MACo Resists Adjustments to Workers’ Compensation “Gap Period”

On March 11, Associate Policy Director Karrington Anderson testified before the Economic Matters Committee in opposition to HB 346 – Workers’ Compensation – Vocational Rehabilitation Services – Retroactive Compensation. 

This bill requires an employer or insurer to continue paying temporary total disability (TTD) benefits for up to 60 days after an injured worker reaches maximum medical improvement (MMI) if there is a delay before vocational rehabilitation services begin.

Known as the “gap period,” this timeframe can occur between the stabilization of a worker’s medical condition and the start of job retraining or workforce reentry services. Counties caution that mandating additional payments during this period may unintentionally create incentives for delays in initiating rehabilitation services while increasing financial obligations for public employers.

From MACo Testimony: 

While vocational rehabilitation ideally begins immediately after MMI, delays can occur for a variety of reasons that can be outside the employer’s control. The bill creates a financial incentive to delay the initiation of vocational rehabilitation services, as claimants could postpone requesting services while still becoming eligible for retroactive benefits during the gap period.

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