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2021 Legislative Update

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Colorado Division of Workers’ Compensation’s 2021 Legislative Update
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Announcements & Reminders

 Stay Tuned for Upcoming Rule Changes

  • Changes in legislation will require adopting new emergency rules, effective September 6, 2021. These anticipated rule changes reflect the provisions in House Bill 21-1050 related to the timely payment of benefits and conservatorship. Additional information on the upcoming changes will be shared on our website.
    • Some emergency rules will require programming changes for insurance carriers and self-insureds. 

 Surcharge Rates

  • Workers’ Compensation Cash Fund: 1.35%
  • Premium Cost Containment Program: 0.01%
  • Subsequent Injury Fund/Major Medical Fund: 0.10%
  • Calculate, File, and Pay surcharge online

 Worker's Claim for Compensation (WC 15)

 2021 Workers’ Compensation Act

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Statutory Changes

This year the General Assembly adopted two bills that impact workers’ compensation in Colorado. This summary briefly highlights some of the key substantive and procedural changes.

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 Bill HB21-1207 - Overpayment of Workers’ Compensation Benefits

  • Signed: May 17, 2021
  • Effective: January 1, 2022
  • Key Changes:
    • Limits the definition of overpayments to those which occur because of fraud, duplication of benefits (i.e., offsets or wages), or errors on an admission.  
    • Temporary benefits paid after the date of MMI are no longer considered overpayments; however, they can be credited against permanency. 

 Bill HB21-1050 - Workers' Compensation Act of Colorado

  • Signed: July 6, 2021
  • Effective: September 7, 2021
  • Key Changes:
    • Reduces the maximum benefit cap from 25% to 19%.
    • Benefits are considered timely paid as of the date of receipt, or three days after mailing if postmarked at least three business days prior to the due date.
    • A benefit or penalty must be at issue before compensability is considered ripe for litigation.
    • Mileage must be submitted 120 after incurred, paid within 30 days.
    • Read the full bill language for other important updates including offsets, apportionment, appeals, and more.
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Rule Changes

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 Rule 4 - Carrier Compliance    

  • The Colorado Division of Workers’ Compensation adopted rule language, effective April 30, 2021, introducing a new audit for carriers and changing the current fine structure.   
  • Key Changes: 
    • Changes to the claim audit fine structure and allows for resetting of claim audit fines after a successful audit.
    • A new Policy Compliance Audit.

 Rule 6 - Modification, Termination, or Suspension of Temporary Disability Benefits    

  • The Colorado Division of Workers’ Compensation adopted rule language, effective July 1, 2021, that allows for retroactive modification of benefits.  
  • Key Changes: 

Want to receive rule hearing notices? Click here!

 Rule 5 - Claims Adjusting Requirements

  • The Colorado Division of Workers’ Compensation adopted rule language, effective July 1, 2021, that changes the claims adjusting requirements.  
  • Key Changes: 
    • Allows for electronic filing of admissions and motions.
    • Changes the reporting requirements for fatalities and when more than three people are injured in the same accident.
    • Changes to Final Admissions required attachments. The Physician’s Report of a Workers’ Compensation Injury (WC 164) is no longer required unless concurrently provided.

 Rule 7 - Closure of Claims and Petitions to Reopen    

  • The Colorado Division of Workers’ Compensation adopted rule language, effective July 1, 2021, that removes a step in the reopening process.
  • Key Changes: 
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Updated Forms

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  • WC15 - Worker's Claim for Compensation
  • WC43 - Rejection of Coverage by Corporate Officers or Members of a Limited Liability Company
  • WC45 - Rejection of Coverage By Partners and Sole Proprietors Performing Construction Work on Construction Sites
  • WC49B - Workers Compensation Act Poster (Spanish Version) 

  • WC54 - Petition to Modify, Terminate, or Suspend Compensation/Objection to Petition to Modify, Terminate, or Suspend Compensation
  • WC112 - Payroll Statement Form
  • WC113 - Surcharge Form
  • WC181 - Medical Billing Dispute Resolution Intake Form
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Updated Publications

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Previous Legislative Updates