BILL ANALYSIS Ó
AB 2883
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Date of Hearing: April 6, 2016
ASSEMBLY COMMITTEE ON INSURANCE
Tom Daly, Chair
AB 2883
(Committee on Insurance) - As Amended March 29, 2016
SUBJECT: Workers' compensation: utilization review
SUMMARY: Directs the Commission on Health and Safety and
Workers' Compensation (CHSWC) to conduct a study on the
viability of establishing a paperless system for approval of
treatment requests in the workers' compensation system, and
deletes a duplicative Labor Code Section.
EXISTING LAW:
1)Establishes the CHSWC as a policy research entity within the
Department of Industrial Relations. Commission members are
appointed by the Governor, and there are an equal number of
labor and employer representatives.
2)Contains two nearly identical Labor Code Sections numbered
6354.7 that establish a Workers' Occupational Safety and
Health Education Fund, delineates the purposes of the Fund,
and provides that the funds may be expended by the CHSWC.
FISCAL EFFECT: Undetermined
AB 2883
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COMMENTS:
1)Paperless approvals . One of the points of frustration
frequently cited by physicians with the workers' compensation
system is the delays associated with obtaining approval for
recommended treatment. While there may be other approaches
that raise more complex policy debates, administrative
streamlining is policy neutral. However, logistics and
workability for a diverse provider base may pose challenges
that need to be considered in moving toward a paperless, more
efficient system for obtaining approval of treatment. The
CHSWC is the appropriate entity to conduct this study.
2)Repeal of Labor Code Section 6354.7 . Legislative Counsel
engages annually in a "Code clean-up" review, and recently
noted that there are two Sections with the same number that
are virtually identical. Both were adopted in 2002 in
separate bills by the same author. One bill was apparently
aimed at workers' compensation administration, and the other
aimed at benefits, but this provision managed to appear in
both bills.
3)Vehicle for consensus clean-up . As is the custom of the
Insurance Committee, this bill will be a potential vehicle for
non-controversial, consensus items in the event all relevant
stakeholders agree on issues.
REGISTERED SUPPORT / OPPOSITION:
Support
AB 2883
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None received
Opposition
None received
Analysis Prepared by:Mark Rakich / INS. / (916) 319-2086