Oregon Announces Actions Necessary For Compliance With New Proof Of Coverage Law

Salem, OR (CompNewsNetwork) - Starting July 1, 2009, Oregon will have a new proof of coverage system for workers' compensation insurance. Every company that writes workers' compensation insurance in Oregon must comply with the new law. The new system requires electronic data interchange (EDI) reporting. This means insurers must send policy-based coverage information electronically starting July 1, 2009.

To ensure a smooth transition, insurers must take certain actions in 2008 to prepare for the new reporting system. The Department of Consumer and Business Services has prepared a transition plan providing background and detailing the required actions. The plan is included with this notice. It is also available on the division's Web site at http://www.cbs.state.or.u s/wcd/communications/sb559.html.

By Dec. 31, 2008, insurers must:

• Designate a vendor or state intention to direct report. This applies only to insurers that do not currently send the department guaranty contract information by EDI.
• Sign a trading partner agreement effective July 1, 2009, to send guaranty contract information electronically.

This applies only to insurers that do not currently send guaranty contract information by EDI.

• Prepare to send two years of historical policy data information to the department (due in early 2009).
• Initiate the EDI testing process if direct reporting or using a vendor that is not yet approved by the department.

The transition plan also outlines the department's compliance expectations during the transition from guaranty contracts to policy-based proof of coverage.

The administrative rules process to implement the new law has started. The department will hold a public hearing on proposed rules on Aug. 21, 2008. Proposed rules are on the division's Web site at http://www.cbs.state.or.u s/wcd/communications/sb559.html.

If you have questions, contact Cara Filsinger, Worker's Compensation Division project manager, at 503-947-7582 or cara.l.filsinger@state.or.us.

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