103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4079 Introduced , by Rep. Dan Ugaste SYNOPSIS AS INTRODUCED: 820 ILCS 305/8.2 Amends the Workers' Compensation Act. Provides that the Illinois Workers' Compensation Commission shall establish new medical fee schedules applicable on and after September 1, 2024 in accordance with specified criteria. Makes existing medical fee schedules inoperative after August 31, 2024. Provides that a provider may prescribe a one-time 7-day supply unless a prescription for more than 7 days is preauthorized by the employer. Provides for non-hospital fee schedules and hospital fee schedules applicable to different geographic areas of the State. Sets forth a procedure for petitioning the Commission if a maximum fee causes a significant limitation on access to quality health care in either a specific field of health care services or a specific geographic limitation on access to health care. Provides that by September 1, 2023, the Commission, in consultation with the Workers' Compensation Medical Fee Advisory Board, shall adopt by rule an evidence-based drug formulary and any rules necessary for its administration. Provides that prescriptions prescribed for workers' compensation cases shall be limited to the prescription drugs and doses on the closed formulary. Provides that a custom compound medication for longer than the one-time 7-day supply shall be approved for payment only if the compound meets specified standards. Provides for charges for custom compound medications. Effective immediately. LRB103 32159 SPS 61248 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4079 Introduced , by Rep. Dan Ugaste SYNOPSIS AS INTRODUCED: 820 ILCS 305/8.2 820 ILCS 305/8.2 Amends the Workers' Compensation Act. Provides that the Illinois Workers' Compensation Commission shall establish new medical fee schedules applicable on and after September 1, 2024 in accordance with specified criteria. Makes existing medical fee schedules inoperative after August 31, 2024. Provides that a provider may prescribe a one-time 7-day supply unless a prescription for more than 7 days is preauthorized by the employer. Provides for non-hospital fee schedules and hospital fee schedules applicable to different geographic areas of the State. Sets forth a procedure for petitioning the Commission if a maximum fee causes a significant limitation on access to quality health care in either a specific field of health care services or a specific geographic limitation on access to health care. Provides that by September 1, 2023, the Commission, in consultation with the Workers' Compensation Medical Fee Advisory Board, shall adopt by rule an evidence-based drug formulary and any rules necessary for its administration. Provides that prescriptions prescribed for workers' compensation cases shall be limited to the prescription drugs and doses on the closed formulary. Provides that a custom compound medication for longer than the one-time 7-day supply shall be approved for payment only if the compound meets specified standards. Provides for charges for custom compound medications. Effective immediately. LRB103 32159 SPS 61248 b LRB103 32159 SPS 61248 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4079 Introduced , by Rep. Dan Ugaste SYNOPSIS AS INTRODUCED: 820 ILCS 305/8.2 820 ILCS 305/8.2 820 ILCS 305/8.2 Amends the Workers' Compensation Act. Provides that the Illinois Workers' Compensation Commission shall establish new medical fee schedules applicable on and after September 1, 2024 in accordance with specified criteria. Makes existing medical fee schedules inoperative after August 31, 2024. Provides that a provider may prescribe a one-time 7-day supply unless a prescription for more than 7 days is preauthorized by the employer. Provides for non-hospital fee schedules and hospital fee schedules applicable to different geographic areas of the State. Sets forth a procedure for petitioning the Commission if a maximum fee causes a significant limitation on access to quality health care in either a specific field of health care services or a specific geographic limitation on access to health care. Provides that by September 1, 2023, the Commission, in consultation with the Workers' Compensation Medical Fee Advisory Board, shall adopt by rule an evidence-based drug formulary and any rules necessary for its administration. Provides that prescriptions prescribed for workers' compensation cases shall be limited to the prescription drugs and doses on the closed formulary. Provides that a custom compound medication for longer than the one-time 7-day supply shall be approved for payment only if the compound meets specified standards. Provides for charges for custom compound medications. Effective immediately. LRB103 32159 SPS 61248 b LRB103 32159 SPS 61248 b LRB103 32159 SPS 61248 b A BILL FOR HB4079LRB103 32159 SPS 61248 b HB4079 LRB103 32159 SPS 61248 b HB4079 LRB103 32159 SPS 61248 b 1 AN ACT concerning employment. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Workers' Compensation Act is amended by 5 changing Section 8.2 as follows: 6 (820 ILCS 305/8.2) 7 Sec. 8.2. Fee schedule. 