State Legislation

CorVel has provided workers’ compensation management services to Kentucky employers for more than 30 years. Our approach is that all injured workers need quality healthcare and compassionate guidance from someone who is familiar with their case. CorVel provides personalized attention, along with the expertise needed to help speed return to work, while ensuring patients understand and follow treatment plans and get their questions answered quickly. All so that recovery can continue and life can get back on track.

Our comprehensive return to work program ensures collaboration and communication with all interested parties including the injured worker, employer, human resources, medical and safety teams, and healthcare providers.  We use technology, compassionate case management for employees and cost containment measures, to give Kentucky employers a superior program.

As a service to our clients, CorVel is providing links to information related to the COVID-19 pandemic provided by the states.

Legislature Status: Scheduled to meet April 14 & 15.

• Kentucky Cabinet for Health and Family Services coronavirus resource page.

• April 13, 2020 – The Governor announced that the United Postal Service (UPS) donated 16,000 N95 masks.

Legislation

• HB 140 Creates and amends Kentucky code regarding telehealth. Enacted.
• SB 282  Requires employers to provide accrued paid sick leave to employees. Provides mechanism for employees to accrue paid sick leave; establishes guidelines for employers to calculate paid sick leave for employees; sets forth manner in which paid sick leave can be used; creates a civil penalty for violation of provisions. Pending.
• HB 356  Makes appropriations for the operations, maintenance, support, and functioning of the Judicial Branch of the government of the Commonwealth of Kentucky; authorizes, for the during of a state of emergency, the Chief Justice to declare a judicial emergency to protect the health and safety of court employees, elected officials and the general public, and to extend any statutory timelines and statutes of limitations for court filings. Enacted.
• HB 449 Provides definitions of terms related to disaster or emergency-related work; exempts disaster response employees and disaster response businesses from income tax beginning on or after January 1, 2020, and before January 1, 2024; exempts disaster response businesses beginning on or after January 1, 2020, and before January 1, 2024; excludes the income of a disaster response employee and a disaster response business from local tax; excludes a disaster response business from certain permit requirements. Pending.
• SJR 246  Directs the Cabinet for Health and Family Services to assess Kentucky’s preparedness to address the coronavirus and report to the General Assembly. Pending.
• SB 177 Relates to education and declaring an emergency; allows a school district to request approval for additional student attendance days under an emergency nontraditional instruction plan when the district is closed due to the state of emergency declared by the Governor related to COVID-19. Enacted.
• SB 150 In response to the coronavirus public health emergency, waives various professional and business licensing fees; provides for unemployment benefits; provides for the Coronavirus Hotline. Enacted.

COVID-19 Related Policies

Executive Order 2020-277: State of Emergency Relating to Workers’ Compensation

Summary:

This order recognizes that some Kentuckians, because of the nature of their employment, are particularly at risk of being exposed to COVID-19 and therefore should be protected by workers’ compensation coverage.

This order applies to all insurance carriers writing policies providing workers’ compensation and any employer carrying its own risk.

This order states that an employee who has been removed from work by a physician due to occupational exposure will be entitled to temporary total disability payments during the period of removal, even if the employer ultimately denies liability.

In order for exposure to occupational, there must be a causal connection between the conditions under which the work is performed and COVID-19.

The order stipulates that the temporary total disability payments made under this order must be payable from the first day the employee is removed from work.

This order states that removal of the following workers by a physician will be presumed to be due to occupational exposure of COVID-19: employees of a healthcare entity, first responders, corrections officers, military, activated National Guard, domestic violence shelter workers, child advocacy workers, rape crisis center staff, Department for Community Based Services workers, grocery workers, postal service workers, and child care workers permitted to provide care during the state of emergency.

Payment by the employer does not waive the employer’s right to contest its liability.

Most Recent Update: This executive order was issued by Governor Andy Beshear (D) on April 9, 2020. This order will remain in effect for the duration of the State of Emergency under Executive Order 2020-215 unless otherwise rescinded by the governor.

