NCIC full Commission award interest on medical compensation calculation program: data
This program calculates the interest due on medical compensation awarded by the NCIC full Commission pursuant to N.C.Gen. Stat. Sec. 97-86.2, which mandates that an employer that is ordered to pay compensation pursuant to an award of the full Commission pay interest on the award at the legal rate prescribed by N.C. Gen. Stat. Sec. 24-1. The rate prescribed by N.C.Gen. Stat. Sec. 24-1 is "eight (8%) per annum.Although the statutes are silent about whether simple or compound interest is to be paid, the Commission in Tracy W. Moore v. Standard Mineral Company, I.C. File No. 177919 (March 19, 1998) held that 8% simple interest (Math formula: Interest = Principal X Rate X Time) is to be paid unless the plaintiff can prove that s/he could have obtained a greater return than 8% simple interest on the compensation awarded. The Court of Appeals held in Childress v. Trion, 125 N.C. App. 588, 481 S.E.2d 697, disc. rev. denied, 346 N.C. 276, 487 S.E.2d 541 (1997), that interest is due not only on indemnity compensation awarded by the full Commission but also on medical compensation awarded as well. The method used by this program is modeled after the method used by Commissioner Thomas Bolch to calculate the interest on indemnity compensation due in Robert Moore v. Foam Ex, I.C. File No. 241740 (April 1, 1999). This program assumes 1. a charge for medical services rendered is due and payable on the date of service, 2. 1 year = 364 days for purposes of determining the daily rate of interest from 8% per annum, 3. interest on medical expenses rendered before the date of the hearing is calculated from the date of the hearing to the date of payment, and 4. interest on medical expenses rendered after the date of the hearing is calculated from the date of service to the date of payment. The program produces a total of the interest on the medical expenses entered.
This version of the program was released on
July 31, 2003.