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The Schedule for Rating Permanent Disabilities - Part 2

Saturday, February 12, 2005 | 0

The following article by Luis Perez-Cordero, MA, AAPMR, Impairment & Disability Rating Specialist, due to its length, has been broken down in to two parts. The first part provided guidance on what to expect from physicians in their reports in order to be rateable under the new permanent disability rating schedule. This second part of the series will provide guidance on how to actually perform a rating using the new schedule.

LC section 4660's Implementing Tool - 8 CCR section 9805: The Schedule for Rating Permanent Disabilities

The Schedule is to promote consistency, uniformity and objectivity L.C.S. section 4660(d). "Nature of Physical Injury' to be described Using AMA Guides, 5th Edition. Applies to all dates of injuries for which a P&S/MMI report has not been issued by a PTP or QME. P&S/MMI medical reports continue to follow California Code of Regulation Guidelines, principally 8 CCR WCAB section 10606

L.C.S. section 4660(a) - In determining the percentage of permanent disability, account shall be taken of (1) The nature of the physical injury or disfigurement, (2) The occupation of the injured employee, and (3) His/her age at the time of injury, consideration being given to an employee's diminished Future Earning Capacity (FEC).

The evaluating physician consolidates the various impairments for the body part being rated into an AMA Whole Person Impairment rating standard (WPIRS). If rating multiple joints in an extremity, the spine and/or multiple organ systems, physician's does not combine into a WPIRS%, since each extremity joint, spinal segment or body organ system must first be adjusted by the corresponding diminished earning capacity modifier (FEC), Occupation and Age.

To abide with LC section 4664(c)(1)(2), then and only then does the combination values chart tables in Section 8 apply. If an evaluating physician provides you with an AMA Whole Person Impairment Rating Standard for multiple joints of an upper extremity that is not what you rate. If the extremity impairment addresses an impairment to the shoulder, wrist and hand, you must rate each WPIRS% for the individual body parts and then apply the Combined Values Chart on pages 8-1 and 8-2 of The Schedule.

Calculating a Ratings - L.C.S. section 4660(a)(b)(1)(2)
Section 2 Of The Rating Schedule - Impairment Numbers & Earning Capacity Adjustments

Nature of the physical injury or disfigurement shall incorporate descriptions and measurements of physical impairments and their corresponding percentages published in the (AMA) Guides 5th Edition. Employee's diminished future earning capacity (FEC) shall be a numeric formula based on empirical data and findings that aggregate the average percentage of long-term loss of income resulting from each type of injury for similarly situated employees. The AD shall formulate the adjusted rating schedule based on empirical data and findings from the Evaluation of California's Permanent Disability Rating Schedule, Interim Report (December 2003), prepared by the RAND Institute for Civil Justice, and upon data from additional empirical studies.

AMA Impairment to California Disability via The Rating Schedule
Body Part or Organ System Adjustments
AMA Rating Schedule Modifications - Sections 2-to-6 CA Disability
Medical Report
WPIRS%
(New Rating Standard)
FEC Modifier (Diminished Earning Capacity) Occupation Modifier Age Modifier Modified % of Permanent Disability


Before adjusting for occupation and age, the WPIRS% must be adjusted by the FEC modifier. The FEC Rank Appears next to the Impairment Number in Section # 2 of The Rating Schedule, pages 2-1 to 2-5. The Future Earning Capacity (FEC) Adjustment Table appears on pages 2-6 and 2-7 of The Rating Schedule. "The adjustment for diminished future earning capacity (FEC) is applied to the impairment standard in accordance with procedures outlined in Section 2 of The Schedule." An impairment must be expressed using the whole person impairment scale (WPIRS%) before applying the FEC adjustment." - Schedule page 1-5.

