only condition requested.

i)        When the evidence is inconclusive, the order must include a statement that this condition is neither allowed nor disallowed but will be considered upon submission of additional proof and a formal request if required.

ii)      When additional supporting documentation is filed within the appeal period, claims services staff will reconsider conditions that were requested on the FROI but were not previously allowed or denied. If the documentation is submitted after the appeal period has expired, claims services staff must follow the Additional Allowance policy.

iv.     If compensation is requested after the initial allowance order has been issued but no appeal has been filed and the appeal period has not expired, claims services staff may vacate the initial allowance order and issue a new order addressing compensation.

v.       Claims services staff must ensure:

a)      A description of the injury is in in the order;

b)     The description includes information received on the FROI and/or during the investigation; and

c)      The description is spelled correctly and is grammatically correct.

vi.     Claims services staff will use the “based on” texts in the initial allowance order.

a)      The first “based on” text is for specific information relied upon to make the decision. An example of language to be used in the “based on” text for the decision: "This decision is based on the medical report from Dr. W. Zimmerman, D.O., dated 05/13/19, and the MRI report dated 05/13/19, which states the diagnosis of herniated lumbar disc L4-5 is directly and causally related to the industrial injury of 05/10/19.”

b)     The second “based on” text is the “compensation based on” section and must be used if wages are being set or if compensation is being ordered. An example of language to be used in the “compensation based on” text: “The information regarding salary continuation was based on the signed C-55 dated 9/10/2019”; or, “wages were set based on the 52 weeks of earnings received from the employer of record and the IW’s part time job at City Window Cleaning”; or, “TT compensation was based on the C-84 dated 09/03/2019 from Dr. Jones.”

b.      BWC Initial Auto Adjudication Allowance Order

i.        Published systematically by the claims management system when an initial claim meets a set of criteria that causes the claims management system to automatically generate this allowance order;

ii.      The claim status is systematically updated to “Allow;”

iii.    All parties retain their appeal rights.

c.       BWC Initial Denial Order 

i.        Published when denying an initial allowance of a claim.

ii.      Claims services staff must include a description of the injury in the BWC initial denial order. The description must include information received on the FROI and/or during the investigation.

iii.    The most common reasons BWC will deny a claim include:

a)      The employee did not sustain an injury in the course of and arising out of employment;

b)     There is no evidence to support the injury or occupational disease (e.g., claim is alleged for exposure only);

c)      There is no medical relationship between the diagnosed condition and the described injury/occupational disease;

d)     There is no Ohio jurisdiction; or

e)      There is not an employee/employer relationship.

iv.     Claims services staff may also deny a claim for any reason found in the initial denial order inserts on COR.

d.      BWC Abate Order: Claims services staff will use this order to notify the dependent that the claim application has been abated by the death of the claimant.

e.      BWC Subsequent Decision Order 

i.        BWC subsequent decisions are published when granting a request for action after the initial claim determination or when issues are identified after the initial allowance of the claim;

ii.      Is only available for accident and occupational disease claims;

iii.    The following are types of issues that staff may address in a BWC subsequent decision order:

a)      Additional allowance;

b)     Payment of new periods of temporary total disability compensation for lost time claims or for medical only changeovers when the appeal period for the initial allowance order has expired;

c)      Wage information, including setting AWW for payment of a percentage of permanent partial disability (%PP) award;

d)     Wage loss;

e)      Facial disfigurement;

f)       Change of occupation;

g)      Proactive allowance of an additional condition;

h)     Permanent partial (including loss of use, amputation, loss of vision, loss of hearing);

i)        Permanent total disability (PTD) rate adjustment;

j)        The amount and reason for the injured worker’s (IW) overpayment;

k)      Physician of Record (POR) or treating physician has submitted a statement that the IW has reached maximum medical improvement (MMI) for all allowed conditions;

l)        POR or treating physician has submitted a statement that the IW is released to the former position of employment without restrictions.

iv.     BWC does not have authority to deny a subsequent request except for requests for medical treatment (via Alternative Dispute Resolution (ADR) order), lump sum advancement, medication reimbursement, and travel reimbursement (via miscellaneous order.)

v.       Claims services staff will issue a BWC subsequent decision order to address compensation allowances if compensation is requested after an initial order has been issued and the appeal period has expired.

vi.     A BWC subsequent decision order should not be issued while the allowance of the claim is under appeal. However, one possible exception is to issue an order for wages if there is a hearing order that grants compensation and wages have not been set.

vii.   The print location for this order defaults to central printing, but “Print to S.O.” can be selected. Claims services staff will only print to the service office if it is necessary to attach additional documentation to the order. 

