SLS 12RS-553 REENGROSSED Page 1 of 6 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Regular Session, 2012 SENATE BILL NO. 367 BY SENATOR RISER WORKERS' COMPENSATI ON. Provides for medical examinations in workers' compensation cases. (8/1/12) AN ACT1 To amend and reenact R.S. 23:1123, 1142(A) and (B)(1), 1203(E), 1307, and 1317.1(A),2 relative to workers' compensation; to provide relative to independent medical3 examinations; to provide that certain information be given to certain injured workers;4 to provide relative to utilization review companies; and to provide for related5 matters.6 Be it enacted by the Legislature of Louisiana:7 Section 1. R.S. 23:1123, 1142(A) and (B)(1), 1203(E), 1307, and 1317.1(A) are8 hereby amended and reenacted to read as follows: 9 §1123. Disputes as to condition or capacity to work, or current medical treatment10 of employee; examination under supervision of the director11 If any dispute arises as to the condition of the employee , or the employee's12 capacity to work, or the current medical treatment for the employee, the director,13 upon application of any party, shall order an examination of the employee to be14 made by a medical practitioner selected and appointed by the director. The medical15 examiner shall report his conclusions from the examination to the director and to the16 parties and such report shall be prima facie evidence of the facts therein stated in any17 SB NO. 367 SLS 12RS-553 REENGROSSED Page 2 of 6 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. subsequent proceedings under this Chapter.1 * * *2 §1142. Approval of health care providers; fees3 A. Definitions. For the purposes of this Section, the following terms shall4 have the following meanings unless the context clearly indicates otherwise:5 (1) "Payor" shall mean the entity responsible, whether by law or contract, for6 the payment of the medical expenses incurred by a claimant as a result of a work7 related injury.8 (2) "Utilization review company" shall mean the company or entity9 which contracts with the payor, and which entity reviews the claimant's medical10 records and information and makes the determination of medical necessity in11 accordance with this Chapter, for the purposes of assisting the payor with the12 authorization of the claimant's medical care, services and treatment requested13 pursuant to this Chapter.14 B. Nonemergency care. (1) (a) Except as provided herein, each health care15 provider may not incur more than a total of seven hundred fifty dollars in16 nonemergency diagnostic testing or treatment without the mutual consent of the17 payor and the employee as provided by regulation. Except as provided herein, that18 portion of the fees for nonemergency services of each health care provider in excess19 of seven hundred fifty dollars shall not be an enforceable obligation against the20 employee or the employer or the employer's workers' compensation insurer unless21 the employee and the payor have agreed upon the diagnostic testing or treatment by22 the health care provider.23 (b)(i) The payor may contract with a utilization review company to assist24 the payor in determining if the request for nonemergency diagnostic testing or25 treatment, in an amount which exceeds seven hundred fifty dollars, is a medical26 necessity as provided pursuant to this Chapter.27 (ii) A medical necessity determination by a utilization review company28 and the payor's consent to authorize the requested nonemergency diagnostic29 SB NO. 367 SLS 12RS-553 REENGROSSED Page 3 of 6 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. testing and treatment shall require only a review of the claimant's medical1 records and shall not require an examination of the employee.2 * * *3 §1203. Duty to furnish medical and vocational rehabilitation expenses; prosthetic4 devices; other expenses5 * * *6 E. Upon the first payment for a claimant's medical care, service, or7 treatment, the payor, as defined in R.S. 23:1142(A)(1), shall communicate to the8 claimant information, in plain language, regarding the procedure for requesting an9 independent medical examination in the event a dispute arises as to the condition of10 the employee or the employee's capacity to work, and the procedure for11 appealing the denial of medical treatment to the medical director as provided12 in R.S. 23:1203.1. A payor shall not deny medical care, service, or treatment to a13 claimant unless the payor can document a reasonable and diligent effort in14 communicating such information. A payor who denies medical care, service, or15 treatment without making such an effort may be fined an amount not to exceed five16 hundred dollars or the cost of the medical care, service, or treatment, whichever is17 more.18 * * *19 §1307. Information to injured employee20 Upon receipt of notice of injury from the employer or other indication of an21 injury reportable under R.S. 23:1306, the office shall mail immediately to the injured22 employee and employer a brochure which sets forth in clear understandable language23 a summary statement of the rights, benefits, and obligations of employers and24 employees under this Chapter, together with an explanation of the operations of the25 office, and shall invite the employer and employee to seek the advice of the office26 with reference to any question or dispute which the employee has concerning the27 injury. Such brochure shall specifically state the procedure for requesting an28 independent medical examination in the event a dispute arises as to the condition of29 SB NO. 367 SLS 12RS-553 REENGROSSED Page 4 of 6 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. the employee or the employee's capacity to work. If such brochure has previously1 been mailed to an employer within the calendar year, the office shall not mail such2 employer an additional brochure unless the employer specifically requests such.3 * * *4 §1317.1. Independent medical examinations5 A. Any party wishing to request an independent medical examination of the6 claimant pursuant to R.S. 23:1123, and 