Bill Text: FL S1662 | 2013 | Regular Session | Introduced
Bill Title: Workers' Compensation
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2013-05-03 - Died in Banking and Insurance, companion bill(s) passed, see CS/SB 662 (Ch. 2013-131) [S1662 Detail]
Download: Florida-2013-S1662-Introduced.html
Florida Senate - 2013 SB 1662 By Senator Grimsley 21-00273-13 20131662__ 1 A bill to be entitled 2 An act relating to workers’ compensation; amending s. 3 440.13, F.S.; prohibiting an employer or carrier from 4 refusing to authorize a health care provider to treat 5 an injured employee solely because the health care 6 provider is also the dispensing practitioner; 7 authorizing a health care provider to dispense and 8 fill prescriptions for medicines if the health care 9 provider who is also the dispensing practitioner 10 receives authorization from an employer or a carrier 11 to treat an employee; prohibiting the Department of 12 Financial Services, an employer, or carrier from 13 requiring the injured employee to use a specified 14 pharmacy, pharmacist, or dispensing practitioner; 15 deleting provisions to conform to changes made by the 16 act; providing the reimbursement amount for 17 prescription medications; specifying circumstances 18 under which a provider is required to give a credit to 19 the insurance carrier or self-insured employer for 20 each prescription that costs more than a specified 21 amount; providing for the deposit of the credit; 22 requiring the department to recalculate the amount of 23 the provider rebate; prohibiting a physician or the 24 physician’s assignee from holding an ownership 25 interest in a licensed pharmaceutical repackaging 26 entity or to set or cause to be set a repackaged 27 pharmaceutical average wholesale price; providing an 28 effective date. 29 30 Be It Enacted by the Legislature of the State of Florida: 31 32 Section 1. Subsections (3) and (12) of section 440.13, 33 Florida Statutes, are amended, present subsection (17) is 34 amended and redesignated as subsection (18), and a new 35 subsection (17) is added to that section, to read: 36 440.13 Medical services and supplies; penalty for 37 violations; limitations.— 38 (3) PROVIDER ELIGIBILITY; AUTHORIZATION.— 39 (a) As a condition fortoeligibility for payment under 40 this chapter, a health care provider who renders services must 41 be a certified health care provider and must receive 42 authorization from the carrier before providing treatment. This 43 paragraph does not apply to emergency care. An employer or a 44 carrier may not refuse to authorize a health care provider to 45 treat an injured employee solely because the health care 46 provider is also the dispensing practitioner, as defined in s. 47 465.0276. The department shall adopt rules to administer 48implementthe certification of health care providers. 49 (b) A health care provider who renders emergency care shall 50mustnotify the carrier by the close of the third business day 51 after it has rendered such care. If the emergency care results 52 in admission of the employee to a health care facility, the 53 health care provider shallmustnotify the carrier by telephone 54 within 24 hours after initial treatment. Emergency care is not 55 compensable under this chapter unless the injury requiring 56 emergency care arose as a result of a work-related accident. 57 Pursuant to chapter 395, all licensed physicians and health care 58 providers in this state shall be required to make their services 59 available for emergency treatment of any employee eligible for 60 workers’ compensation benefits. To refuse to make such treatment 61 available is cause for revocation of a license. 62 (c) A health care provider may not refer the employee to 63 another health care provider, diagnostic facility, therapy 64 center, or other facility without prior authorization from the 65 carrier, except when emergency care is rendered. Any referral 66 must be to a health care provider that has been certified by the 67 department, unless the referral is for emergency treatment, and 68 the referral must be made in accordance with practice parameters 69 and protocols of treatment as provided for in this chapter. 70 (d) A carrier shallmustrespond, by telephone or in 71 writing, to a request for authorization from an authorized 72 health care provider by the close of the third business day 73 after receipt of the request. A carrier who fails to respond to 74 a written request for authorization for referral for medical 75 treatment by the close of the third business day after receipt 76 of the request consents to the medical necessity for such 77 treatment. All such requests must be made to the carrier. Notice 78 to the carrier does not include notice to the employer. 