Full Text of HB1287 99th General Assembly
HB1287ham003 99TH GENERAL ASSEMBLY | Rep. Michael J. Madigan Filed: 5/21/2015
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| 1 | | AMENDMENT TO HOUSE BILL 1287
| 2 | | AMENDMENT NO. ______. Amend House Bill 1287, AS AMENDED, by | 3 | | inserting the following in its proper numeric sequence in
the | 4 | | bill:
| 5 | | "Section 15. The Workers' Compensation Act is amended by | 6 | | changing Section 8.2 as follows: | 7 | | (820 ILCS 305/8.2)
| 8 | | Sec. 8.2. Fee schedule.
| 9 | | (a) Except as provided for in subsection (c), for | 10 | | procedures, treatments, or services covered under this Act and | 11 | | rendered or to be rendered on and after February 1, 2006, the | 12 | | maximum allowable payment shall be 90% of the 80th percentile | 13 | | of charges and fees as determined by the Commission utilizing | 14 | | information provided by employers' and insurers' national | 15 | | databases, with a minimum of 12,000,000 Illinois line item | 16 | | charges and fees comprised of health care provider and hospital |
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| 1 | | charges and fees as of August 1, 2004 but not earlier than | 2 | | August 1, 2002. These charges and fees are provider billed | 3 | | amounts and shall not include discounted charges. The 80th | 4 | | percentile is the point on an ordered data set from low to high | 5 | | such that 80% of the cases are below or equal to that point and | 6 | | at most 20% are above or equal to that point. The Commission | 7 | | shall adjust these historical charges and fees as of August 1, | 8 | | 2004 by the Consumer Price Index-U for the period August 1, | 9 | | 2004 through September 30, 2005. The Commission shall establish | 10 | | fee schedules for procedures, treatments, or services for | 11 | | hospital inpatient, hospital outpatient, emergency room and | 12 | | trauma, ambulatory surgical treatment centers, and | 13 | | professional services. These charges and fees shall be | 14 | | designated by geozip or any smaller geographic unit. The data | 15 | | shall in no way identify or tend to identify any patient, | 16 | | employer, or health care provider. As used in this Section, | 17 | | "geozip" means a three-digit zip code based on data | 18 | | similarities, geographical similarities, and frequencies. A | 19 | | geozip does not cross state boundaries. As used in this | 20 | | Section, "three-digit zip code" means a geographic area in | 21 | | which all zip codes have the same first 3 digits. If a geozip | 22 | | does not have the necessary number of charges and fees to | 23 | | calculate a valid percentile for a specific procedure, | 24 | | treatment, or service, the Commission may combine data from the | 25 | | geozip with up to 4 other geozips that are demographically and | 26 | | economically similar and exhibit similarities in data and |
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| 1 | | frequencies until the Commission reaches 9 charges or fees for | 2 | | that specific procedure, treatment, or service. In cases where | 3 | | the compiled data contains less than 9 charges or fees for a | 4 | | procedure, treatment, or service, reimbursement shall occur at | 5 | | 76% of charges and fees as determined by the Commission in a | 6 | | manner consistent with the provisions of this paragraph. | 7 | | Providers of out-of-state procedures, treatments, services, | 8 | | products, or supplies shall be reimbursed at the lesser of that | 9 | | state's fee schedule amount or the fee schedule amount for the | 10 | | region in which the employee resides. If no fee schedule exists | 11 | | in that state, the provider shall be reimbursed at the lesser | 12 | | of the actual charge or the fee schedule amount for the region | 13 | | in which the employee resides. Not later than September 30 in | 14 | | 2006 and each year thereafter, the Commission shall | 15 | | automatically increase or decrease the maximum allowable | 16 | | payment for a procedure, treatment, or service established and | 17 | | in effect on January 1 of that year by the percentage change in | 18 | | the Consumer Price Index-U for the 12 month period ending | 19 | | August 31 of that year. The increase or decrease shall become | 20 | | effective on January 1 of the following year. As used in this | 21 | | Section, "Consumer Price Index-U" means the index published by | 22 | | the Bureau of Labor Statistics of the U.S. Department of Labor, | 23 | | that measures the average change in prices of all goods and | 24 | | services purchased by all urban consumers, U.S. city average, | 25 | | all items, 1982-84=100. | 26 | | (a-1) Notwithstanding the provisions of subsection (a) and |
