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Senate Democrats on Wednesday demonstrated that they have no intention of leaving California's workers' compensation reforms alone, voting in committee to approve six bills that make adjustments to the system, including three that are opposed by the insurance industry.

In party-line votes, the Senate Labor and Industrial Relations approved measures that would allow physicians to opt out of network contracts that require them to treat injured workers, extend a statute that allows employees to predesignate their treating physician and allow employers to waive the 24-visit cap on treatment by chiropractors and physical therapists.

Sam Sorich, president of the Association of California Insurance Companies, said he is hoping that Republican Gov. Arnold Schwarzenegger will fulfill his promise to veto any measures that roll back the reform bill he championed in 2004.

"It does seem that the majority of committee members today think there are elements of the reforms that need to be changed, and I guess given the party majority in the committee that was to be expected," Sorich said. "No major surprise, but I guess disappointment on our part because we do feel there are some significant changes being made that are counter-productive."

Sorich's group opposed these measures, all of which passed in 3-2 votes, with Democrats supporting and Republicans opposing:

* Assembly Bill 1612 by Fran Pavley, D-Agoura Hills. The bill would require medical provider networks to remove health-care providers from the networks if the providers ask to be released. The provision would not apply in cases where the provider had been predesignated by an injured worker, however. The bill now goes to the full Senate, but it must also return to the Assembly Insurance Committee because its subject matter was substantially changed after passage by the Assembly earlier this year.

* AB 2068 by Pedro Nava, D-Santa Barbara. The bill would repeal a provision of the 2004 reform bill that ends workers' rights to predesignate their treating physicians in 2007 and another provision that requires the Division of Workers' Compensation to halt predesignations if more than 7% of the state's workers take advantage of the provision. The bill now goes to the full Senate.

* AB 3026 by Sally J. Lieber, D-Old Mountain View. The bill would allow employers to waive the 24-visit cap on visits by injured workers to chiropractors, physical therapists and occupational therapists. Sorich said insurers are opposed because the law may be interpreted to mean that American College of Environmental and Occupational Medicine treatment guidelines no longer apply in instances where the treatment cap is waived. The bill now goes to the full Senate.

Sorich said as he sees it, all three measures chip away at various elements of SB 899, the 2004 reform bill. However, he said he doesn't yet know if Schwarzenegger will have the same view when the bills reach his desk.

"That's the $64,000 question, isn't it?"

Pavley's bill may be amended before final approval. Committee Chairman Richard Alarcon, D-Los Angeles and Assemblywoman Sheila Keuhl, D-Santa Monica, expressed concern that the measure would cause physicians to abandon the workers' compensation system in numbers large enough to interfere with injured workers' access to care. Although no promises were made, Sorich said Pavley appeared open to amending the bill before it goes back to the Assembly Insurance Committee. He said insurers would like to see some sort of process, perhaps requiring a 30- or 60-day notice before abandoning a medical provider network, to give insurers time to replace physicians who want out.

Pavley's legislative staff did not return calls by WorkCompCentral on Wednesday.

Sorich's group was neutral on three other workers' comp bills approved by the Senate Labor and Industrial Relations Committee Wednesday:

* Assembly Bill 1862 by Juan Vargas, D-San Diego, requires the Division of Workers' Compensation to conduct a study on first-aid treatment provided to workers who sustain minor injuries and illnesses. Vargas said there is confusion in state statute as to whether a doctor may request additional follow-up visits to treat a worker for a first-aid case.

* Assembly Bill 2942 by Paul Koretz, D-West Hollywood, requires the Division of Workers' Compensation to study appropriate reimbursement rates for hospitals that treat injured workers suffering severe burns. Hospitals say the fee schedule is set too low for the most serious burn patients.

* AB 1368 by Tom Umberg, D-Santa Ana, seeks to clarify state law, providing that apportionment does not apply to public safety employees who enjoy rebuttable presumptions of work-related causes for injuries such as hernias and cardiac conditions.

The labor committee did not approve everything that came before it on Wednesday. Members voted 3-2, with Democrats opposed, to reject AB 871 by Rick Keene, R-Chico. The bill sought to remove impediments to forming health care organizations to make them more competitive with medical provider networks.

-- Source WorkCompCentral

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