8 (a) Except as provided for in subsection (c), for 9 procedures, treatments, or services covered under this Act and 10 rendered or to be rendered on and after February 1, 2006, the 11 maximum allowable payment shall be 90% of the 80th percentile 12 of charges and fees as determined by the Commission utilizing 13 information provided by employers' and insurers' national 14 databases, with a minimum of 12,000,000 Illinois line item 15 charges and fees comprised of health care provider and 16 hospital charges and fees as of August 1, 2004 but not earlier 17 than August 1, 2002. These charges and fees are provider 18 billed amounts and shall not include discounted charges. The 19 80th percentile is the point on an ordered data set from low to 20 high such that 80% of the cases are below or equal to that 21 point and at most 20% are above or equal to that point. The 22 Commission shall adjust these historical charges and fees as 23 of August 1, 2004 by the Consumer Price Index-U for the period 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4079 Introduced , by Rep. Dan Ugaste SYNOPSIS AS INTRODUCED: 820 ILCS 305/8.2 820 ILCS 305/8.2 820 ILCS 305/8.2 Amends the Workers' Compensation Act. Provides that the Illinois Workers' Compensation Commission shall establish new medical fee schedules applicable on and after September 1, 2024 in accordance with specified criteria. Makes existing medical fee schedules inoperative after August 31, 2024. Provides that a provider may prescribe a one-time 7-day supply unless a prescription for more than 7 days is preauthorized by the employer. Provides for non-hospital fee schedules and hospital fee schedules applicable to different geographic areas of the State. Sets forth a procedure for petitioning the Commission if a maximum fee causes a significant limitation on access to quality health care in either a specific field of health care services or a specific geographic limitation on access to health care. Provides that by September 1, 2023, the Commission, in consultation with the Workers' Compensation Medical Fee Advisory Board, shall adopt by rule an evidence-based drug formulary and any rules necessary for its administration. Provides that prescriptions prescribed for workers' compensation cases shall be limited to the prescription drugs and doses on the closed formulary. Provides that a custom compound medication for longer than the one-time 7-day supply shall be approved for payment only if the compound meets specified standards. Provides for charges for custom compound medications. Effective immediately. LRB103 32159 SPS 61248 b LRB103 32159 SPS 61248 b LRB103 32159 SPS 61248 b A BILL FOR 820 ILCS 305/8.2 LRB103 32159 SPS 61248 b HB4079 LRB103 32159 SPS 61248 b HB4079- 2 -LRB103 32159 SPS 61248 b HB4079 - 2 - LRB103 32159 SPS 61248 b HB4079 - 2 - LRB103 32159 SPS 61248 b 1 August 1, 2004 through September 30, 2005. The Commission 2 shall establish fee schedules for procedures, treatments, or 3 services for hospital inpatient, hospital outpatient, 4 emergency room and trauma, ambulatory surgical treatment 5 centers, and professional services. These charges and fees 6 shall be designated by geozip or any smaller geographic unit. 7 The data shall in no way identify or tend to identify any 8 patient, employer, or health care provider. As used in this 9 Section, "geozip" means a three-digit zip code based on data 10 similarities, geographical similarities, and frequencies. A 11 geozip does not cross state boundaries. As used in this 12 Section, "three-digit zip code" means a geographic area in 13 which all zip codes have the same first 3 digits. If a geozip 14 does not have the necessary number of charges and fees to 15 calculate a valid percentile for a specific procedure, 16 treatment, or service, the Commission may combine data from 17 the geozip with up to 4 other geozips that are demographically 18 and economically similar and exhibit similarities in data and 19 frequencies until the Commission reaches 9 charges or fees for 20 that specific procedure, treatment, or service. In cases where 21 the compiled data contains less than 9 charges or fees for a 22 procedure, treatment, or service, reimbursement shall occur at 23 76% of charges and fees as determined by the Commission in a 24 manner consistent with the provisions of this paragraph. 25 Providers of out-of-state procedures, treatments, services, 26 products, or supplies shall be reimbursed at the lesser of HB4079 - 2 - LRB103 32159 SPS 61248 b HB4079- 3 -LRB103 32159 SPS 61248 b HB4079 - 3 - LRB103 32159 SPS 61248 b HB4079 - 3 - LRB103 32159 SPS 61248 b 1 that state's fee schedule amount or the fee schedule amount 2 for the region in which the employee resides. If no fee 3 schedule exists in that state, the provider shall be 4 reimbursed at the lesser of the actual charge or the fee 5 schedule amount for the region in which the employee resides. 6 Not later than September 30 in 2006 and each year thereafter, 7 the Commission shall automatically increase or decrease the 8 maximum allowable payment for a procedure, treatment, or 9 service established and in effect on January 1 of that year by 10 the percentage change in the Consumer Price Index-U for the 12 11 month period ending August 31 of that year. The increase or 12 decrease shall become effective on January 1 of the following 13 year. As used in this Section, "Consumer Price Index-U" means 14 the index published by the Bureau of Labor Statistics of the 15 U.S. Department of Labor, that measures the average change in 16 prices of all goods and services purchased by all urban 17 consumers, U.S. city average, all items, 1982-84=100. 