Joints/Organ System FEC Multipliers & Ranks
Body Section FEC Multiplier FEC Rank
Eyes-Vision 1.1000 1
Heart Disease 1.2714 5
Abdominal 1.3143 6
Post Traumatic Head Syndromes 1.3143 6
Pulmonary-Lungs 1.3571 7
Hearing 1.4000 8
Psychiatric 1.4000 8
Cervical Spine 1.2714 5
Thoracic Spine 1.2714 5
Lumbar Spine 1.2714 5
General Upper Extremity 1.2714 5
Shoulder 1.3571 7
Elbow-Forearm 1.1429 2
Wrist 1.2286 4
Hand Strength (Grip) 1.2286 4
Fingers-Hand 1.1000 1
General Lower Extremity 1.2714 5
Hip 1.2714 5
Knee 1.1429 2
Ankle 1.1429 2
Toe(s) 1.2714 5
Other
Rib Cage/Chest Impairments, Mouth, Jaw, Speech, Nose, Smell, Taste, Cosmetic or Facial Disfigurement / Epilepsy, Skull Apertures
1.1429 2


The New Rating Formula - Impairment-to-Disability Rating Mechanics After 01-01-2005
XX. XX.XX. XX - ______%- [ ____ ] _____% - ( __ __ __ ) - ___- ______% - _______%
Impairment # a) b) c) d) AMA WPIRS% FEC Rank (1 to 8) Weighted WPIRS% for FEC Occupational Group # (3 Digits) Occupational Variance (C-J) Weighted % for Occupation Weighted % for Age (Disability)
#1 #2 #3 #4 #5 #6 #7 #8
AMA Guides Impairment California Rating Schedule Modifications -Sections 2 to 7 California Disability


(#1) Impairment Rating Number- Schedule Section # 2

1) Determine the nature of injury (body part or organ system being rated). In Section # 2 of The Schedule, pages 2-1 to 2-5 find the impairment rating # and the FEC Rank for the body part(s) being adjusted from an AMA Impairment to a California Disability.

a) AMA Chapter # (03- to 18) for the 'nature of physical injury'

b) Body Part/Organ System Number - 02 Digits

c) Impairment Rating Evaluation Method; (1) Range of Motion (ROM), or (2) Diagnosis Related Estimates (DRE).

d) Varies according to AMA Impairment

(#2) AMA Whole Person Impairment Rating Standard % - WPIRS%) Single Joint - Spinal Segment or Body System

2) From the PTP/QME/AME P&S Report, obtain the WPIRS% for each joint in a single extremity (not fingers or toes), spinal segments (cervical-thoracic-lumbar) and organ system being adjusted.

a) Verify and correct mathematical calculation errors of the Whole Person Impairment Rating % provided by the evaluating physician.

b) Convert any specific joint scale (hand scale) or regional scale (upper extremity scale) to a whole person impairment scale before applying the Rating Schedule Modifications
i) Section # 7 of The Schedule provides you with illustrated examples.

c) Enter whole person impairment rating (WPIR%) into the formula before multiplication by Diminished Earning Capacity (FEC) modifier

(#3) Diminished Earning Capacity (FEC) Rank - Section # 2 of The Schedule
Before Adjustment for (1)Occupation and (2) Age.
Before The Application of The Combined Values Chart in Section # 8 of The Schedule.
(#4) Weighted WPIRS%

3) Next to the Impairment #, you will also find the FEC Rank. Enter next to the WPIRS% and place brackets [ ] around it to distinguished from the WPIRS%.

a) To adjust manually: Obtain the FEC Adjustment Factor multiplier [FEC x] from Tables 'A' & 'B' on page 1-7 of The Schedule. (Mathematically round to the nearest whole percentage.)

b) Using The FEC Adjustment table on pages 2-6 and 2-7 of The Schedule you can also do the AMA WPIRS%' FEC modification.

Enter the modified WPIRS% next to the [FEC] Rank - # 4

(#5) Occupational Group Number & (#6) Occupational Variant - C to J
(#7) (Weighted WPIRS%) Occupational Adjustment


4) Enter the three (3)-Digit Group Number for the occupation of the injured worker on the date of injury (From Section # 3 of The Schedule - Occupations & Group Number).

a) 43 new occupations added to this section

b) New Group # 493 - Addresses the physical demands of non-professional athletes.

c) Enter The Occupational Letter Variant.

d) Use The Occupational Adjustment Table in Section # 5 to adjust #4 for occupation. After this adjustment, we refer to the percentage as a Modified (%) For Occupation.
i) "Occupational Variant Table" correlates the disability numbers with an occupational group classification and indicates which of eight (8) possible variants, "C" through "J", applies.
ii) Occupations are assigned a modifying letter, which reflects the level of seriousness of a particular injury upon that occupation.
iii) The Schedule correlates the impairment and occupation automatically by increasing the impairment standard rating if the group to which the particular job is assigned reflects greater than average physical demands. It lowers the rating standard for those groups in which the physical demands are less than average for the impairment under consideration.
(#8) Age Modification

5) Modify (#7) for Age.

a) Section # 6 of The Schedule: Provides the age adjustment table. Combines the age groups into 5-year increments. The rating is the same for any of the ages within each 5-year cluster.
i) Ages 21 to Age 36 adjust the modified WPIRS% downwards.
ii) Ages 37 to 41 - the midpoint of the Table.
iii) Ages 42 to 62+ adjust the WPIRS% upwards.

