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Legal Reforms Lower Attorney Involvement In Workers Compensation
Lost Time Claims
by N. Mike Helvacian and Kyumin Shim


Synopsis of State Reforms

Oregon (HB 1197, effective July 1, 1990): HB 1197 was part of
a series of reforms initiated in 1986 that contained specific 
provisions to reduce attorney involvement. This law established
an ombudsman program and restricted the compensability standard
to include "major contributing cause." The latter provision set 
standards for compensating highly litigious mental stress claims
and cumulative injuries (e.g., carpal tunnel). Following the
reform, the percentage of attorney involvement in the state
declined from 18.0 percent in 1992 to 12.8 percent in 1994, and
to 9.6 percent in 1995. Preliminary estimates indicate that it
may be as low as 6.5 percent in 1996.