18 (a-1) Notwithstanding the provisions of subsection (a) and 19 unless otherwise indicated, the following provisions shall 20 apply to the medical fee schedule starting on September 1, 21 2011: 22 (1) The Commission shall establish and maintain fee 23 schedules for procedures, treatments, products, services, 24 or supplies for hospital inpatient, hospital outpatient, 25 emergency room, ambulatory surgical treatment centers, 26 accredited ambulatory surgical treatment facilities, HB4079 - 3 - LRB103 32159 SPS 61248 b HB4079- 4 -LRB103 32159 SPS 61248 b HB4079 - 4 - LRB103 32159 SPS 61248 b HB4079 - 4 - LRB103 32159 SPS 61248 b 1 prescriptions filled and dispensed outside of a licensed 2 pharmacy, dental services, and professional services. This 3 fee schedule shall be based on the fee schedule amounts 4 already established by the Commission pursuant to 5 subsection (a) of this Section. However, starting on 6 January 1, 2012, these fee schedule amounts shall be 7 grouped into geographic regions in the following manner: 8 (A) Four regions for non-hospital fee schedule 9 amounts shall be utilized: 10 (i) Cook County; 11 (ii) DuPage, Kane, Lake, and Will Counties; 12 (iii) Bond, Calhoun, Clinton, Jersey, 13 Macoupin, Madison, Monroe, Montgomery, Randolph, 14 St. Clair, and Washington Counties; and 15 (iv) All other counties of the State. 16 (B) Fourteen regions for hospital fee schedule 17 amounts shall be utilized: 18 (i) Cook, DuPage, Will, Kane, McHenry, DeKalb, 19 Kendall, and Grundy Counties; 20 (ii) Kankakee County; 21 (iii) Madison, St. Clair, Macoupin, Clinton, 22 Monroe, Jersey, Bond, and Calhoun Counties; 23 (iv) Winnebago and Boone Counties; 24 (v) Peoria, Tazewell, Woodford, Marshall, and 25 Stark Counties; 26 (vi) Champaign, Piatt, and Ford Counties; HB4079 - 4 - LRB103 32159 SPS 61248 b HB4079- 5 -LRB103 32159 SPS 61248 b HB4079 - 5 - LRB103 32159 SPS 61248 b HB4079 - 5 - LRB103 32159 SPS 61248 b 1 (vii) Rock Island, Henry, and Mercer Counties; 2 (viii) Sangamon and Menard Counties; 3 (ix) McLean County; 4 (x) Lake County; 5 (xi) Macon County; 6 (xii) Vermilion County; 7 (xiii) Alexander County; and 8 (xiv) All other counties of the State. 9 (2) If a geozip, as defined in subsection (a) of this 10 Section, overlaps into one or more of the regions set 11 forth in this Section, then the Commission shall average 12 or repeat the charges and fees in a geozip in order to 13 designate charges and fees for each region. 14 (3) In cases where the compiled data contains less 15 than 9 charges or fees for a procedure, treatment, 16 product, supply, or service or where the fee schedule 17 amount cannot be determined by the non-discounted charge 18 data, non-Medicare relative values and conversion factors 19 derived from established fee schedule amounts, coding 20 crosswalks, or other data as determined by the Commission, 21 reimbursement shall occur at 76% of charges and fees until 22 September 1, 2011 and 53.2% of charges and fees thereafter 23 as determined by the Commission in a manner consistent 24 with the provisions of this paragraph. 25 (4) To establish additional fee schedule amounts, the 26 Commission shall utilize provider non-discounted charge HB4079 - 5 - LRB103 32159 SPS 61248 b HB4079- 6 -LRB103 32159 SPS 61248 b HB4079 - 6 - LRB103 32159 SPS 61248 b HB4079 - 6 - LRB103 32159 SPS 61248 b 1 data, non-Medicare relative values and conversion factors 2 derived from established fee schedule amounts, and coding 3 crosswalks. The Commission may establish additional fee 4 schedule amounts based on either the charge or cost of the 5 procedure, treatment, product, supply, or service. 6 (5) Implants shall be reimbursed at 25% above the net 7 manufacturer's invoice price less rebates, plus actual 8 reasonable and customary shipping charges whether or not 9 the implant charge is submitted by a provider in 10 conjunction with a bill for all other services associated 11 with the implant, submitted by a provider on a separate 12 claim form, submitted by a distributor, or submitted by 13 the manufacturer of the implant. "Implants" include the 14 following codes or any substantially similar updated code 15 as determined by the Commission: 0274 16 (prosthetics/orthotics); 0275 (pacemaker); 0276 (lens 17 implant); 0278 (implants); 0540 and 0545 (ambulance); 0624 18 (investigational devices); and 0636 (drugs requiring 19 detailed coding). Non-implantable devices or supplies 20 within these codes shall be reimbursed at 65% of actual 21 charge, which is the provider's normal rates under its 22 standard chargemaster. A standard chargemaster is the 23 provider's list of charges for procedures, treatments, 24 products, supplies, or services used to bill payers in a 25 consistent manner. 