SECOND INJURY FUND BY DEB HANDRAHAN WCT CLAIMS SUPERVISOR AND HEATHER OVERSON CLAIMS REPRESENTATIVE, NHADA In 2023, the NHADA Workers’ Compensation Trust (WCT) recovered $467,364.22 from the Second Injury Fund for payments made on workers’ compensation claims in 2022. This is the second highest recovery since 1990. We have recovered nearly $8 million since 1990 with the help of our NHADA WCT members. The Second Injury Fund in New Hampshire was implemented in 1975 as a way to encourage employers to hire applicants with physical or mental impairments. The Second Injury Fund reimburses a portion of the workers’ compensation payments that carriers or self-insured’s pay, when an employee with a documented pre-existing condition suffers a work-related injury which results in a greater disability than would have been caused by the subsequent injury alone. Therefore, it reduces the workers’ compensation liability of hiring someone with a pre-existing permanent impairment. The Second Injury Fund reimburses 50% of medical and indemnity payments for the first 104 weeks of disability and 100% thereafter, after a $10,000 deductible. Payments for permanent impairment, vocational rehabilitation, attorney fees and expenses to the file are not reimbursable. Lump sum settlements which are pre-approved by the Special Fund are reimbursable with the exception of the permanent impairment portion of the settlement. The critical piece of a successful Second Injury Fund claim is the employer’s knowledge of the employee’s pre-existing condition. The employer must have written documentation supporting their knowledge of the pre‑existing condition before the injury in the workplace occurs. One way of documenting pre-existing conditions is the Second Injury Fund Post Conditional Offer Medical Form (the Second Injury Fund Form). To view the form, scan the QR code. https://4829685.fs1.hubspotusercontent-na1.net/ hubfs/4829685/Everything%20Second%20Injury%20 Fund.pdf This form must be completed after the conditional offer of employment has been made and before the applicant begins work. The information included in the form will not adversely affect their employment unless they are not forthright with the information. In addition, it will not change their entitlement to workers’ compensation benefits should they sustain a work‑related injury. Remember that the pre-existing condition can be a work‑related or non-work-related medical condition, but must be of a serious nature, which may be considered a hindrance to employment opportunities. NHADA WCT members who take the time to explain the Second Injury Fund form to new hires and double-check to ensure that it is completed accurately have the highest Second Injury Fund recoveries. The time spent reassuring a new hire about the Second Injury Fund form could mean the difference between a successful Second Injury Fund claim and no reimbursement at all. When a current employee reports a non-work-related medical condition which requires time out of work — such as a ski/snowboard injury, surgery, heart condition, etc. — the actual doctor’s note should be retained in the employee’s confidential medical file separate from the personnel file. If the employee does not provide medical documentation, a note can be placed in the confidential medical file, signed and dated by the employer documenting the medical condition at the time the employee either leaves or returns to work. Short-term disability forms, FMLA forms, text messages, emails or correspondence to the employee regarding leaves of absence or sick time serve as excellent documentation for employer knowledge for a Second Injury Fund claim. In August 2024, we will request reimbursement for 2023 payments, and we will receive reimbursement in April of 2025. Members who review their quarterly loss runs who have accepted Second Injury Fund claims will see the total incurred costs on those claims decrease year after year as recoveries are credited. Ultimately, if the costs of the claims for the year of the original Second Injury Fund claim are less than the premium paid into the WCT, money will be returned to the member in rebate. Deb Handrahan or Heather Overson are available to meet with employers to review the Second Injury Fund process. If members would like to meet with Deb or Heather, please contact them at dhandrahan@nhada.com or hoverson@nhada.com or call (603) 224-2369. 22
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