S CORPORATIONS

First, beginning January 1, 2017, the act authorizes a shareholder of an S corporation with at least 40% interest in the S corporation to elect to reject coverage under the Workers' Compensation Law by providing written notice. Failure to provide notice is not grounds for a shareholder to claim that the rejection is not legal. The rejection of coverage may be rescinded, however the shareholder will only be entitled to benefits that accrued on or after the date the notice is received by the insurance company. This act also exempts veterans' organization volunteers who are not paid wages from coverage under workers' compensation statutes.

This provision is identical to HB 1867 (2016) and similar to HB 148 (2015).

VETERANS' ORGANIZATIONS EXEMPTION

Second, the act exempts volunteers of qualified tax-exempt veteran's organizations from workers' compensation laws.

This provision is identical to a provision in SCS/HB 2429 (2016), HB 1867 (2016), and SCS/HB 615 (2015).

NOTICE OF DISPUTE

Third, currently a notice of dispute of a medical charge is required to be sent by certified mail. This act modifies that provision so that notice shall be sent by any of the following means:

• United State Postal Service certificate of mailing;

• First class mail using IMb; or

• Another mail tracking method used, approved, or accepted by the USPS.

Furthermore, the phrase "notice of dispute" is defined to mean a written explanation of benefits clearly including the term "Notice of Fee Dispute", which prominently evidences the payment is considered to be the full payment of the fee or charge.

This provision is similar to a provision in SCS/HB 615 (2015).

PREMIUM MODIFICATIONS

Fourth, the act inserts a new provision which modifies language relating to workers' compensation schedule rating. Specifically, it permits workers' compensation insurers to develop an individual risk premium modification rating plan using a schedule rating plan or a computer risk modeling system.

Current law provides that rating plans:

• Shall be actuarially justified;

• Shall not result in premiums which are excessive, inadequate, or unfairly justified; and

• Shall be applied on a statewide basis.

This act removes such provisions.

This provision is identical to a provision in SCS/HB 2429 (2016).

WORKERS' COMPENSATION PREMIUM RATES--SPLIT POINT

Currently, the uniform experience rating plan of workers' compensation insurance must prohibit an adjustment to the experience modification of an employer if the total medical cost does not exceed $1,000, the employer pays all of the medical costs, there is no lost time from the employment (subject to exceptions), and no claim is filed. This act changes the medical cost amount limit to 20% of the current split point of primary and excess losses under the uniform experience rating plan.

The act further provides that, for purposes of calculating the premium credit under the Missouri contracting classification premium adjustment program, an employer within the construction group of code classifications may submit to the advisory organization the required payroll record information for the first, second, third, or fourth calendar quarter of the year prior to the workers' compensation policy beginning or renewal date, provided the employer clearly indicates for which quarter the payroll information is being submitted.

These provisions are identical to SB 700 (2016), SB 288 (2015), and HB 1997 (2014).

SCOTT SVAGERA