Cost Containment
Within the Workers' Compensation Statute, there are built in cost containment measures. These include the second injury fund, reimbursement for job modifications that aid in bringing an injured employee back to work, and third-party actions.
Second Injury Fund
New Hampshire's Second Injury Fund gives employers an opportunity to limit their compensation costs in the event that an impaired employee sustains a workers' compensation injury which leaves him/her more disabled than the same injury would leave a non-impaired worker. The worker's original impairment can be of any type or cause - work related or not - as long as it is a permanent impairment and is serious enough to pose an obstacle to the worker in obtaining employment.
The intent of the Second Injury Fund is to equalize the compensation costs that the employer and his insurance company must pay for impaired and non-impaired workers alike, thereby removing a potential barrier to the employment of impaired workers.
At the time of hire - or as soon after hire as the information becomes known to you make note in writing of your knowledge of the employee's impairment. In the event of a Second Injury Fund claim in the future, this written record will need to be produced as evidence that you knew of the worker's impairment prior to the subsequent injury. The written record can take any form you wish (e.g. pre-placement physical examination report, a memorandum to the personnel file, interview notes signed and dated by the interviewer, or a letter from a rehabilitation counselor who knew the worker) as long as:
- The information is recorded in writing
- The record clearly identifies the employer, employee and the date that the record was created
- The record presents information about the worker's impairment and the limitations caused by the impairment
This is the only step that the employer needs to take. In the event that the impaired worker becomes seriously disabled from a workers' compensation injury in the future, the insurance company will initiate the process of applying to the Second Injury Fund and, as part of this, will ask the employer for a copy of this record. If the record is not available, the case will not be eligible for reimbursement from the Fund.
Second Injury Forms
Job Modification Reimbursement
RSA 281-A:54, IX, states: "Employers who incur costs for job modification for the purposes of retaining individuals for which a plan for modification has been approved by the commissioner shall be reimbursed 50 percent of the cost for such job modifications from the special fund for second injuries under RSA 281-A:55. Such reimbursement shall not exceed $5,000.00 per employer, per year. Before reimbursement shall be authorized, the employer shall submit the plan for modification to the commissioner for approval."
The procedure is fairly easy, but prior approval is necessary. The date of injury has to be after 01/01/91. There does not need to be any lost time. If there are any questions, please direct them to the Vocational Rehabilitation staff at the Department of Labor or refer to New Hampshire Administrative Rules Chapter Lab 504.03 Job Modifications Reimbursement.
In other words, if the employer pays for job modifications to a job site to retain or bring an employee back to work after a work-related injury, the employer may be eligible for reimbursement of 50 percent of the cost of the modifications up to $5,000.00 per year per employer.
- Request for Job Modification Plan Approval (WC-VR-01, 4-2018)
Third Party Actions
An employee whose job related injury is caused by the negligence of another party [except the employer, co-employees or the employer's insurer] may sue that party to recover damages for his injury. The employer or insurer who pays workers' compensation benefits has a lien to recover such payments from any settlement or award based on the suit. See RSA 281-A:13.