March 15, 2006, Introduced by Senators McMANUS and ALLEN and referred to the Committee on Health Policy.
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 1998 PA 447.
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. 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. 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 bureau of worker's 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 bureau 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 bureau
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 bureau 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 bureau 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 bureau 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
bureau
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 bureau
workers' compensation agency. A carrier that complies with the
criteria
or standards as determined by the
bureau 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.