viii. When setting wages and paying a %PP award at the same time, claims services staff will issue two separate orders.

a)      A BWC subsequent decision order is issued to set the wages and a BWC TO is issued to pay the %PP award.

b)     Two separate orders are issued because of the difference in the appeal periods. The TO has a 20-day objection (appeal) period and the subsequent decision order has a 14-day appeal period.

f.        BWC Miscellaneous Order

i.        The following are types of issues that staff will address in a BWC miscellaneous order:

a)      Initial claim dismissal;

b)     Participation in vocational rehabilitation (including living maintenance);

c)      Living maintenance wage loss; and

d)     Any other issue not covered specifically by any other order.

ii.      Staff will refer to the individual policy and procedures for specific instructions.

g.      BWC Death Allow Order

i.        Claims services staff must publish the BWC death allow order to:

a)      Grant death benefits and apportion benefits between dependents, either as the initial decision in the claim or as a subsequent decision on an existing claim; and

b)     Reapportion death benefits between dependents and to award accrued compensation in claims where death benefits have been allowed.

c)      Staff may refer to the Death Claims policy and procedures for specific instructions.

h.      BWC Death Deny Order

i.        Claims services staff must publish the BWC death deny order to communicate BWC’s decision to deny death benefits, either as the initial decision in the claim or as a subsequent decision in an existing claim

ii.      Claims services staff may refer to the Death Claims policy and procedures for specific instructions.

i.        BWC ADR Order 

i.        ADR orders are published to communicate the determination of medical disputes.

ii.      Information needed to generate an ADR order is entered by the MCO on behalf of BWC and the order is printed and mailed by central printing. 

j.        BWC Disabled Workers’ Relief Fund Order

i.        Published to communicate a decision on the IW’s entitlement to Disabled Workers’ Relief Fund benefits per the Permanent Total Disability (PTD) and Disabled Workers’ Relief Fund policy and procedure.

ii.      Types of issues that may be addressed in the BWC Disabled Workers’ Relief Fund order are:

a)      Entitlement to Disabled Workers’ Relief Fund benefits;

b)     Non-entitlement to Disabled Workers’ Relief Fund benefits;

c)      Social security disability rate;

d)     Permanent total disability (PTD) declared rate;

e)      Adjustment for increase or decrease in the Disabled Workers’ Relief Fund rate;

f)       Overpayment of Disabled Workers’ Relief Fund benefits;

g)      Stopping Disabled Workers’ Relief Fund benefits.

k.      BWC Tentative Order (TO)

i.        Published to either grant or deny an initial determination or subsequent increase of percentage of permanent partial disability.

ii.      Has a 20-day objection period;

iii.    Claims services staff may refer to the Percentage of Permanent Partial Disability or Increase of Permanent Partial Disability Compensation policy and procedures for specific instructions.

4.      Vacating an Order and Issuing a New Order

a.      Claims services staff may vacate the order and issue a new order when:

i.        New and changed circumstances, corrections to specific conditions and/or body parts, and/or clear clerical errors have occurred after issuance of the order. Common reasons to vacate a BWC order and issue a new order include:

a)      Changes to compensation payments (type, period or rate);

b)     Changes to the original decision (allow/deny);

c)      Changes to specific conditions;

d)     Changing the part of body from right to left or left to right;

e)      Correcting an employer of record;

f)       Correcting a date of injury;

g)      Modifying the diagnosis/condition, following the ICD Modification policy and procedures.

ii.      Requested evidence is received after the determination has been issued via a BWC order but no appeal has been filed, and that evidence changes the decision; or

iii.    All parties agree.

b.      Claims services staff may vacate an order and issue a new one within the following time periods:

i.        Within Appeal Period and No Appeal Filed

a)      Claims services staff must review the evidence received and determine if the evidence supports a change to the BWC order.

b)     If evidence is submitted within the appeal period, no appeal has been filed, and all parties to the claim agree, claims services staff can vacate the BWC order and issue a new, corrected BWC order.

c)      In all situations except those involving initial determination, when all parties do not agree to the modification, claims services staff will refer the claim to the IC.

ii.      Within Appeal Period and Appeal Has Been Filed

a)      Claims services staff must review the new evidence to determine if the evidence changes the published decision. At that time, although the IC has jurisdiction, BWC may approach the parties and discuss the parties’ option to withdraw the appeal so that BWC can issue a new order. If the parties agrees, staff may vacate the original order and issue a new order.

i)        The appeal must be withdrawn in writing during the appeal period.