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| 1 | | unless otherwise indicated, the following provisions shall | 2 | | apply to the medical fee schedule starting on September 1, | 3 | | 2011: | 4 | | (1) The Commission shall establish and maintain fee | 5 | | schedules for procedures, treatments, products, services, | 6 | | or supplies for hospital inpatient, hospital outpatient, | 7 | | emergency room, ambulatory surgical treatment centers, | 8 | | accredited ambulatory surgical treatment facilities, | 9 | | prescriptions filled and dispensed outside of a licensed | 10 | | pharmacy, dental services, and professional services. This | 11 | | fee schedule shall be based on the fee schedule amounts | 12 | | already established by the Commission pursuant to | 13 | | subsection (a) of this Section. However, starting on | 14 | | January 1, 2012, these fee schedule amounts shall be | 15 | | grouped into geographic regions in the following manner: | 16 | | (A) Four regions for non-hospital fee schedule | 17 | | amounts shall be utilized: | 18 | | (i) Cook County; | 19 | | (ii) DuPage, Kane, Lake, and Will Counties; | 20 | | (iii) Bond, Calhoun, Clinton, Jersey, | 21 | | Macoupin, Madison, Monroe, Montgomery, Randolph, | 22 | | St. Clair, and Washington Counties; and | 23 | | (iv) All other counties of the State. | 24 | | (B) Fourteen regions for hospital fee schedule | 25 | | amounts shall be utilized: | 26 | | (i) Cook, DuPage, Will, Kane, McHenry, DeKalb, |
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| 1 | | Kendall, and Grundy Counties; | 2 | | (ii) Kankakee County; | 3 | | (iii) Madison, St. Clair, Macoupin, Clinton, | 4 | | Monroe, Jersey, Bond, and Calhoun Counties; | 5 | | (iv) Winnebago and Boone Counties; | 6 | | (v) Peoria, Tazewell, Woodford, Marshall, and | 7 | | Stark Counties; | 8 | | (vi) Champaign, Piatt, and Ford Counties; | 9 | | (vii) Rock Island, Henry, and Mercer Counties; | 10 | | (viii) Sangamon and Menard Counties; | 11 | | (ix) McLean County; | 12 | | (x) Lake County; | 13 | | (xi) Macon County; | 14 | | (xii) Vermilion County; | 15 | | (xiii) Alexander County; and | 16 | | (xiv) All other counties of the State. | 17 | | (2) If a geozip, as defined in subsection (a) of this | 18 | | Section, overlaps into one or more of the regions set forth | 19 | | in this Section, then the Commission shall average or | 20 | | repeat the charges and fees in a geozip in order to | 21 | | designate charges and fees for each region. | 22 | | (3) In cases where the compiled data contains less than | 23 | | 9 charges or fees for a procedure, treatment, product, | 24 | | supply, or service or where the fee schedule amount cannot | 25 | | be determined by the non-discounted charge data, | 26 | | non-Medicare relative values and conversion factors |
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| 1 | | derived from established fee schedule amounts, coding | 2 | | crosswalks, or other data as determined by the Commission, | 3 | | reimbursement shall occur at 76% of charges and fees until | 4 | | September 1, 2011 and 53.2% of charges and fees until | 5 | | September 1, 2015 thereafter as determined by the | 6 | | Commission in a manner consistent with the provisions of | 7 | | this paragraph. On and after September 1, 2015, | 8 | | reimbursement shall occur at 37.24% of charges and fees as | 9 | | determined by the Commission in a manner consistent with | 10 | | the provisions of this paragraph. | 11 | | (4) To establish additional fee schedule amounts, the | 12 | | Commission shall utilize provider non-discounted charge | 13 | | data, non-Medicare relative values and conversion factors | 14 | | derived from established fee schedule amounts, and coding | 15 | | crosswalks. The Commission may establish additional fee | 16 | | schedule amounts based on either the charge or cost of the | 17 | | procedure, treatment, product, supply, or service. | 18 | | (5) Implants shall be reimbursed at 25% above the net | 19 | | manufacturer's invoice price less rebates, plus actual | 20 | | reasonable and customary shipping charges whether or not | 21 | | the implant charge is submitted by a provider in | 22 | | conjunction with a bill for all other services associated | 23 | | with the implant, submitted by a provider on a separate | 24 | | claim form, submitted by a distributor, or submitted by the | 25 | | manufacturer of the implant. "Implants" include the | 26 | | following codes or any substantially similar updated code |