26 (6) The Commission shall automatically update all HB4079 - 6 - LRB103 32159 SPS 61248 b HB4079- 7 -LRB103 32159 SPS 61248 b HB4079 - 7 - LRB103 32159 SPS 61248 b HB4079 - 7 - LRB103 32159 SPS 61248 b 1 codes and associated rules with the version of the codes 2 and rules valid on January 1 of that year. 3 (a-1.5) The following provisions apply to procedures, 4 treatments, services, products, and supplies covered under 5 this Act and rendered or to be rendered on or after September 6 1, 2024: 7 (1) In this Section: 8 "CPT code" means each Current Procedural 9 Terminology code, for each geographic region specified 10 in subsection (b) of this Section, included on the 11 most recent medical fee schedule established by the 12 Commission pursuant to this Section. 13 "DRG code" means each current diagnosis related 14 group code, for each geographic region specified in 15 subsection (b) of this Section, included on the most 16 recent medical fee schedule established by the 17 Commission pursuant to this Section. 18 "Geozip" means a three-digit zip code based on 19 data similarities, geographical similarities, and 20 frequencies. 21 "Health care services" means those CPT and DRG 22 codes for procedures, treatments, products, services, 23 or supplies for hospital inpatient, hospital 24 outpatient, emergency room, ambulatory surgical 25 treatment centers, accredited ambulatory surgical 26 treatment facilities, and professional services. HB4079 - 7 - LRB103 32159 SPS 61248 b HB4079- 8 -LRB103 32159 SPS 61248 b HB4079 - 8 - LRB103 32159 SPS 61248 b HB4079 - 8 - LRB103 32159 SPS 61248 b 1 "Health care services" does not include codes 2 classified as healthcare common procedure coding 3 systems or dental. 4 "Medicare maximum fee" means, for each CPT and DRG 5 code, the current maximum fee for that CPT or DRG code 6 allowed to be charged by the Centers for Medicare and 7 Medicaid Services for Medicare patients in that 8 geographic region. The Medicare maximum fee shall be 9 the greater of (i) the current maximum fee allowed to 10 be charged by the Centers for Medicare and Medicaid 11 Services for Medicare patients in the geographic 12 region or (ii) the maximum fee charged by the Centers 13 for Medicare and Medicaid Services for Medicare 14 patients in the geographic region on January 1, 2024. 15 "Medicare percentage amount" means, for each CPT 16 and DRG code, the workers' compensation maximum fee as 17 a percentage of the Medicare maximum fee. 18 "Workers' compensation maximum fee" means, for 19 each CPT and DRG code, the current maximum fee allowed 20 to be charged under the medical fee schedule 21 established by the Commission for that CPT or DRG code 22 in that geographic region. 23 (2) The Commission shall establish and maintain fee 24 schedules for procedures, treatments, products, services, 25 or supplies for hospital inpatient, hospital outpatient, 26 emergency room, ambulatory surgical treatment centers, HB4079 - 8 - LRB103 32159 SPS 61248 b HB4079- 9 -LRB103 32159 SPS 61248 b HB4079 - 9 - LRB103 32159 SPS 61248 b HB4079 - 9 - LRB103 32159 SPS 61248 b 1 accredited ambulatory surgical treatment facilities, 2 prescriptions filled and dispensed outside of a licensed 3 pharmacy, dental services, and professional services. 4 These fee schedule amounts shall be grouped into 5 geographic regions in the following manner: 6 (A) Four regions for non-hospital fee schedule 7 amounts shall be utilized: 8 (i) Cook County; 9 (ii) DuPage, Kane, Lake, and Will Counties; 10 (iii) Bond, Calhoun, Clinton, Jersey, 11 Macoupin, Madison, Monroe, Montgomery, Randolph, 12 St. Clair, and Washington Counties; and 13 (iv) all other counties of the State. 14 (B) Fourteen regions for hospital fee schedule 15 amounts shall be utilized: 16 (i) Cook, DuPage, Will, Kane, McHenry, DeKalb, 17 Kendall, and Grundy Counties; 18 (ii) Kankakee County; 19 (iii) Madison, St. Clair, Macoupin, Clinton, 20 Monroe, Jersey, Bond, and Calhoun Counties; 21 (iv) Winnebago and Boone Counties; 22 (v) Peoria, Tazewell, Woodford, Marshall, and 23 Stark Counties; 24 (vi) Champaign, Piatt, and Ford Counties; 25 (vii) Rock Island, Henry, and Mercer Counties; 26 (viii) Sangamon and Menard Counties; HB4079 - 9 - LRB103 32159 SPS 61248 b HB4079- 10 -LRB103 32159 SPS 61248 b HB4079 - 10 - LRB103 32159 SPS 61248 b HB4079 - 10 - LRB103 32159 SPS 61248 b 1 (ix) McLean County; 2 (x) Lake County; 3 (xi) Macon County; 4 (xii) Vermilion County; 5 (xiii) Alexander County; and 6 (xiv) all other counties of the State. 7 If a geozip overlaps into one or more of the 8 regions set forth in this subsection, then the 9 Commission shall average or repeat the charges and 10 fees in a geozip in order to designate charges and fees 11 for each region. 12 (3) The initial workers' compensation maximum fee for 13 each CPT and DRG code as of September 1, 2024 shall be 14 determined as follows: 15 (A) Within 45 days after the effective date of 16 this amendatory Act of the 103rd General Assembly, the 17 Commission shall determine the Medicare percentage 18 amount for each CPT and DRG code using the most recent 19 data available. 20 CPT or DRG codes which have a value, but are not 21 covered expenses under Medicare, are still compensable 22 under the medical fee schedule according to the rate 23 described in subparagraph (B). 