79 (e) Carriers shall adopt procedures for receiving, 80 reviewing, documenting, and responding to requests for 81 authorization. Such procedures mustshallbe for a health care 82 provider certified under this section. 83 (f) By accepting payment under this chapter for treatment 84 rendered to an injured employee, a health care provider consents 85 to the jurisdiction of the department as providedset forthin 86 subsection (11) and to the submission of all records and other 87 information concerning such treatment to the department in 88 connection with a reimbursement dispute, audit, or review as 89 provided by this section. The health care provider must further 90 agree to comply with any decision of the department rendered 91 under this section. 92 (g) The employee is not liable for payment for medical 93 treatment or services provided pursuant to this section except 94 as otherwise provided in this section. 95 (h) The provisions of s. 456.053 are applicable to 96 referrals among health care providers, as defined in subsection 97 (1), treating injured workers. 98 (i) Notwithstanding paragraph (d), a claim for specialist 99 consultations, surgical operations, physiotherapeutic or 100 occupational therapy procedures, X-ray examinations, or special 101 diagnostic laboratory tests that cost more than $1,000 and other 102 specialty services that the department identifies by rule is not 103 valid and reimbursable unless the services have been expressly 104 authorized by the carrier, or unless the carrier has failed to 105 respond within 10 days to a written request for authorization, 106 or unless emergency care is required. The insurer shall 107 authorize such consultation or procedure unless the health care 108 provider or facility is not authorized or certified, unless such 109 treatment is not in accordance with practice parameters and 110 protocols of treatment established in this chapter, or unless a 111 judge of compensation claims has determined that the 112 consultation or procedure is not medically necessary, not in 113 accordance with the practice parameters and protocols of 114 treatment established in this chapter, or otherwise not 115 compensable under this chapter. Authorization of a treatment 116 plan does not constitute express authorization for purposes of 117 this section, except to the extent the carrier provides 118 otherwise in its authorization procedures. This paragraph does 119 not limit the carrier’s obligation to identify and disallow 120 overutilization or billing errors. 121 (j) Notwithstanding anything in this chapter to the 122 contrary, a sick or injured employee isshall beentitled, at 123 all times, to free, full, and absolute choice in the selection 124 of the pharmacy or pharmacist dispensing and filling 125 prescriptions for medicines required under this chapter. It is 126 expressly forbidden for the department, an employer, or a 127 carrier, or any agent or representative of the department, an 128 employer, or a carrier, to select the pharmacy or pharmacist 129 which the sick or injured employee must use; condition coverage 130 or payment on the basis of the pharmacy or pharmacist utilized; 131 or to otherwise interfere in the selection by the sick or 132 injured employee of a pharmacy or pharmacist. 133 (k) If a health care provider who is also the dispensing 134 practitioner, as defined in s. 465.0276, receives authorization 135 from an employer or a carrier to treat an employee pursuant to 136 paragraph (a), the health care provider may dispense and fill 137 prescriptions for medicines under this chapter. For purposes of 138 dispensing and filling prescriptions for medicines, the 139 department, employer, or carrier, or an agent or representative 140 of the department, employer, or carrier, may not select the 141 pharmacy, pharmacist, or dispensing practitioner that the 142 employee must use. 143 (12) CREATION OF THREE-MEMBER PANEL; GUIDES OF MAXIMUM 144 REIMBURSEMENT ALLOWANCES.