NC H178

Direct the Office of State Personnel, in conjunction with the Department of Public Instruction and the Office of State Budget and Management, to study expenses related to management of workers' compensation claims for state and local government employees.

Study must examine identification of state agencies with budget line items for workers' compensation claim expenses and those without, and explain how expenses are paid and allocated including third-party administrator and legal fees.

Study shall recommend alternative budgeting methods for anticipated workers' compensation expenses, including fractional percentages based on payroll and historical data, and methods for lump sum claim settlements.

Study must identify strategies to motivate state agencies to return injured employees to work quickly and identify agencies suitable for pilot programs to test recommended efficiency improvements.

Office of State Personnel shall report findings and recommendations to the General Assembly no later than October 1, 2013.