Kentucky Regulatory Updates  4/11/2024

SB 367 – An Act Relating to Health Care to Provide For an All-Payer Claims Database and Making an Appropriation Therefor.

Issues: Workers’ Compensation (General)

Summary For 02/29/2024

This measure establishes an all-payer claims database.

It requires healthcare payers to provide healthcare claim data to the database within 3 months of it becoming operational. It includes the following entities in the definition of healthcare payers: Medicare, Medicaid, CHIP, workers’ compensation insurers and self-insurers/self insured groups, healthcare insurers and self-insurers/self insured groups, including employer organized associations, HMOs, limited health service organizations, nonprofit hospitals, medical-surgical, dental and health service corporations, administrators, pharmacy benefit managers, and other third parties not exempt under federal law. It allows assessment of civil penalties for violations of this requirement.

It requires submission of claims data on medical and hospital claims, including surgical, mental heal and substance use disorder, as well as rehabilitative services. It also requires submission of dental and pharmacy claims, and anything else designated under administrative regulation. It specifically excludes claims for primary care services.

It affords the database basic administrative considerations, including hiring an executive director and staff, appointing an advisory committee, and the ability to contract with entities, including other state’s APCDs. It requires compliance with HIPAA and other federal laws, and does not require individual consent to provide data to the database. It allows sharing data with payers, consumers, providers and state agencies in a manner that protects the privacy and security of health information. It forbids sale or commercial use of the data, as well as attempts to reidentify individuals using the data.

It requires federal waiver application within 90 days of taking effect, if determined to be necessary.

Most Recent Update:

03/01/2024 This measure has been referred to the Senate Appropriations & Revenue Committee. This measure awaits consideration in the committee.

Kentucky Regulatory Updates 3/3/2023

HB 322 – An Act Relating to Workers’ Compensation.

Issues: Workers’ Compensation (General)

Summary:

This measure provides that the Division of Workers’ Compensation Funds is required to engage in an optional program to resolve its outstanding liabilities through lump-sum settlements for as many claims as practicable, beginning with those receiving the smallest weekly benefits, by January 1, 2024. The measure provides that if an injured worker chooses to receive a lump-sum payment, they may elect to be represented in the settlement process by an attorney of their choice. The measure also provides that the legal fees of the injured worker are required to be paid from the special fund in addition to the lump-sum payment and the legal fees are prohibited from exceeding more than one percent of the lump-sum payment. The measure changes the rate of the special fund assessment rate to not less than six percent of the amount of workers’ compensation premiums received by every insurance carrier writing workers’ compensation insurance in the state. This measure allows the special fund to contract with a third-party administrator for the lump-sum settlement of claims and provides that when the special und balance has reached a balance sufficient to produce enough revenue to amortize the balance of the remaining claims and to fund the operations, it will be used for the sole purpose of financing programs within the Education and Labor Cabinet.

Most Recent Update:

02/25/2023 This measure has been introduced. This measure awaits committee referral.

HB 488 – An Act Relating to Workers’ Compensation.

Issues: Workers’ Compensation (General), Workers’ Compensation (Medical Marijuana)

Summary:

This measure relates to presumption of causation based on presence of delta-9-tetrahydrocannabinol (marijuana.) If the presence is greater than (5) nanograms per milliliter, the employer has the burden of proof that the presence of marijuana caused the injury or occupational disease. If the presence is less than that, then there is an irrebutable presumption it did not cause the injury or occupational disease. It does not list an effective date.

Most Recent Update:

02/24/2023 This measure has been introduced. This measure awaits committee referral.

HB 530 – An Act Relating to Workers’ Compensation For Educators.

Issues: Workers’ Compensation (General)

Summary:

This measure provides workers’ compensation coverage to educators at public and private schools for a psychological, psychiatric, or stress-related changes. This includes post-traumatic stress disorder when diagnosed within 3 years of employment as an educator. It does not list an effective date.