— 145 (a) A three-member panel is created, consisting of the 146 Chief Financial Officer, or the Chief Financial Officer’s 147 designee, and two members to be appointed by the Governor, 148 subject to confirmation by the Senate, one member who, on 149 account of present or previous vocation, employment, or 150 affiliation, isshall beclassified as a representative of 151 employers, the other member who, on account of previous 152 vocation, employment, or affiliation, isshall beclassified as 153 a representative of employees. The panel shall determine 154 statewide schedules of maximum reimbursement allowances for 155 medically necessary treatment, care, and attendance provided by 156 physicians, hospitals, ambulatory surgical centers, work 157 hardening programs, pain programs, and durable medical 158 equipment. The maximum reimbursement allowances for inpatient 159 hospital care isshallbebased on a schedule of per diem rates, 160 to be approved by the three-member panel no later than March 1, 161 1994, to be used in conjunction with a precertification manual 162 as determined by the department, including maximum hours in 163 which an outpatient may remain in observation status, which may 164shallnot exceed 23 hours. All compensable charges for hospital 165 outpatient care areshallbereimbursed at 75 percent of usual 166 and customary charges, except as otherwise provided by this 167 subsection.Annually,The three-member panel shall annually 168 adopt schedules of maximum reimbursement allowances for 169 physicians, hospital inpatient care, hospital outpatient care, 170 ambulatory surgical centers, work-hardening programs, and pain 171 programs. An individual physician, hospital, ambulatory surgical 172 center, pain program, or work-hardening program isshallbe173 reimbursedeitherthe agreed-upon contract price or the maximum 174 reimbursement allowance in the appropriate schedule. 175 (b) It is the intent of the Legislature to increase the 176 schedule of maximum reimbursement allowances for selected 177 physicians effective January 1, 2004, and to pay for the 178 increases through reductions in payments to hospitals. Revisions 179 developed pursuant to this subsection are limited to the 180 following: 181 1. Payments for outpatient physical, occupational, and 182 speech therapy provided by hospitals areshallbereduced to the 183 schedule of maximum reimbursement allowances for these services 184 which applies to nonhospital providers. 185 2. Payments for scheduled outpatient nonemergency 186 radiological and clinical laboratory services that are not 187 provided in conjunction with a surgical procedure areshallbe188 reduced to the schedule of maximum reimbursement allowances for 189 these services which applies to nonhospital providers. 190 3. Outpatient reimbursement for scheduled surgeries are 191shallbereduced from 75 percent of charges to 60 percent of 192 charges. 193 4. Maximum reimbursement for a physician licensed under 194 chapter 458 or chapter 459 isshallbeincreased to 110 percent 195 of the reimbursement allowed by Medicare, using appropriate 196 codes and modifiers or the medical reimbursement level adopted 197 by the three-member panel as of January 1, 2003, whichever is 198 greater. 199 5. Maximum reimbursement for surgical procedures isshall200beincreased to 140 percent of the reimbursement allowed by 201 Medicare or the medical reimbursement level adopted by the 202 three-member panel as of January 1, 2003, whichever is greater. 203(c) As to reimbursement for a prescription medication, the204reimbursement amount for a prescription shall be the average205wholesale price plus $4.18 for the dispensing fee, except where206the carrier has contracted for a lower amount. Fees for207pharmaceuticals and pharmaceutical services shall be208reimbursable at the applicable fee schedule amount. Where the209employer or carrier has contracted for such services and the210employee elects to obtain them through a provider not a party to211the contract, the carrier shall reimburse at the schedule,212negotiated, or contract price, whichever is lower. No such213contract shall rely on a provider that is not reasonably214accessible to the employee.215 (c)(d)Reimbursement for all fees and other charges for 216 such treatment, care, and attendance, including treatment, care, 217 and attendance provided by any hospital or other health care 218 provider, ambulatory surgical center, work-hardening program, or 219 pain program, maymustnot exceed the amounts provided by the 220 uniform schedule of maximum reimbursement allowances as 221 determined by the panel or as otherwise provided in this 222 section. This subsection also applies to independent medical 223 examinations performed by health care providers under this 224 chapter. In determining the uniform schedule, the panel shall 225 first approve the data which it finds representative of 226 prevailing charges in the state for similar treatment, care, and 227 attendance of injured persons. Each health care provider, health 228 care facility, ambulatory surgical center, work-hardening 229 program, or pain program receiving workers’ compensation 230 payments shall maintain records verifying their usual charges. 