Assigned to FIN FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
FACT SHEET FOR S.B. 1551
workers' compensation; disability; definitions
Purpose
Modifies the requirements for the Industrial Commission of Arizona (ICA) to set a
physician's schedule of fees for employee injuries under workers' compensation. Increases the
monthly dependent allowance provided to an employee in addition to compensation for a
temporary total disability.
Background
The ICA is the state regulatory agency responsible for processing and adjudicating a
workers' compensation claim. Employees may receive workers’ compensation benefits, including
medical treatment and lost wages, as a result of injuries or death caused by an accident arising out
of and in the course of employment (A.R.S. Title 23, Chapter 6). Every employer and physician
who attends an injured employee of that employer must file a full and complete report of every
known injury to the employee arising out of or in the course of employment and resulting in the
loss of life or injury with the ICA and the employer's insurance carrier from time to time. The ICA
must fix a schedule of fees to be charged by physicians, physical therapists or occupational
therapists attending injured employees and for prescriptions required to treat an injured employee.
The ICA must annually review the schedule of fees (A.R.S. § 23-908).
Temporary total disability is compensation paid to an employee who is temporarily unable
to work in any capacity. During the period of temporary total disability, the injured employees
receive 66.667 percent of their average monthly wage. An employee with dependents will receive
an additional allowance of $25 per month. The additional allowance is not on a per capita number
of dependents but must reflect a total monthly benefit increase of exactly $25 (A.R.S. § 23-1045).
Statute defines interested party, regarding a workers' compensation claim, as the employer,
the employee, or if the employee is deceased, the employee's estate, the surviving spouse or
dependents, the ICA, the insurance carrier or their representative.
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Requires the ICA to fix a schedule of fees for workers' compensation to be charged for medical
care, dental care and supplies that are received by injured employees, rather than charged by
physicians, physical therapists or occupational therapists attending injured employees.
2. Exempts contracts that are necessary to develop and publish a schedule of fees related to dental
care from the requirements of the State Procurement Code. FACT SHEET
S.B. 1551
Page 2
3. Requires the ICA to publish on its publicly available website the schedule of fees.
4. States that the ICA is not required to publish the schedule of fees in the Arizona Administrative
Register.
5. Increases, from $25 to $100, the monthly dependent allowance provided to an employee in
addition to compensation for a temporary total disability.
6. Includes, in the definition of interested party, a third party administrator if the employee is
deceased.
7. Makes technical and conforming changes.
8. Becomes effective on the general effective date.
Prepared by Senate Research
February 12, 2025
JT/ci