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| 1 | | as determined by the Commission: 0274 | 2 | | (prosthetics/orthotics); 0275 (pacemaker); 0276 (lens | 3 | | implant); 0278 (implants); 0540 and 0545 (ambulance); 0624 | 4 | | (investigational devices); and 0636 (drugs requiring | 5 | | detailed coding). Non-implantable devices or supplies | 6 | | within these codes shall be reimbursed at 65% of actual | 7 | | charge, which is the provider's normal rates under its | 8 | | standard chargemaster. A standard chargemaster is the | 9 | | provider's list of charges for procedures, treatments, | 10 | | products, supplies, or services used to bill payers in a | 11 | | consistent manner. | 12 | | (6) The Commission shall automatically update all | 13 | | codes and associated rules with the version of the codes | 14 | | and rules valid on January 1 of that year. | 15 | | (a-2) For procedures, treatments, services, or supplies | 16 | | covered under this Act and rendered or to be rendered on or | 17 | | after September 1, 2011, the maximum allowable payment shall be | 18 | | 70% of the fee schedule amounts, which shall be adjusted yearly | 19 | | by the Consumer Price Index-U, as described in subsection (a) | 20 | | of this Section. | 21 | | (a-2.5) For procedures, treatments, services, or supplies | 22 | | covered under this Act and rendered or to be rendered on or | 23 | | after September 1, 2015, the maximum allowable payment shall be | 24 | | 40% of the fee schedule amount, which shall be adjusted yearly | 25 | | by the Consumer Price Index-U, as described in subsection (a) | 26 | | of this Section. This shall not apply to any procedure, |
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| 1 | | treatment, or service classified by an evaluation and | 2 | | management code or a physical medicine code on the fee | 3 | | schedule. | 4 | | (a-3) Prescriptions filled and dispensed outside of a | 5 | | licensed pharmacy shall be subject to a fee schedule that shall | 6 | | not exceed the Average Wholesale Price (AWP) plus a dispensing | 7 | | fee of $4.18. AWP or its equivalent as registered by the | 8 | | National Drug Code shall be set forth for that drug on that | 9 | | date as published in Medispan. | 10 | | (b) Notwithstanding the provisions of subsection (a), if
| 11 | | the Commission finds that there is a significant limitation on
| 12 | | access to quality health care in either a specific field of
| 13 | | health care services or a specific geographic limitation on
| 14 | | access to health care, it may change the Consumer Price Index-U
| 15 | | increase or decrease for that specific field or specific
| 16 | | geographic limitation on access to health care to address that
| 17 | | limitation. | 18 | | (c) The Commission shall establish by rule a process to | 19 | | review those medical cases or outliers that involve | 20 | | extra-ordinary treatment to determine whether to make an | 21 | | additional adjustment to the maximum payment within a fee | 22 | | schedule for a procedure, treatment, or service. | 23 | | (d) When a patient notifies a provider that the treatment, | 24 | | procedure, or service being sought is for a work-related | 25 | | illness or injury and furnishes the provider the name and | 26 | | address of the responsible employer, the provider shall bill |
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| 1 | | the employer directly. The employer shall make payment and | 2 | | providers shall submit bills and records in accordance with the | 3 | | provisions of this Section. | 4 | | (1) All payments to providers for treatment provided | 5 | | pursuant to this Act shall be made within 30 days of | 6 | | receipt of the bills as long as the claim contains | 7 | | substantially all the required data elements necessary to | 8 | | adjudicate the bills. | 9 | | (2) If the claim does not contain substantially all the | 10 | | required data elements necessary to adjudicate the bill, or | 11 | | the claim is denied for any other reason, in whole or in | 12 | | part, the employer or