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(651) 284-5000
St. Paul, Minnesota 55155 1-800-DIAL-DLI TTY: (651) 297-4198

Workers' Compensation Advisory Council

June 14, 2006

Voting members: Staff members:

David Olson David Berry

Diane Edwards for Julie Schnell Scott Brener
Gary Thaden Debbie Caswell
Ray Waldron Phil Moosbrugger
Patricia Todd
Voting members excused: Jana Williams

James Cavanaugh Visitors:

Wayne Ellefson
Don Gerdesmeier Ray Bohn; WCRA
Mike Hickey Paul Cassidy; Leonard, Street & Deinard
Glen Johnson Greg Coon
Reed Pollack Judy Hawley; MN Chp APTA
Tom Hesse; MN Chamber
Voting members absent: Brian Hicks; MAPS
Todd Johnson; WCRA
Brad Robinson Tammy Lohmann; Commerce
Stan Daniels Elisabeth Long; House Research
Bob Lund; State Fund Mutual
Nonvoting members: Louise Montague; MOTA/Ergo Results
Andy Morrison; Koll, Morrison
Representative Denny McNamara Mark Pixler; MAPS
Katy Sen; DFL House Research
Nonvoting members absent: Scott Sexton; Corvel
Dan Wolfe; MN APTA
Senator Tom Bakk David Wulff; MTLA
Senator Geoff Michel
Representative Mike Nelson

Commissioner Scott Brener called the meeting to order at 9:40 a.m. Roll was
called. There was no quorum, so the minutes from the March 1, 2006, meeting were

IV. A. Commissioner's update

Brener reported he directed Assistant Commissioner Patricia Todd to look at how

the workers' compensation system is handled in the department's Workers' Compensation
Division and redesign that process. He believes in data processes, such as those that
banks and health care providers have already had in place for decades. The department
currently receives paper and converts it to an electronic format with imaging. The
Department of Labor and Industry (DLI) is exploring converting the workers'
compensation system from this form-driven system to a data-driven system. These are
Workers' Compensation Advisory Council -2- June 14, 2006

natural synergies that would lower costs to the system and provide greater customer
assistance. Todd put together a steering committee that will be working on this project for
the next year or so.

Brener noted that Todd is finalizing performance indicators so DLI can better
manage productivity levels within the Workers' Compensation Division's administrative
unit. The performance indicators will be completed by the end of June and DLI will be
able to track trends and determine how fast they are working through business functions,
to help rid itself of some of the existing processes hurtles. The process will be
streamlined and will provide greater customer service to the stakeholder groups in the
workers' compensation system.

Brener announced that Jim Feckey retired as director of the Special Compensation
Fund. Carol Pankow was hired to replace him. Pankow worked at the Department of
Human Services and is currently the CEO of a nonprofit institution. She will begin at DLI
July 5, 2006.

Brener reported DLI finished its pharmaceutical rulemaking process regarding

reimbursement levels under electronic eligibility scenarios. The treatment parameters
concerning the three most heavily prescribed drug classes in workers' compensation are
being finalized. The Medical Services Review Board is working with Dr. Bill Lohman on
those parameters.

IV. B. Summer/fall road trips

Brener noted that at the last meeting, some Workers' Compensation Advisory
Council (WCAC) members indicated an interest in taking the advisory council on the
road to hear about the state of the workers' compensation system and any suggestions for
improvements from stakeholders. He asked members if they would poll their membership
to find out if they wanted to pursue the trips and indicated he was willing to work on it
from a scheduling perspective.

Ray Waldron said the employee representatives were still interested in road trips,
but he did not know what cities should be scheduled. He agreed to provide three or four
cities from the employee representatives if there was still an interest. David Olson was
willing to do a couple of trips. It was agreed Waldron would handle coordinating the trips
with the employee representatives and Olson would coordinate the employer
representatives and work with the department to get the trips scheduled. Olson suggested
the WCAC do the outstate trips in August so it can work on the legislative bill this fall.
Olson and Waldron agreed to get together after the meeting to identify some dates when
they are available.
Workers' Compensation Advisory Council -3- June 14, 2006

IV. C. Policy formulation

Brener said there were no significant changes before the WCAC for its 2007
legislative package. Senate research contacted him regarding MIGA. He expects this
issue to be brought forth at the next meeting or two. The Minnesota Self-Insurers'
Association has an additional issue. Medical costs containment is a significant issue and
will be brought forth. Brener wants to work on the WCAC bill and have it ready by
November or December, and have the bill out in a timely manner in 2007. He noted these
issues are not new to the advisory council.

It was decided the Aug. 9 meeting would be canceled. The road trips would be
scheduled in August, if possible, or September and October and do one a month.

Waldron made a motion to adjourn at 9:52 a.m. Gary Thaden seconded the
motion. All voted in favor of the motion.

Respectfully submitted,

Debbie Caswell
Executive Secretary