24 (B) Within 30 days after the Commission makes the 25 determinations required under subparagraph (A), the 26 Commission shall determine an adjustment to be made to HB4079 - 10 - LRB103 32159 SPS 61248 b HB4079- 11 -LRB103 32159 SPS 61248 b HB4079 - 11 - LRB103 32159 SPS 61248 b HB4079 - 11 - LRB103 32159 SPS 61248 b 1 the workers' compensation maximum fee for each CPT and 2 DRG code as follows: 3 (i) if the Medicare percentage amount for that 4 CPT or DRG code is equal to or less than 125%, then 5 the workers' compensation maximum fee for that CPT 6 or DRG code shall be adjusted so that it equals 7 125% of the most recent Medicare maximum fee for 8 that CPT or DRG code; 9 (ii) if the Medicare percentage amount for 10 that CPT or DRG code is greater than 125% but less 11 than 150%, then the workers' compensation maximum 12 fee for that CPT or DRG code shall not be adjusted; 13 (iii) if the Medicare percentage amount for 14 that CPT or DRG code is greater than 150% but less 15 than or equal to 225%, then the workers' 16 compensation maximum fee for that CPT or DRG code 17 shall be adjusted so that it equals the greater of 18 (I) 150% of the most recent Medicare maximum fee 19 for that CPT or DRG code or (II) 85% of the most 20 recent workers' compensation maximum amount for 21 that CPT or DRG code; 22 (iv) if the Medicare percentage amount for 23 that CPT or DRG code is greater than 225% but less 24 than or equal to 428.57%, then the workers' 25 compensation maximum fee for that CPT or DRG code 26 shall be adjusted so that it equals the greater of HB4079 - 11 - LRB103 32159 SPS 61248 b HB4079- 12 -LRB103 32159 SPS 61248 b HB4079 - 12 - LRB103 32159 SPS 61248 b HB4079 - 12 - LRB103 32159 SPS 61248 b 1 (I) 191.25% of the most recent Medicare maximum 2 fee for that CPT or DRG code or (II) 70% of the 3 most recent workers' compensation maximum amount 4 for that CPT or DRG code; or 5 (v) if the Medicare percentage amount for that 6 CPT or DRG code is greater than 428.57%, then the 7 workers' compensation maximum fee for that CPT or 8 DRG code shall be adjusted so that it equals 300% 9 of the most recent Medicare maximum fee for that 10 CPT or DRG code. 11 The Commission shall promptly publish on its 12 website the adjustments determined pursuant to this 13 subparagraph (B). 14 (C) The initial workers' compensation maximum fee 15 for each CPT and DRG code as of September 1, 2024 shall 16 be equal to the workers' compensation maximum fee for 17 that code as determined and adjusted pursuant to 18 subparagraph (B), subject to any further adjustments 19 under paragraph (5) of this subsection. 20 (4) The Commission, as of September 1, 2025 and 21 September 1 of each year thereafter, shall adjust the 22 workers' compensation maximum fee for each CPT or DRG code 23 to exactly half of the most recent annual increase in the 24 Consumer Price Index-U. 25 (5) A person who believes that the workers' 26 compensation maximum fee for a CPT or DRG code, as HB4079 - 12 - LRB103 32159 SPS 61248 b HB4079- 13 -LRB103 32159 SPS 61248 b HB4079 - 13 - LRB103 32159 SPS 61248 b HB4079 - 13 - LRB103 32159 SPS 61248 b 1 otherwise determined pursuant to this subsection, creates 2 or would create upon implementation a significant 3 limitation on access to quality health care in either a 4 specific field of health care services or a specific 5 geographic limitation on access to health care may 6 petition the Commission to modify the workers' 7 compensation maximum fee for that CPT or DRG code so as to 8 not create that significant limitation. 9 The petitioner bears the burden of demonstrating, by a 10 preponderance of the credible evidence, that the workers' 11 compensation maximum fee that would otherwise apply would 12 create a significant limitation on access to quality 13 health care in either a specific field of health care 14 services or a specific geographic limitation on access to 15 health care. Petitions shall be made publicly available. 16 Such credible evidence shall include empirical data 17 demonstrating a significant limitation on access to 18 quality health care. Other interested persons may file 19 comments or responses to a petition within 30 days after 20 the filing of a petition. 21 The Commission shall take final action on each 22 petition within 180 days after filing. The Commission may, 23 but is not required to, seek the recommendation of the 24 Medical Fee Advisory Board to assist with this 25 determination. If the Commission grants the petition, the 26 Commission shall further increase the workers' HB4079 - 13 - LRB103 32159 SPS 61248 b HB4079- 14 -LRB103 32159 SPS 61248 b HB4079 - 14 - LRB103 32159 SPS 61248 b HB4079 - 14 - LRB103 32159 SPS 61248 b 1 compensation maximum fee for that CPT or DRG code by the 2 amount minimally necessary to avoid creating a significant 3 limitation on access to quality health care in either a 4 specific field of health care services or a specific 5 geographic limitation on access to health care. The 6 increased workers' compensation maximum fee shall take 7 effect upon entry of the Commission's final action. 8 (a-2) For procedures, treatments, services, or supplies 9 covered under this Act and rendered or to be rendered on or 10 after September 1, 2011, the maximum allowable payment shall 11 be 70% of the fee schedule amounts, which shall be adjusted 12 yearly by the Consumer Price Index-U, as described in 13 subsection (a) of this Section. 