Most Recent Update:

02/22/2023 This measure has been introduced. This measure awaits committee referral.

Kentucky Regulatory Updates 2/6/2023

HB 122 – An Act Relating to Workers’ Compensation.

Issues: Workers’ Compensation (General)

Summary:

This measure permits the commissioner to contract with the University of Kentucky and the University of Louisville medical schools and other qualified physicians to evaluate workers who have been affected by occupational diseases. This measure states that the procedure for determining occupational disease claims should include the commissioner sending the worker’s compensation claim to an administrative law judge who will then refer the employee to a doctor or medical facility. This measure takes effect 90 days after adjournment.

Most Recent Update:

01/05/2023 This measure has been introduced. This measure awaits committee referral.

HB 121 – An Act Relating to Occupational Disease Claims.

Issues: Workers’ Compensation (General)

Summary:

This measure no longer requires two years of employment in Kentucky for an administrative law judge to oversee a case where an employee whose previous diagnosis of occupational pneumoconiosis from exposure to coal dust progressed into a respiratory impairment. This measure takes effect 90 days after adjournment.

Most Recent Update:

01/05/2023 This measure has been introduced. This measure awaits committee referral.

Kentucky Regulatory Updates 4/11/2022

HB 598 – An Act Relating to Workers’ Compensation

Issues: Workers’ Compensation (Medical Marijuana), Workers’ Compensation (General)

Summary:

This measure relates to workers’ compensation, providing the presumption that in cases of injury or death, evidence of tetrahydrocannabinol within an  employee’s body is not the cause of the injury. This presumption is rebuttable or nonrebuttable depending on the concentration of tetrahydrocannabinol found. This bill relates to workers’ compensation liability. This measure provides that if a scientifically reliable test reveals that the employee had a level of five (5) nanograms or more of delta-9-tetrahydrocannabinol per milliliter, and no other unprescribed substance or prescribed substance in amounts in excess of prescribed amounts is found through scientifically reliable testing, there cannot be a presumption that the introduction of the delta-9-tetrahydrocannabinol into the employee’s body caused the injury, occupational disease, or death of the employee, and the employer must have the burden of proving the injury, occupational disease, or death was proximately caused by the introduction of delta-9-tetrahydrocannabinol into the employee’s body. If a scientifically reliable test reveals that the employee had a level of less than five (5) nanograms of delta-9-tetrahydrocannabinol per milliliter, and no other unprescribed substance or prescribed substance in amounts in excess of prescribed amounts is found through scientifically reliable testing, there must be an irrefutable presumption that the introduction of the delta-9-tetrahydrocannabinol into the employee’s body did not cause the injury, occupational disease, or death of the employee.

Most Recent Update:

2/25/2022 This measure has been introduced by Representative Alan Gentry (D). This measure awaits referral to a House Committee.

Kentucky Regulatory Updates 2/3/2022

HB 165 – An Act Relating to Occupational Disease Claims

Issues: Workers’ Compensation (Medical Coverage and Reimbursement), Workers’ Compensation (General)

Summary:

This measure expands eligibility for employees with previously-diagnosed occupational pneumoconiosis to submit applications for reevaluation of their workers’ compensation. This measure deletes a requirement that an employee must continue to work in Kentucky for two years prior to submitting an application showing the progression of previously-diagnosed occupational pneumoconiosis for a reevaluation of their workers’ compensation.

Most Recent Update:

1/4/2022 This measure was introduced on January 4. This measure is eligible for a committee referral.

Kentucky Regulatory Updates 4/2/2021

HB 140 – An Act Relating to telehealth

Issues: Medicaid Managed Care, Workers’ Compensation (Medical Coverage and Reimbursement), Workers’ Compensation (General), Mandated Benefits

Summary:

This measure creates and amends Kentucky code regarding telehealth, including to: (i) standardize terminology, (ii) conduct a study on the effects of telehealth, (iii) place restrictions on what and how state agencies may promulgate regulations regarding telehealth, and (iv) and provide for parity in Medicaid services and for all insurers for services provided by a home health agency.