Combined Values Chart
WPIRS% Impairment Rating %: Multiple Joints- Spinal Segments - Body Systems

Multiple: Joints One or Both Extremities / Spinal Segments/ Body Parts/Systems Regional Impairment %

A. From the PTP/QME/AME MMI/P&S Report, obtain the specific joint/body WPIRS% for each of the multiple injured body parts and/or impairments to be adjusted.
a) If the whole person percentage of impairment reflects the combination of (1) multiple segments of the spine, (2) multiple body parts or (3) joints within one or both extremities, deconstruct/convert the whole person % back to the specific body part WPIRS%.
b) Multiple Disability/Combination Principles cannot be applied until the whole person impairment % has been modified its corresponding Diminished Earning Capacity (FEC) modifier.
c) Once the impairment-rating % has been converted to a California Disability Percentage, then apply the Combination Principles outlined in Section # 7 of The Schedule - Rules for Combining Multiple Disabilities.
d) Never combine impairment and disability percentages.

Payment of Partial Permanent Disability
Weeks @ 2/3 Average Weekly Earnings for each1% PD.
L.C.S. section 4658 Increased # of weeks for injuries after 01-01-2004.

* New Tables for 2005 & 2006 will show the 15% - vocational modifiers.

* The table below can help you PD Indemnity Tables or verify the accuracy of any tables you might receive.

Effective 1-1-2005
L.C.S. section 4658 (d)(1): Permanent Disability Computation
For Injuries On Or After 01-01-2005
R = Is The Modified % of Permanent Disability
Column # 1 Column # 2
Top of Form
Bottom of Form
Then the Total Number of Weeks is:
0.25% to 9.75% R x 03
10% to14.75% 04 x (R - 09.75) + 29.25
15% to 24.75% 05 x (R - 14.75) + 49.25
25% to 29.75% 06 x (R - 24.75) + 99.25
30% to 49.75% 07 x (R - 29.75) + 129.25
50% to 69.75% 08 x (R - 49.75) + 269.25
70% to 99.75% 16 x (R - 69.75) + 429.25


L.C.S. section 4658 (d)(1):60 Days After The Condition Becomes Permanent & Stationary (P&S) (Not Applicable for Employers with less than 50 employees)

Increase Disability Payment by 15% - L.C.S. section 4658 (d)(2)

If, within 60 days of a disability becoming P&S, an employer does not offer the injured employee regular work, modified work, or alternative work, in the form and manner prescribed by the administrative director, for a period of at least 12 months, each disability payment remaining to be paid to the injured employee from the date of the end of the 60-day period shall be paid in accordance with paragraph (1) and increased by 15 percent. This paragraph shall not apply to an employer that employs fewer than 50 employees.

Decrease Disability Payment by 15% - L.C.S. section 4658 (d)(3)(A)

If, within 60 days of a disability becoming permanent and stationary, an employer offers the injured employee regular work, modified work, or alternative work, in the form and manner prescribed by the administrative director, for a period of at least 12 months, and regardless of whether the injured employee accepts or rejects the offer, each disability payment remaining to be paid to the injured employee from the date the offer was made shall be paid in accordance with paragraph (1) and decreased by 15 percent.

Increase (Again) Disability Payment by 15% - L.C.S. section 4658 (d)(3)(A)

If the regular work, modified work, or alternative work is terminated by the employer before the end of the period for which disability payments are due the injured employee, the amount of each of the remaining disability payments shall be paid in accordance with paragraph (1) and increased by 15 percent. An employee who voluntarily terminates employment shall not be eligible for payment under this subparagraph. This paragraph shall not apply to an employer that employs fewer than 50 employees.

Article by Luis Perez-Cordero, MA, AAPMR. Luis can be reached at pdrating@pacbell.net.

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The views and opinions expressed by the author are not necessarily those of workcompcentral.com, its editors or management.

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