The state’s handling of worker’s compensation claims for its own employees often results in late and inaccurate payments, according to a state auditor’s report released yesterday.
In one case, State Auditor Marion Higa found that a Department of Education employee waited more than 14 years to have her disability payment processed.
Hawai‘i’s workers’ compensation law is designed to provide benefits to employees who sustain work-related injuries or illness.
The state audit focused on the Department of Human Resources Development, the University of Hawai‘i, the Judiciary and the Department of Education, which represent about 97 percent of the state’s total number of open claims.
Higa recommended that state workers’ compensation managers improve their management to ensure timely and accurate payment of benefits to injured state workers.
She also recommended reducing the amount of time to schedule administrative hearings and issue decisions; amending the law to require annual reports by Jan. 31 of the next year; and monitoring and assessing penalties to ensure compliance with the law.
"We found that workers’ compensation benefits are neither timely nor accurate," the report said. "We found delays in each step of the workers’ compensation claims process."
Even after the workers’ compensation office authorized payments, long delays in payment still occurred. Higa said the Department of Education had a total of $133,000 in unprocessed disability payments, with one claimant waiting for $40,000.
The report also said 36 percent of the 85 cases reviewed contained errors in disability calculations. This type of error led to an overpayment of $520 to one claimant at the Department of Human Resources Development, the report found.
Higa also said payments for claimants’ medical services exceeded allowable amounts. In a sample of 108 bills, agencies overpaid medical bills by $30,871 or 56 percent.
The Department of Human Resources Development disagreed with some of the report’s findings, including those on late payments and calculation errors in disability payments.
Judiciary Administrative Director Michael Broderick said the report minimized constraints on the Judiciary, such as the state’s payroll system.
UH President Kenneth Mortimer said that in most cases claimants continued to receive either regular pay or sick/vacation pay.
Schools Superintendent Paul LeMahieu said the DOE has already taken steps to make improvements to its workers’ compensation program. LeMahieu also noted that the DOE Workers’ Compensation Section was understaffed.
