The CA Recess Update from Workers' Compensation Action Network
Last week, California lawmakers began their summer recess, despite the fact that July 1 marked the start of a new fiscal year and California does not have an approved state budget. In the run-up to run out for summer break, however, lawmakers did deal with a flurry of legislation, including workers’ compensation bills.
Overall, this legislative session has offered a mixed bag on workers’ compensation issues. Legislation that would control increasing medical costs or address the destabilizing court rulings handed down last year on permanent disability ratings haven’t materialized. On the other hand, some bills that would have dramatically increased costs were stalled in fiscal committees. (See AB 1994 and AB 1603).
Below are summaries of several workers’ compensation bills where legislative action continues:
AB 933 by Assemblymember Paul Fong (D-Cupertino) would prohibit physicians from reviewing requests for medical treatment (also known as “utilization review”) unless the physician is licensed in the state of California. This bill would also impose new re-application requirements for Medical Provider Networks. It is supported by labor unions, California-based physicians and lawyers for injured workers, who want UR doctors under control of the state Medical Board. It is opposed by employer organizations, local government groups and the state agency that oversees California’s workers’ compensation system, who say that a state license unnecessary because California uses national treatment guidelines and that the bill will limit the supply of UR doctors and drive up costs. (Governor Schwarzenegger vetoed similar legislation in 2008.)
AB 2253 by Assemblymember Joe Coto (D-San Jose) would double the maximum time after retirement (from 5 to 10 years) that cancer developed by firefighters is still presumed to be work-related. The bill is supported by public safety labor unions and lawyers representing injured workers, who say the time span between exposure and cancer symptoms can be longer than the current 5-year maximum. The bill is opposed by employer groups, local governments and taxpayer groups who say the bill will increase costs for cities and counties by making virtually any instance of cancer among firefighters compensable as a workers’ compensation claim.
AB 2397 by Assemblymember Jose Solorio (D-Santa Ana) would double the amount of time (from 1 to 2 years) that public safety officers are eligible to receive their full salary if they are off work due to a workplace injury, subject to an agreement with their employer. Under current law, public safety officers can receive their full wages in lieu of temporary disability benefits or longer under a negotiated salary continuation plan. The bill is supported by public safety labor unions and lawyers representing injured workers who say added flexibility is needed in providing salary continuation to injured safety officers. The bill is opposed by employer and local government organizations who say that the bill could result in up to four years of mandated wage replacement benefits at substantial cost to local governments.
AJR 42 is a resolution by Assemblymember Solorio that expresses the California Legislature’s support for a bill pending in Congress known as the Medicare Secondary Payer Enhancement Act. The MSPEA would address delays and uncertainties that exist today in calculating how much to reimburse the federal government for Medicare expenses that should be paid for instead by a third party under a liability or workers’ compensation settlement. This resolution is supported by WCAN, local government, small business organizations, and lawyers representing injured workers.