14 (a-2.5) Subsections (a), (a-1), and (a-2) are inoperative 15 on and after August 31, 2024. 16 (a-3) Prescriptions filled and dispensed outside of a 17 licensed pharmacy shall be subject to a fee schedule that 18 shall not exceed the Average Wholesale Price (AWP) plus a 19 dispensing fee of $4.18. AWP or its equivalent as registered 20 by the National Drug Code shall be set forth for that drug on 21 that date as published in Medi-Span Medispan. 22 (a-3.5) By September 1, 2023, the Commission, in 23 consultation with the Workers' Compensation Medical Fee 24 Advisory Board, shall adopt by rule an evidence-based drug 25 formulary and any rules necessary for its administration. 26 Prescriptions prescribed for workers' compensation cases shall HB4079 - 14 - LRB103 32159 SPS 61248 b HB4079- 15 -LRB103 32159 SPS 61248 b HB4079 - 15 - LRB103 32159 SPS 61248 b HB4079 - 15 - LRB103 32159 SPS 61248 b 1 be limited to the prescription drugs and doses on the closed 2 formulary. 3 A request for a prescription that is not on the closed 4 formulary shall be reviewed under Section 8.7. 5 (a-4) As used in this Section, "custom compound 6 medication" means a customized medication prescribed or 7 ordered by a duly licensed prescriber for a specific patient 8 that is prepared in a pharmacy by a licensed pharmacist in 9 response to a licensed prescriber's prescription or order by 10 combining, mixing, or altering of ingredients, but not 11 reconstituting, to meet the unique needs of a specific 12 patient. 13 (a-5) A custom compound medication for longer than the 14 one-time 7-day supply described in subsection (a-6) shall be 15 approved for payment only if the compound meets all of the 16 following standards: 17 (1) there is no readily available commercially 18 manufactured equivalent product; 19 (2) no other Food and Drug Administration-approved 20 alternative drug is appropriate for the patient; 21 (3) the active ingredients of the compound each have a 22 National Drug Code number, are components of drugs 23 approved by the Food and Drug Administration, and the 24 active ingredients in the custom compound medication are 25 being used for diagnosis or conditions approved use by the 26 Food and Drug Administration and not being used for HB4079 - 15 - LRB103 32159 SPS 61248 b HB4079- 16 -LRB103 32159 SPS 61248 b HB4079 - 16 - LRB103 32159 SPS 61248 b HB4079 - 16 - LRB103 32159 SPS 61248 b 1 off-label use; 2 (4) the drug has not been withdrawn or removed from 3 the market for safety reasons; and 4 (5) the prescriber is able to demonstrate to the payer 5 that the compound medication is clinically appropriate for 6 the intended use. 7 (a-6) Custom compound medications shall be charged using 8 the specific amount of each component drug and its original 9 manufacturer's National Drug Code number included in the 10 compound. Charges shall be based on a maximum charge of the 11 average wholesale price based upon the original manufacturer's 12 National Drug Code number, as published by Red Book or 13 Medi-Span and prorated for each component amount used. If the 14 National Drug Code for the compound ingredient is a repackaged 15 drug, the maximum allowable fee for the repackaged drug shall 16 be determined by the National Drug Code and the average 17 wholesale price of the underlying original manufacturer. 18 Components without National Drug Code numbers shall not be 19 charged. A single dispensing fee for a custom compound 20 medication as determined by the Commission based on the actual 21 costs of preparing and dispensing the custom compound 22 medication shall be paid. The dispensing fee for a compound 23 prescription shall be billed with code WC 700-C. The provider 24 may prescribe a one-time 7-day supply. Any custom compound 25 medication prescriptions for more than 7 days shall be 26 preauthorized by the employer. Under all circumstances, if the HB4079 - 16 - LRB103 32159 SPS 61248 b HB4079- 17 -LRB103 32159 SPS 61248 b HB4079 - 17 - LRB103 32159 SPS 61248 b HB4079 - 17 - LRB103 32159 SPS 61248 b 1 compound medication meets the requirements in subsection 2 (a-5), a 7-day supply shall be covered. 3 (a-7) This Section is subject to the other provisions of 4 this Act, including, but not limited to, Section 8.7. 5 (b) Notwithstanding the provisions of subsection (a), if 6 the Commission finds that there is a significant limitation on 7 access to quality health care in either a specific field of 8 health care services or a specific geographic limitation on 9 access to health care, it may change the Consumer Price 10 Index-U increase or decrease for that specific field or 11 specific geographic limitation on access to health care to 12 address that limitation. 13 (c) The Commission shall establish by rule a process to 14 review those medical cases or outliers that involve 15 extra-ordinary treatment to determine whether to make an 16 additional adjustment to the maximum payment within a fee 17 schedule for a procedure, treatment, or service. 