1124.1, and 1291(B)(10) and (11) shall be7 required to make its request at or prior to the pretrial conference. Requests for8 independent medical examinations made after that time shall be denied except for9 good cause or if it is found to be in the best interest of justice to order such10 examination.11 * * *12 The original instrument was prepared by Carla S. Roberts. The following digest, which does not constitute a part of the legislative instrument, was prepared by Sherri H. Breaux. DIGEST Riser (SB 367) Present law provides that, relative to workers' compensation, if any dispute arises as to the condition of the employee, capacity to work, or the current medical treatment, the director of the office of workers' compensation, upon application of any party, will order an examination of the employee by a medical practitioner appointed by the director. Present law further requires the medical examiner to report his conclusions from the examination to the director and to the parties and provides such report shall be prima facie evidence of the facts in any subsequent proceedings regarding the claimant's workers' compensation case. Proposed law retains present law but eliminates current medical treatment as a basis for dispute in this provision of present law. Present law defines "payor" for purposes of workers' compensation as the entity responsible, whether by law or contract, for the payment of the medical expenses incurred by a claimant as a result of a work related injury. Proposed law retains present law and adds the definition of "utilization review company" to mean the company or entity which contracts with the payor and reviews the injured worker's medical records and information and makes the determination of medical necessity, for the purposes of assisting the payor with the authorization of the injured worker's medical care, services and treatment. Proposed law provides that the payor may contract with a utilization review company to assist the payor in determining if the request for nonemergency diagnostic testing or treatment, in an amount which exceeds $750, is a medical necessity. Proposed law provides that a medical necessity determination by a utilization review SB NO. 367 SLS 12RS-553 REENGROSSED Page 5 of 6 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. company and the payor's consent to authorize the requested nonemergency diagnostic testing and treatment shall require only a review of the injured worker's medical records and shall not require an examination of the injured employee. Present law requires, in workers' compensation cases, the employer to furnish all necessary drugs, supplies, hospital care and services, medical and surgical treatment, and any nonmedical treatment recognized by the laws of this state as legal. Present law requires that, upon the first payment for an injured worker's medical care, service, or treatment, the payor, to communicate to the injured worker information regarding the procedure for requesting an independent medical examination in the event a dispute arises as to the condition of the employee. Present law further prohibits a payor from denying medical care, service, or treatment unless the payor can document a reasonable and diligent effort in communicating such information. Present law further provides that a payor who denies medical care, service, or treatment without making such an effort may be fined up to $500 or the cost of the medical care, service, or treatment, whichever is more. Proposed law retains present law but provides that present law also applies to disputes about the employee's capacity to work and the procedure for appealing the denial of medical treatment to the medical director at the office of workers' compensation. Present law requires that, upon receipt of notice of injury from the employer or other indication of an injury, the office of workers' compensation administration shall mail immediately to the injured employee and employer a brochure which sets forth in clear understandable language a summary statement of the rights, benefits, and obligations of employers and employees. Requires the brochure to specifically state the procedure for requesting an independent medical examination in the event a dispute arises as to the condition of the employee. Proposed law retains present law but provides that present law also applies to disputes about the employee's capacity to work. Present law provides that the director of the office of workers' compensation shall have certain powers, including the use of a utilization review process and to engage qualified experts in the appropriate health-care fields to assist him in the discharge of his responsibilities in utilization review. Present law requires any party wishing to request an independent medical examination of the claimant, including the examinations at the direction of the director of the office of workers' compensation, to make its request at or prior to the pretrial conference. Proposed law retains present law but removes the requirement that the request for an independent medical examination made at the behest of the director shall be made prior to the pretrial conference. Effective August 1, 2012. (Amends R.S. 23:1123, 1142(A) and (B)(1), 1203(E), 1307, and 1317.1(A)) Summary of Amendments Adopted by Senate Committee Amendments Proposed by Senate Committee on Labor and Industrial Relations to the original bill. 1. Add the definition of "utilization review company". SB NO. 367 SLS 12RS-553 REENGROSSED Page 6 of 6 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. 2. Authorizes payor to contract with a utilization review company to help determine if nonemergency diagnostic testing or treatment in an amount over $750 is a medical necessity. 3. Allows a medical necessity determination to be made by a utilization review company where the company only reviews the injured worker's medical records and does not administer a physical examination of the injured worker. Senate Floor Amendments to engrossed bill. 1. Makes technical change.