HOUSE BILL No. 5234

 

December 15, 2011, Introduced by Reps. Yonker, Liss and O'Brien and referred to the Committee on Insurance.

 

     A bill to amend 1969 PA 317, entitled

 

"Worker's disability compensation act of 1969,"

 

by amending section 315 (MCL 418.315), as amended by 2009 PA 226.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 315. (1) The employer shall furnish, or cause to be

 

furnished, to an employee who receives a personal injury arising

 

out of and in the course of employment, reasonable medical,

 

surgical, and hospital services and medicines, or other attendance

 

or treatment recognized by the laws of this state as legal, when

 

they are needed. However, an employer is not required to reimburse

 

or cause to be reimbursed charges for an optometric service unless

 

that service was included in the definition of practice of

 

optometry under section 17401 of the public health code, 1978 PA

 

368, MCL 333.17401, as of May 20, 1992 or for a chiropractic


 

service unless that service was included in the definition of

 

practice of chiropractic under section 16401 of the public health

 

code, 1978 PA 368, MCL 333.16401, as of January 1, 2009. An

 

employer is not required to reimburse or cause to be reimbursed

 

charges for services performed by a profession that was not

 

licensed or registered by the laws of this state on or before

 

January 1, 1998, but that becomes licensed, registered, or

 

otherwise recognized by the laws of this state after January 1,

 

1998. An employer is not required to reimburse or cause to be

 

reimbursed charges for physical therapy service unless that service

 

was provided by a licensed physical therapist or physical therapist

 

assistant under the supervision of a licensed physical therapist

 

pursuant to a prescription issued by an individual holding a

 

license issued under part 166, 170, 175, or 180 of the public

 

health code, 1978 PA 368, MCL 333.16601 to 333.16648, 333.17001 to

 

333.17084, 333.17501 to 333.17556, and 333.18001 to 333.18058, or

 

the equivalent license issued by another state. Attendant or

 

nursing care shall not be ordered in excess of 56 hours per week if

 

the care is to be provided by the employee's spouse, brother,

 

sister, child, parent, or any combination of these persons. After

 

10 days from the inception of medical care as provided in this

 

section, the employee may treat with a physician of his or her own

 

choice by giving to the employer the name of the physician and his

 

or her intention to treat with the physician. The employer or the

 

employer's carrier may file a petition objecting to the named

 

physician selected by the employee and setting forth reasons for

 

the objection. If the employer or carrier can show cause why the


 

employee should not continue treatment with the named physician of

 

the employee's choice, after notice to all parties and a prompt

 

hearing by a worker's compensation magistrate, the worker's

 

compensation magistrate may order that the employee discontinue

 

treatment with the named physician or pay for the treatment

 

received from the physician from the date the order is mailed. The

 

employer shall also supply to the injured employee dental service,

 

crutches, artificial limbs, eyes, teeth, eyeglasses, hearing

 

apparatus, and other appliances necessary to cure, so far as

 

reasonably possible, and relieve from the effects of the injury. If

 

the employer fails, neglects, or refuses so to do, the employee

 

shall be reimbursed for the reasonable expense paid by the

 

employee, or payment may be made in behalf of the employee to

 

persons to whom the unpaid expenses may be owing, by order of the

 

worker's compensation magistrate. The worker's compensation

 

magistrate may prorate attorney fees at the contingent fee rate

 

paid by the employee.

 

     (2) Except as otherwise provided in subsection (1), all fees

 

and other charges for any treatment or attendance, service,

 

devices, apparatus, or medicine under subsection (1), are subject

 

to rules promulgated by the workers' compensation agency pursuant

 

to the administrative procedures act of 1969, 1969 PA 306, MCL

 

24.201 to 24.328. The rules promulgated shall establish schedules

 

of maximum charges for the treatment or attendance, service,

 

devices, apparatus, or medicine, which schedule shall be annually

 

revised. A health facility or health care provider shall be paid

 

either its usual and customary charge for the treatment or


 

attendance, service, devices, apparatus, or medicine, or the

 

maximum charge established under the rules, whichever is less.

 

     (3) The director of the workers' compensation agency shall

 

provide for an advisory committee to aid and assist in establishing

 

the schedules of maximum charges under subsection (2) for charges

 

or fees that are payable under this section. The advisory committee

 

shall be appointed by and serve at the pleasure of the director.

 

     (4) If a carrier determines that a health facility or health

 

care provider has made any excessive charges or required

 

unjustified treatment, hospitalization, or visits, the health

 

facility or health care provider shall not receive payment under

 

this chapter from the carrier for the excessive fees or unjustified

 

treatment, hospitalization, or visits, and is liable to return to

 

the carrier the fees or charges already collected. The workers'

 

compensation agency may review the records and medical bills of a

 

health facility or health care provider determined by a carrier to

 

not be in compliance with the schedule of charges or to be

 

requiring unjustified treatment, hospitalization, or office visits.

 

     (5) As used in this section, "utilization review" means the

 

initial evaluation by a carrier of the appropriateness in terms of

 

both the level and the quality of health care and health services

 

provided an injured employee, based on medically accepted

 

standards. A utilization review shall be accomplished by a carrier

 

pursuant to a system established by the workers' compensation

 

agency that identifies the utilization of health care and health

 

services above the usual range of utilization for the health care

 

and health services based on medically accepted standards and


 

provides for acquiring necessary records, medical bills, and other

 

information concerning the health care or health services.

 

     (6) By accepting payment under this chapter, a health facility

 

or health care provider shall be considered to have consented to

 

submitting necessary records and other information concerning

 

health care or health services provided for utilization review

 

pursuant to this section. The health facilities and health care

 

providers shall be considered to have agreed to comply with any

 

decision of the workers' compensation agency pursuant to subsection

 

(7). A health facility or health care provider that submits false

 

or misleading records or other information to a carrier or the

 

workers' compensation agency is guilty of a misdemeanor punishable

 

by a fine of not more than $1,000.00 or by imprisonment for not

 

more than 1 year, or both.

 

     (7) If it is determined by a carrier that a health facility or

 

health care provider improperly overutilized or otherwise rendered

 

or ordered inappropriate health care or health services, or that

 

the cost of the health care or health services was inappropriate,

 

the health facility or health care provider may appeal to the

 

workers' compensation agency regarding that determination pursuant

 

to procedures provided for under the system of utilization review.

 

     (8) The criteria or standards established for the utilization

 

review shall be established by rules promulgated by the workers'

 

compensation agency. A carrier that complies with the criteria or

 

standards as determined by the workers' compensation agency shall

 

be certified by the department.

 

     (9) If a health facility or health care provider provides


 

health care or a health service that is not usually associated

 

with, is longer in duration in time than, is more frequent than, or

 

extends over a greater number of days than that health care or

 

service usually does with the diagnosis or condition for which the

 

patient is being treated, the health facility or health care

 

provider may be required by the carrier to explain the necessity or

 

indication for the reasons why in writing.

 

     Enacting section 1. This amendatory act does not take effect

 

unless House Bill No. 4603 of the 96th Legislature is enacted into

 

law.