Most Recent Update:

3/22/2021 This measure has been enacted.

HB 282 – An Act Relating to Workers’ Compensation

Issues: Workers’ Compensation (Direction of Care), Workers’ Compensation Managed Care, Workers’ Compensation (General)

Summary:

This measure amends Kentucky code regarding which physicians may perform evaluations in occupational disease claims. This measure eliminates the requirement that physicians who may be selected to perform evaluations in occupational disease claims must be “B” readers who are licensed in Kentucky and are board-certified pulmonary specialists. This amendment applies to who the commissioner may contract with or select to perform evaluations. This measure does not outline any rulemaking or enforcement mechanisms. This measure will take effect on June 28, 2021.

Most Recent Update:

3/30/2021 This measure failed upon adjournment of the legislature on March 30. This measure will not carry over to the 2022 Legislative Session. This measure would need to be reintroduced to receive reconsideration.

Kentucky Regulatory Updates 3/5/2021

HB 282 – An Act Relating to Workers’ Compensation

Issues: Workers’ Compensation (Direction of Care), Workers’ Compensation (General)

Summary:

This measure amends Kentucky code regarding which physicians may perform evaluations in occupational disease claims. This measure eliminates the requirement that physicians who may be selected to perform evaluations in occupational disease claims must be “B” readers who are licensed in Kentucky and are board-certified pulmonary specialists. This amendment applies to who the commissioner may contract with or select to perform evaluations. This measure does not outline any rulemaking or enforcement mechanisms. This measure will take effect on June 28, 2021.

Most Recent Update:

2/2/2021 This measure has been introduced for the 2021 legislative session. This measure awaits committee referral.

Kentucky Regulatory Updates 05/01/2020

HB 211 – AN ACT relating to workers’ compensation

Issues: Workers’ Compensation (Medical Coverage And Reimbursement), Workers’ Compensation (General)

Summary:

This measure amends existing Kentucky code regarding compensation benefits timelines.

This measure removes structured compensation benefits timelines. The measure requires that the employer pay for the cure and relief of an injury at the time of the injury and throughout the length of any disability.

Most Recent Update: This measure failed upon adjournment of the legislature on April 15. This measure is not eligible to be carried over to the 2021 Legislative Session. It would need to be reintroduced to receive reconsideration.

HB 436 – An Act Relating to Mental Health and Making an Appropriation Therefor.

Summary:

This measure amends KRS 210.365 regarding compensation for firefighters who suffer from post-traumatic stress injury (PTSI) and post-traumatic stress disorder (PTSD).

This measure annually appropriates funds to a program designed to care for and treat all full-time professional and volunteer firefighters affected by PTSI and PTSD. PTSI and PTSD are defined to align with the American  Psychiatric Association’s Diagnostic and  Statistical Manual of Mental Disorders.

This measure requires a firefighter to be diagnosed with PTSI or PTSD by a psychiatrist, psychologist or counselor who determines that the disorder was caused by an event or accumulation of events that occurred within the firefighter’s scope of employment.

Once diagnosed and after utilizing in-network health insurance, this measure allows a firefighter to submit receipts to the commission for medical bills associated with mental health treatment. Reimbursement will come from the aforementioned fund. The firefighter must pay their out-of-pocket share before submitting for reimbursement. This measure will apply to each firefighter for the 12 months immediately following initial mental health treatment.

Most Recent Update: This measure failed upon adjournment of the legislature on April 15. This measure is not eligible to be carried over to the 2021 Legislative Session. It would need to be reintroduced to receive reconsideration.

Kentucky Services

• Directed channeling to top quality providers
• State-approved utilization management program
• Workers’ compensation claims administration and medical bill review

Kentucky Resources

Kentucky Compensation Website

Kentucky Government Website