231 In establishing the uniform schedule of maximum reimbursement 232 allowances, the panel must consider: 233 1. The levels of reimbursement for similar treatment, care, 234 and attendance made by other health care programs or third-party 235 providers; 236 2. The impact upon cost to employers for providing a level 237 of reimbursement for treatment, care, and attendance which will 238 ensure the availability of treatment, care, and attendance 239 required by injured workers; 240 3. The financial impact of the reimbursement allowances 241 upon health care providers and health care facilities, including 242 trauma centers as defined in s. 395.4001, and its effect upon 243 their ability to make available to injured workers such 244 medically necessary remedial treatment, care, and attendance. 245 The uniform schedule of maximum reimbursement allowances must be 246 reasonable, must promote health care cost containment and 247 efficiency with respect to the workers’ compensation health care 248 delivery system, and must be sufficient to ensure availability 249 of such medically necessary remedial treatment, care, and 250 attendance to injured workers; and 251 4. The most recent average maximum allowable rate of 252 increase for hospitals determined by the Health Care Board under 253 chapter 408. 254 (d)(e)In addition to establishing the uniform schedule of 255 maximum reimbursement allowances, the panel shall: 256 1. Take testimony, receive records, and collect data to 257 evaluate the adequacy of the workers’ compensation fee schedule, 258 nationally recognized fee schedules and alternative methods of 259 reimbursement to certified health care providers and health care 260 facilities for inpatient and outpatient treatment and care. 261 2. Survey certified health care providers and health care 262 facilities to determine the availability and accessibility of 263 workers’ compensation health care delivery systems for injured 264 workers. 265 3. Survey carriers to determine the estimated impact on 266 carrier costs and workers’ compensation premium rates by 267 implementing changes to the carrier reimbursement schedule or 268 implementing alternative reimbursement methods. 269 4. Submit recommendations on or before January 1, 2003, and 270 biennially thereafter, to the President of the Senate and the 271 Speaker of the House of Representatives on methods to improve 272 the workers’ compensation health care delivery system. 273 274 The department, as requested, shall provide data to the panel, 275 including, but not limited to, utilization trends in the 276 workers’ compensation health care delivery system. The 277 department shall provide the panel with an annual report 278 regarding the resolution of medical reimbursement disputes and 279 any actions pursuant to subsection (8). The department shall 280 provide administrative support and service to the panel to the 281 extent requested by the panel. 282 (17) REIMBURSEMENT FOR PRESCRIPTION MEDICATION.—The 283 reimbursement amount for prescription medication is the average 284 wholesale price plus $4.18 for the dispensing fee, unless the 285 carrier and the provider seeking reimbursement have directly 286 contracted with each other for a lower reimbursement amount. 287 (a) If a prescription has been repackaged or relabeled, the 288 provider shall give a $15 credit to the insurance carrier or 289 self-insured employer for each prescription that costs more than 290 $25. The credit must be reflected in the Explanation of Bill 291 Review provided by the carrier or employer. The credit does not 292 apply if the carrier and the provider seeking reimbursement have 293 directly contracted with each other for a lower reimbursement 294 amount. Any credit to a self-insured employer must be directly 295 deposited to the self-insurance fund of the entity. Beginning 296 July 1, 2015, and every 2 years thereafter, the Department of 297 Financial Services shall recalculate the amount of the provider 298 rebate based on actual claim data submitted to the department 299 for the previous 2 years. 300 (b) A physician or the physician’s assignee may not hold an 301 ownership interest in a licensed pharmaceutical repackaging 302 entity and may not set or cause to be set a repackaged 303 pharmaceutical average wholesale price. 304 (18)(17)PENALTIES.—A person who failsFailureto comply 305 with this section violates the provisionsshall beconsidereda306violationof this chapter and is subject to penalties as 307 provided for in s. 440.525. 308 Section 2. This act shall take effect July 1, 2013.