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FLASH REPORT!
Applicants' Initiative Rolls Back
Reform An applicant attorney in Dubbed the "Fair
Medical Treatment for Workers Act" the proposal would allow injured
workers to go to the doctor of their choosing, unlike current law that allows
them only to do so if they pre-designate a treating physician in advance of
an injury. Otherwise, current law gives an employer
the right to send them to a physician of its choosing, which increasingly
these days includes sending them to a physician medical provider network
(MPN). The proposed initiative,
by applicant attorney William S. Morris, would also require the
administrative director of the Division of Workers' Compensation to update
the medical fee schedule on an annual basis, which some consider an overly
burdensome and impossible recommendation. The fear is that such an
initiative would turn back the clock on laws that have had a significant
impact on claims costs. "The question is how
far does it roll back the clock?" says Mark Webb, vice president of
government affairs for Employers Direct Insurance Co. "It certainly
rolls it back to SB 228 and SB 899. But if you look
at the section on the medical fee schedule it would roll it back even further
than that." The proposed initiative
would require the administrative director of the Division of Workers'
Compensation to revisit the medical fee schedule on an annual basis. Judging from recent history, the DWC only has the
resources to tackle portions of the fee schedule at a time.
And there's a further caveat in the proposal that could drive up costs
quickly if the AD fails to update the schedule. "Should the
Administrative Director fail to establish a schedule of reasonable medical
charges or fail to review the schedule of reasonable medical charges on an
annual basis, the medical practitioners bill shall be paid in accordance with
the practitioner's usual and customary charges," the proposal reads. "Ugh," respond
employers and the industry. Efforts to reach Morris
were fruitless as his office was closed for the
state holiday on Monday. According to Gil Stein,
former president of the California Applicants Attorneys Association, his
organization is not behind the proposal. "The only connection
is that he's a member," he says. "The
initiative is Mr. Morrison's alone at this point and has not been endorsed by
CAAA and he has not requested funding from CAAA. While
CAAA is not backing the proposal, we are very much in favor of better medical
care for injured workers." The proposal was filed
with the Attorney General's Office last week. The AG
will prepare a title and summary of the proposal, a process that usually
takes 60 days. After that the AG sends it to the
Secretary of State's office, which then provides calendar deadlines to the
proponent and to the county elections officials. The
initiative process is costly, particularly during the time when backers
gather signatures to qualify the referendum for the ballot – in this case in
2008. "I don't know if
there is going to be an effort to actually qualify this once it comes out of
title and summary," Webb says. "But it is
something that at this stage in the process has to be taken seriously." And that, as they say, is 30. ------------------ Filed by Nils Wright in |
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