BILL ANALYSIS Ó SB 542 Page 1 Date of Hearing: August 19, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair SB 542 (Mendoza) - As Amended June 23, 2015 ----------------------------------------------------------------- |Policy |Insurance |Vote:|13 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill makes several technical, clarifying, or noncontroversial changes to the workers' compensation laws, including the following: SB 542 Page 2 1)Authorizes the Division of Workers' Compensation (DWC) to use additional materials upon which to base a home healthcare fee schedule. 2)Clarifies medical provider network (MPN), not an employers, is responsible for providing certain disclosures to workers. 3)Clarifies and defines terms related to MPNs. 4)Other minor, non-controversial changes. FISCAL EFFECT: Negligible state fiscal impact. COMMENTS: 1)Purpose. According to the author, this bill is intended to clarify and define a number of minor issues in the workers' compensation system, all of which are consensus proposals among workers' compensation stakeholders. The most substantive provision addresses the scope of the DWC's authority to adopt the home health care fee schedule, by authorizing reliance on the recommendation of a recent RAND report. 2)Home Health Care. One of the numerous issues delegated to the DWC in 2012 by SB 863 (De Leon), Chapter 363, was the obligation to adopt a fee schedule for home health services. At that time, the DWC was directed to follow the approach used SB 542 Page 3 in the IHSS program. However, a subsequent RAND report recommended that other state and federal programs should be used as guidance to the DWC on this schedule, and the bill conforms the statute to the RAND recommendations. Analysis Prepared by:Lisa Murawski / APPR. / (916) 319-2081