ii)      If the appeal is withdrawn and all parties to the claim agree, claims services staff will vacate the BWC order and immediately issue the new, corrected BWC order.

iii)    If the withdrawal is received by BWC and the claim is currently at the IC, BWC will notify the IC. If the withdrawal is received at the IC, the IC will notify BWC.

iv)    If the appealing party does not wish to withdraw the appeal, the IC will process the appeal. Claims services staff must ensure the new evidence is made available for the IC’s consideration of the appeal.

b)     Claims services staff will follow the Notice of Referral to the Industrial Commission policy if evidence is submitted after an appeal is filed and the appeal is not withdrawn.

iii.    After Expiration of the Appeal Period and No Appeal Was Filed

a)      A new original order may be issued after the expiration of the appeal period with agreement from all parties of the claim.

b)     Example: Claim was originally allowed for shoulder sprain based on the medical documentation submitted by the emergency department. One week after the expiration of the appeal period the orthopedic surgeon submits office notes and an MRI report indicating the IW did not suffer a strain but instead diagnoses the IW with a rotator cuff tear. Claims services staff will follow the ICD Modification policy and if the parties agree, vacate the original order and issue a new original order.

c)      If claims services staff believes that the original order contains an error, but all parties do not agree to a change, claims services staff will consult with the local BWC attorney as to whether a motion for continuing jurisdiction is warranted (i.e., a mistake of fact, mistake of law, clerical error or new and changed circumstances).

i)        If a motion for continuing jurisdiction is completed by the BWC attorney, claims services staff will complete the Notice of Referral (NOR) to the IC referencing the BWC attorney’s motion.

ii)      The documentation must be imaged, and the IC will obtain all claim information though a systematic transfer of information prior to the IC hearing.

c.       Creating the New Order After the Order Has Been Vacated

i.        Claims services staff must always vacate an order when it is being replaced with a new order. All issues that were addressed in the original order must be repeated in the new order. 

ii.      When vacating an order and issuing a new order, claims services staff will use the “Vacated” button, which will automatically insert a paragraph stating the original order is being vacated and allows claims services staff to choose the reason the order is being vacated.

iii.    For orders that do not have the “Vacated” button option available, claims services staff must enter the following statement in the free form text area of the order: “This order replaces the BWC order dated <enter date> which is now vacated because <<reason order is being vacated>>.”

iv.     The new order must cite specific changes to the previous order and include in the “based on” text area the new information or evidence that was received which changed the previous decision.

v.       A new appeal period begins when the new BWC order is issued.

5.      Time Frames for Publishing a BWC Order

a.      Claims services staff will publish the BWC initial allowance or BWC initial denial order no later than 28 days after claim notification (the date the Initial Notification Letter is sent in the claims management system).

b.      If a medical examination is statutorily required for an initial determination, the time limit for the BWC order will be extended. The examination should be promptly scheduled and the BWC order published no later than 28 days from receipt of the examination report.

c.       An order may be issued once the investigation of the claim is complete and BWC has reached a decision, regardless of employer certification. However, BWC must continue to actively pursue employer certification during the initial investigation of the claim.

d.      ADR orders are systematically generated within seven days after the MCO’s receipt of the ADR IME report.

e.      Claims services staff will follow any additional operational directives regarding time frames for orders.

f.        Prior to completing a task on the claims management system, staff must review all open orders with overlapping or concurrent appeal periods and ensure they are completing the correct task.

 

C.      Waivers

1.      Who can waive:

a.      IW/Claimant and IW/Claimant representative;

b.      Employer and Employer representative;

c.       BWC attorney can waive an IC notice of hearing or IC order.

2.      The third-party administrator (TPA) or other non-lawyer legally cannot independently waive proper notice of hearing or waive the right to appeal on behalf of any party. They may submit a waiver, but the waiver must indicate they are doing so at the direction of the employer and not at the independent discretion of the TPA.

3.      How to waive:

a.      Waiver of Appeal Period (C-108);

b.      Letter that contains all elements of the C-108;

c.       Online at www.bwc.ohio.gov or www.ic.ohio.gov.

4.      How to submit waiver:

a.      Fax;

b.      Scanned and emailed;

c.       Physical delivery of the waiver to BWC or the IC.

5.      To release payment prior to the expiration of an appeal period, parties to the claim must waive in writing. If the award relates to compensation only, no waiver is required from the IW.

6.      The waiver does not affect any past or future orders pertaining to the claim.

7.      Claims services staff must enter notes summarizing the waivers and update the order status in the claims management system.

8.      Claims services staff will process an appeal and stop any payments during an appeal period, even if a waiver was previously received by the appealing party.