18 (d) When a patient notifies a provider that the treatment, 19 procedure, or service being sought is for a work-related 20 illness or injury and furnishes the provider the name and 21 address of the responsible employer, the provider shall bill 22 the employer or its designee directly. The employer or its 23 designee shall make payment for treatment in accordance with 24 the provisions of this Section directly to the provider, 25 except that, if a provider has designated a third-party 26 billing entity to bill on its behalf, payment shall be made HB4079 - 17 - LRB103 32159 SPS 61248 b HB4079- 18 -LRB103 32159 SPS 61248 b HB4079 - 18 - LRB103 32159 SPS 61248 b HB4079 - 18 - LRB103 32159 SPS 61248 b 1 directly to the billing entity. Providers shall submit bills 2 and records in accordance with the provisions of this Section. 3 (1) All payments to providers for treatment provided 4 pursuant to this Act shall be made within 30 days of 5 receipt of the bills as long as the bill contains 6 substantially all the required data elements necessary to 7 adjudicate the bill. 8 (2) If the bill does not contain substantially all the 9 required data elements necessary to adjudicate the bill, 10 or the claim is denied for any other reason, in whole or in 11 part, the employer or insurer shall provide written 12 notification to the provider in the form of an explanation 13 of benefits explaining the basis for the denial and 14 describing any additional necessary data elements within 15 30 days of receipt of the bill. The Commission, with 16 assistance from the Medical Fee Advisory Board, shall 17 adopt rules detailing the requirements for the explanation 18 of benefits required under this subsection. 19 (3) In the case (i) of nonpayment to a provider within 20 30 days of receipt of the bill which contained 21 substantially all of the required data elements necessary 22 to adjudicate the bill, (ii) of nonpayment to a provider 23 of a portion of such a bill, or (iii) where the provider 24 has not been issued an explanation of benefits for a bill, 25 the bill, or portion of the bill up to the lesser of the 26 actual charge or the payment level set by the Commission HB4079 - 18 - LRB103 32159 SPS 61248 b HB4079- 19 -LRB103 32159 SPS 61248 b HB4079 - 19 - LRB103 32159 SPS 61248 b HB4079 - 19 - LRB103 32159 SPS 61248 b 1 in the fee schedule established in this Section, shall 2 incur interest at a rate of 1% per month payable by the 3 employer to the provider. Any required interest payments 4 shall be made by the employer or its insurer to the 5 provider within 30 days after payment of the bill. 6 (4) If the employer or its insurer fails to pay 7 interest within 30 days after payment of the bill as 8 required pursuant to paragraph (3), the provider may bring 9 an action in circuit court for the sole purpose of seeking 10 payment of interest pursuant to paragraph (3) against the 11 employer or its insurer responsible for insuring the 12 employer's liability pursuant to item (3) of subsection 13 (a) of Section 4. The circuit court's jurisdiction shall 14 be limited to enforcing payment of interest pursuant to 15 paragraph (3). Interest under paragraph (3) is only 16 payable to the provider. An employee is not responsible 17 for the payment of interest under this Section. The right 18 to interest under paragraph (3) shall not delay, diminish, 19 restrict, or alter in any way the benefits to which the 20 employee or his or her dependents are entitled under this 21 Act. 22 The changes made to this subsection (d) by this amendatory 23 Act of the 100th General Assembly apply to procedures, 24 treatments, and services rendered on and after the effective 25 date of this amendatory Act of the 100th General Assembly. 26 (e) Except as provided in subsections (e-5), (e-10), and HB4079 - 19 - LRB103 32159 SPS 61248 b HB4079- 20 -LRB103 32159 SPS 61248 b HB4079 - 20 - LRB103 32159 SPS 61248 b HB4079 - 20 - LRB103 32159 SPS 61248 b 1 (e-15), a provider shall not hold an employee liable for costs 2 related to a non-disputed procedure, treatment, or service 3 rendered in connection with a compensable injury. The 4 provisions of subsections (e-5), (e-10), (e-15), and (e-20) 5 shall not apply if an employee provides information to the 6 provider regarding participation in a group health plan. If 7 the employee participates in a group health plan, the provider 8 may submit a claim for services to the group health plan. If 9 the claim for service is covered by the group health plan, the 10 employee's responsibility shall be limited to applicable 11 deductibles, co-payments, or co-insurance. Except as provided 12 under subsections (e-5), (e-10), (e-15), and (e-20), a 13 provider shall not bill or otherwise attempt to recover from 14 the employee the difference between the provider's charge and 15 the amount paid by the employer or the insurer on a compensable 16 injury, or for medical services or treatment determined by the 17 Commission to be excessive or unnecessary. 