BILL ANALYSIS Senate Committee on Labor and Industrial Relations Richard Alarcon, Chair Date of Hearing: June 28, 2006 2005-2006 Regular Session Consultant: Rodger Dillon Fiscal:Yes Urgency:No Bill No: AB 1209 Author: Yee Amended: February 6, 2006 Subject: Workers' Compensation: medical treatment utilization schedule. Purpose: To remove the 24-visit cap on chiropractic, occupational therapy, and physical therapy services. Analysis: Existing law: Specifies that medical treatment that is reasonably required to cure or relieve the injured worker from the effects of his or her injury means treatment that is based upon the guidelines adopted by the administrative director pursuant to Labor Code Section 5307.27 or, prior to the adoption of those guidelines, the updated American College of Occupational and Environmental Medicine's Occupational Medicine (ACOEM) Practice Guidelines. Requires that the medical treatment utilization schedule (i.e., the guidelines) adopted by the AD address, at a minimum, the frequency, duration, intensity, and appropriateness of all treatment procedures and modalities commonly performed in workers' compensation cases. Specifies that the recommended guidelines set forth in the medical treatment utilization schedule, adopted by the AD, shall be presumptively correct on the issue of extent and scope of medical treatment. Explains that the presumption is rebuttable and may be controverted by a preponderance of the scientific medical evidence establishing that a variance from the guidelines is reasonably required to cure or relieve the injured worker from the effects of his or her injury. Specifies that for all injuries not covered by the American College of Occupational and Environmental Medicine's Occupational Medicine Practice Guidelines or official utilization schedule, authorized treatment shall be in accordance with other evidence based medical treatment guidelines generally recognized by the national medical community and that are scientifically based. Limits the injured worker to not more than 24 chiropractic, 24 occupational therapy, and 24 physical therapy visits per industrial injury, for injuries occurring on or after January 1, 2004 and specifies that the subdivision setting the 24-visit caps on chiropractic, occupational therapy, or physical therapy shall not apply when an employer authorizes, in writing, additional visits to a health care practitioner for physical medicine services. This Bill deletes the provisions prescribing the maximum number of chiropractic, occupational therapy, and physical therapy visits an employee is entitled to receive per industrial injury. Comments: 1. Proponents : The author states that although the vast majority of conditions are resolved before the 24 visits, for patients with serious conditions the 24-visit limitation has created a significant barrier to medically necessary care. The 24-visit cap is especially problematic for firefighters, police officers, truckers, and others who can't take pain medications and continue to work. Supporters point out that the reform legislation was Hearing Date: June 28, 2006 AB 1209 Consultant: Rodger Dillon Page 2 Senate Committee on Labor and Industrial Relations enacted before the relevant ACOEM guidelines were published, and at that time no one knew if the guidelines would adequately prevent over-utilization of physical medicine services - so the Legislature added the 24-visit caps. Since then, say supporters, ACOEM has been shown to have significantly reduced the number of authorized visits. Proponent say this is clear evidence the arbitrary caps have outlived their usefulness. 2. Opponents : Opponents point out that before reform chiropractic care was 148% higher in California than in 12 other states surveyed. They argue that the caps are responsible for much of the total savings in the workers' compensation system. They believe repealing the caps would send the wrong signal to employers and insurers and would result in increased workers' compensation costs. They hold that the caps are reasonable and should be retained. Support: California Chiropractic Association (sponsor) American Occupational Association American Occupational Therapy Association American Specialty Health Plans California Chiropractic Association (Sponsor) California Federation of Teachers Crawford Chiropractic, Inc., Stockton, CA Diversified Chiropractic Eureka Square Chiropractic GEIGER, Chiropractic Center, Granite Bay, CA Independent Employees of Merced County International Chiropractors' Association Jerry H. Wolfe, D.C. [Diversified Chiropractic, San Diego, CA.] John Arakelian, D.C. [San Joaquin Chiropractic & Rehabilitation, Fresno, CA.] Kenneth A. Thomas, D.C. [Eureka Square Chiropractic, Pacifica, CA.] Hearing Date: June 28, 2006 AB 1209 Consultant: Rodger Dillon Page 3 Senate Committee on Labor and Industrial Relations Latch, So & Hwang Chiropractic [San Francisco, CA] Michael J. Moore, D.C. [Moore Chiropractic Wellness Centre, Redding, CA.] Occupational Therapy Association of California Organization of SMUD Employees Palmer College of Chiropractic-West Federation of Teachers, AFT Local 6166 Richard E. Lind, D.C.[Lind Non-Force Chiropractic, Orange, CA.] San Bernardino Public Employees Association San Diego County Court Employees Association San Francisco District, CA Chiropractic Assoc. San Luis Obispo County Employees Association San Mateo District, CA Chiropractic Assoc. Santa Rosa City Employees Association Steven D. Jensen, D.C. [Jensen Sports Chiropractic, Camarillo, CA.] Whalen Chiropractic, Santee, CA. Numerous additional chiropractors and individuals Opposition: California Association of Joint Powers Authorities (CAJPA) California Chamber of Commerce California Coalition on Workers' Compensation California Joint Powers Authorities California Joint Powers Insurance Authority (CJPIA) California Manufacturers Technology Association California State Association of Counties City of Corona City of Torrance CNA Insurance Company County of San Diego County of Stanislaus CSAC-Excess Insurance Authority a California Joint Powers Authority Department of Industrial Relations Independent Maintenance Contractors Association League of California Cities Los Angeles County Board of Supervisors [as amended Feb. 6, Hearing Date: June 28, 2006 AB 1209 Consultant: Rodger Dillon Page 4 Senate Committee on Labor and Industrial Relations 2006] Pacific Association of Building Service Contractors Regional Council of Rural Counties Riverside Unified School District Small Business California Stanislaus County Hearing Date: June 28, 2006 AB 1209 Consultant: Rodger Dillon Page 5 Senate Committee on Labor and Industrial Relations