 

D.     Appeals to BWC Orders

1.      Claims services staff will review the appeal for timeliness, per the Mailbox Rule policy, so that BWC can assign the appropriate claim status prior to the appeal being heard by the IC.

2.      If BWC estimates an appeal has been filed within the appeal period:

a.      Claims services staff must image and index any appeal stamped “Tracked on IR” in application tracking. When the appeal is stamped “Tracked on IR” it has already been processed with the IC and does not need to be forwarded to them.  When the appeal appears on the claims services staff’s work list, a note/task will be entered indicating the issue, party filing, and date.

b.      The IC will obtain all claim documents through a systematic transfer of information prior to the IC hearing.

c.       If claims services staff receives evidence which might cause the appealing party to reconsider (especially issues involving clear clerical error), they must contact the party that filed the appeal to discuss the evidence received and provide an opportunity for the party to withdraw the appeal.

i.        The party can withdraw the appeal, in writing, during the appeal period. 

ii.      If the withdrawal is received by BWC, the withdrawal must be imaged into the claim file and a NOR must be completed.

iii.    If the withdrawal is received at the IC, the IC will notify BWC. The IC should send BWC a copy of the ex parte order officially recognizing the withdrawal of the appeal or a notice that the hearing on the issue has been cancelled.

d.      If the claim was certified and compensation was being paid at the time of the appeal, claims services staff will place the claim in Hearing status and stop compensation until a District Hearing Officer (DHO) decision is issued.

3.      If BWC believes an appeal has been filed after expiration of the appeal period, claims services staff will:

a.      Ensure the appeal is imaged into the claim;

b.      Complete a NOR if the appeal has not been stamped as “Tracked on IR”;

c.       Keep the claim in the status as determined by the initial determination order; and

d.      Rename all documents imaged in the claims management system.

 

E.      IC Hearings and Claims with the Attorney General’s Office

1.      If claims services staff believes there is an error in an IC order that needs to be corrected:

a.      Claims services staff will staff clerical errors on IC orders with their supervisor.

b.      If the supervisor determines the error may need to be corrected, the supervisor may discuss the issue with the local BWC attorney.

c.       If further discussion or clarification is needed, the local BWC attorney or the supervisor may contact the IC Regional Manager.

d.      BWC will file the Request for Corrected Order (IC-13) if the BWC attorney determines a corrected order is necessary.

2.      If a subsequent request is filed with BWC when a claim is at the Attorney General’s office on appeal, claims services staff will refer to the Processing Subsequent Requests for Attorney General Appeals chart on COR to determine when a subsequent request for action can be processed.

3.      Claims services staff will implement a court order only upon the receipt of the signed IC Court Unit memo.

4.      Emergency Hearings

a.      For information about emergency hearings or to request an emergency hearing, claims services staff will notify the IW to contact the IC.

b.      Claims services staff may notify IWs experiencing financial emergencies that the IW may be eligible for certain federal and state benefits in addition to workers’ compensation.

c.       Claims services staff may suggest that the IW contact their attorney or their county Ohio Department of Jobs and Family Services (ODJFS) for information regarding financial assistance that may also be available.

d.      Claims services staff will notify BWC Legal of any emergency hearing so that BWC Legal may determine if BWC representation at the hearing is necessary.

 

F.      Issuing Payment of Compensation/Medical Benefits After Issuance of an IC or BWC Order

1.      Claims services staff must pay all compensation, except %PP, beginning the earlier of the following:

a.      The expiration of the appeal period if no appeal to an order has been filed, following the Mailbox Rule policy;

b.      The date when the employer has waived the right to appeal a decision;

c.       Upon issuance of the initial allowance order if the claim is certified by the employer or an employer waiver is received; or

d.      The date the DHO, Staff Hearing Officer (SHO), or IC order is received by the employer.

2.      Claims services staff must pay %PP when the order granting the award becomes final or upon receipt of the SHO order.

3.      Payment of medical benefits begins the earlier of the following:

a.      The date the order is issued by the SHO; or

b.      The date of the final administrative or judicial determination. This includes the date the appeal rights are waived by the employer.

4.      If the claim meets the Fast Response criteria, as defined in the Initial Claim Determination policy, immediate payment can be made upon issuance of the BWC order regardless of employer certification.

5.      Claims services staff will issue an order and hold payment of compensation and benefits until the expiration of the appeal period or a written waiver from the employer is received if the undetermined claim is not certified by the employer. A waiver from the IW is not required to pay compensation.

6.      Additional information can be found on the Orders Quick Reference Guide on COR.