18 (e-5) If an employer notifies a provider that the employer 19 does not consider the illness or injury to be compensable 20 under this Act, the provider may seek payment of the 21 provider's actual charges from the employee for any procedure, 22 treatment, or service rendered. Once an employee informs the 23 provider that there is an application filed with the 24 Commission to resolve a dispute over payment of such charges, 25 the provider shall cease any and all efforts to collect 26 payment for the services that are the subject of the dispute. HB4079 - 20 - LRB103 32159 SPS 61248 b HB4079- 21 -LRB103 32159 SPS 61248 b HB4079 - 21 - LRB103 32159 SPS 61248 b HB4079 - 21 - LRB103 32159 SPS 61248 b 1 Any statute of limitations or statute of repose applicable to 2 the provider's efforts to collect payment from the employee 3 shall be tolled from the date that the employee files the 4 application with the Commission until the date that the 5 provider is permitted to resume collection efforts under the 6 provisions of this Section. 7 (e-10) If an employer notifies a provider that the 8 employer will pay only a portion of a bill for any procedure, 9 treatment, or service rendered in connection with a 10 compensable illness or disease, the provider may seek payment 11 from the employee for the remainder of the amount of the bill 12 up to the lesser of the actual charge, negotiated rate, if 13 applicable, or the payment level set by the Commission in the 14 fee schedule established in this Section. Once an employee 15 informs the provider that there is an application filed with 16 the Commission to resolve a dispute over payment of such 17 charges, the provider shall cease any and all efforts to 18 collect payment for the services that are the subject of the 19 dispute. Any statute of limitations or statute of repose 20 applicable to the provider's efforts to collect payment from 21 the employee shall be tolled from the date that the employee 22 files the application with the Commission until the date that 23 the provider is permitted to resume collection efforts under 24 the provisions of this Section. 25 (e-15) When there is a dispute over the compensability of 26 or amount of payment for a procedure, treatment, or service, HB4079 - 21 - LRB103 32159 SPS 61248 b HB4079- 22 -LRB103 32159 SPS 61248 b HB4079 - 22 - LRB103 32159 SPS 61248 b HB4079 - 22 - LRB103 32159 SPS 61248 b 1 and a case is pending or proceeding before an Arbitrator or the 2 Commission, the provider may mail the employee reminders that 3 the employee will be responsible for payment of any procedure, 4 treatment or service rendered by the provider. The reminders 5 must state that they are not bills, to the extent practicable 6 include itemized information, and state that the employee need 7 not pay until such time as the provider is permitted to resume 8 collection efforts under this Section. The reminders shall not 9 be provided to any credit rating agency. The reminders may 10 request that the employee furnish the provider with 11 information about the proceeding under this Act, such as the 12 file number, names of parties, and status of the case. If an 13 employee fails to respond to such request for information or 14 fails to furnish the information requested within 90 days of 15 the date of the reminder, the provider is entitled to resume 16 any and all efforts to collect payment from the employee for 17 the services rendered to the employee and the employee shall 18 be responsible for payment of any outstanding bills for a 19 procedure, treatment, or service rendered by a provider. 20 (e-20) Upon a final award or judgment by an Arbitrator or 21 the Commission, or a settlement agreed to by the employer and 22 the employee, a provider may resume any and all efforts to 23 collect payment from the employee for the services rendered to 24 the employee and the employee shall be responsible for payment 25 of any outstanding bills for a procedure, treatment, or 26 service rendered by a provider as well as the interest awarded HB4079 - 22 - LRB103 32159 SPS 61248 b HB4079- 23 -LRB103 32159 SPS 61248 b HB4079 - 23 - LRB103 32159 SPS 61248 b HB4079 - 23 - LRB103 32159 SPS 61248 b 1 under subsection (d) of this Section. In the case of a 2 procedure, treatment, or service deemed compensable, the 3 provider shall not require a payment rate, excluding the 4 interest provisions under subsection (d), greater than the 5 lesser of the actual charge or the payment level set by the 6 Commission in the fee schedule established in this Section. 7 Payment for services deemed not covered or not compensable 8 under this Act is the responsibility of the employee unless a 9 provider and employee have agreed otherwise in writing. 10 Services not covered or not compensable under this Act are not 11 subject to the fee schedule in this Section. 12 (f) Nothing in this Act shall prohibit an employer or 13 insurer from contracting with a health care provider or group 14 of health care providers for reimbursement levels for benefits 15 under this Act different from those provided in this Section. 16 (g) On or before January 1, 2010 the Commission shall 17 provide to the Governor and General Assembly a report 18 regarding the implementation of the medical fee schedule and 19 the index used for annual adjustment to that schedule as 20 described in this Section. 21 (Source: P.A. 100-1117, eff. 11-27-18; 100-1175, eff. 22 1-11-19.) 23 Section 99. Effective date. This Act takes effect upon 24 becoming law. HB4079 - 23 - LRB103 32159 SPS 61248 b