BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 1124 (Perea) - Workers' compensation: prescription medication
formulary.
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|Version: August 17, 2015 |Policy Vote: L. & I.R. 4 - 1 |
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|Urgency: No |Mandate: No |
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|Hearing Date: August 27, 2015 |Consultant: Robert Ingenito |
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*********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on August 27, 2015
Bill
Summary: AB 1124 would require the Administrative Director (AD)
of the Department of Industrial Relations' (DIR's) Division of
Workers Compensation to establish an outpatient prescription
drug formulary by July 1, 2017, as specified.
Fiscal
Impact:
DIR estimates that, under the August 17th version of the
bill, it would incur annual costs in the range of $1
million to $1.1 million (special funds) to implement its
provisions. As amended, the bill would likely have a
similar fiscal impact.
These costs would likely be ultimately offset by savings
in the workers' compensation system. The extent of the
AB 1124 (Perea) Page 1 of
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savings is unknown, but one report indicates that related
payments could be reduced in the range of $124 million to
$420 million annually. While most of these savings would be
realized by the private market, the State (as an employer)
would achieve an unknown portion.
Author
Amendments: Reinforce evidenced-based medicine, provide the AD
with authority for timely updates, and make clarifying changes.
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