BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2503


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          Date of Hearing:  May 4, 2016


                           ASSEMBLY COMMITTEE ON INSURANCE


                                   Tom Daly, Chair


          AB 2503  
          (Obernolte) - As Amended April 19, 2016


          SUBJECT:  Workers' compensation:  utilization review


          SUMMARY:  Provides that, when an injured worker is referred to a  
          particular physician for treatment in the workers' compensation  
          system, any request for authorization of treatment submitted by  
          that physician shall be sent to the claims administrator for the  
          insurer or employer that referred the injured worker to that  
          physician.


          EXISTING LAW:  


          1)Provides for a comprehensive system of employer-paid benefits  
            for employees who suffer injuries or conditions that arise out  
            of or occur in the course of employment, including medical  
            treatment to cure or relieve the injury or condition.


          2)Requires each employer to establish, and file with the  
            Administrative Director (AD) of the Division of Workers'  
            Compensation (DWC) a utilization review (UR) process to be the  
            mechanism for evaluation of recommended treatment.










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          3)Requires the UR procedure to have written policies and  
            procedures that ensure decisions on medical necessity are  
            based on the appropriate treatment guidelines, as provided by  
            law.


          4)Specifies that only a qualified physician competent to  
            evaluate the specific clinical issues associated with a  
            treatment request may delay, modify, or deny a requested  
            treatment.


          5)Provides for a standardized request for authorization (RFA)  
            form to be used by physicians when requesting treatment to be  
            authorized.


          6)Requires UR organizations to respond to RFAs within specified  
            time frames, which vary depending on the urgency of the  
            requested treatment.


          FISCAL EFFECT:  Undetermined.


          COMMENTS:  


           1)Purpose  .  According to the author, it is often difficult for  
            health care providers in the workers' compensation system to  
            obtain timely approval for treatment of injured workers  
            because it is difficult to know where to send RFAs.  Whether  
            it is intentionally complex systems, or bureaucratic  
            inefficiency, physicians report that upon sending RFAs to what  
            appears to be the correct recipient, they are frequently  
            advised that the RFA and attendant medical materials must be  
            sent elsewhere.  Further, the timeframes within which  
            responses from the UR entity must be provided do not begin to  
            run until the RFA is sent to the "correct" location.  The bill  








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            is intended to clarify where the RFA and related materials  
            must be sent, so that the time frames specified in statute  
            will be more effective.


           2)Support  .  According to the bill's sponsors, the California  
            Orthopaedic Association, the bill will reduce confusion in the  
            system, resulting in better communication, lower costs for  
            everyone, and more timely care for injured workers.


          REGISTERED SUPPORT / OPPOSITION:




          Support


          California Orthopaedic Association


          Peace Officers Research Association of California (PORAC)




          Opposition


          None received




          Analysis Prepared by:Mark Rakich / INS. / (916) 319-2086











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