insurer shall provide written | 13 | | notification, explaining the basis for the denial and | 14 | | describing any additional necessary data elements, to the | 15 | | provider within 30 days of receipt of the bill. | 16 | | (3) In the case of nonpayment to a provider within 30 | 17 | | days of receipt of the bill which contained substantially | 18 | | all of the required data elements necessary to adjudicate | 19 | | the bill or nonpayment to a provider of a portion of such a | 20 | | bill up to the lesser of the actual charge or the payment | 21 | | level set by the Commission in the fee schedule established | 22 | | in this Section, the bill, or portion of the bill, shall | 23 | | incur interest at a rate of 1% per month payable to the | 24 | | provider. Any required interest payments shall be made | 25 | | within 30 days after payment. | 26 | | (e) Except as provided in subsections (e-5), (e-10), and |
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| 1 | | (e-15), a provider shall not hold an employee liable for costs | 2 | | related to a non-disputed procedure, treatment, or service | 3 | | rendered in connection with a compensable injury. The | 4 | | provisions of subsections (e-5), (e-10), (e-15), and (e-20) | 5 | | shall not apply if an employee provides information to the | 6 | | provider regarding participation in a group health plan. If the | 7 | | employee participates in a group health plan, the provider may | 8 | | submit a claim for services to the group health plan. If the | 9 | | claim for service is covered by the group health plan, the | 10 | | employee's responsibility shall be limited to applicable | 11 | | deductibles, co-payments, or co-insurance. Except as provided | 12 | | under subsections (e-5), (e-10), (e-15), and (e-20), a provider | 13 | | shall not bill or otherwise attempt to recover from the | 14 | | employee the difference between the provider's charge and the | 15 | | amount paid by the employer or the insurer on a compensable | 16 | | injury, or for medical services or treatment determined by the | 17 | | Commission to be excessive or unnecessary. | 18 | | (e-5) If an employer notifies a provider that the employer | 19 | | does not consider the illness or injury to be compensable under | 20 | | this Act, the provider may seek payment of the provider's | 21 | | actual charges from the employee for any procedure, treatment, | 22 | | or service rendered. Once an employee informs the provider that | 23 | | there is an application filed with the Commission to resolve a | 24 | | dispute over payment of such charges, the provider shall cease | 25 | | any and all efforts to collect payment for the services that | 26 | | are the subject of the dispute. Any statute of limitations or |
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| 1 | | statute of repose applicable to the provider's efforts to | 2 | | collect payment from the employee shall be tolled from the date | 3 | | that the employee files the application with the Commission | 4 | | until the date that the provider is permitted to resume | 5 | | collection efforts under the provisions of this Section. | 6 | | (e-10) If an employer notifies a provider that the employer | 7 | | will pay only a portion of a bill for any procedure, treatment, | 8 | | or service rendered in connection with a compensable illness or | 9 | | disease, the provider may seek payment from the employee for | 10 | | the remainder of the amount of the bill up to the lesser of the | 11 | | actual charge, negotiated rate, if applicable, or the payment | 12 | | level set by the Commission in the fee schedule established in | 13 | | this Section. Once an employee informs the provider that there | 14 | | is an application filed with the Commission to resolve a | 15 | | dispute over payment of such charges, the provider shall cease | 16 | | any and all efforts to collect payment for the services that | 17 | | are the subject of the dispute. Any statute of limitations or | 18 | | statute of repose applicable to the provider's efforts to | 19 | | collect payment from the employee shall be tolled from the date | 20 | | that the employee files the application with the Commission | 21 | | until the date that the provider is permitted to resume | 22 | | collection efforts under the provisions of this Section. | 23 | | (e-15) When there is a dispute over the compensability of | 24 | | or amount of payment for a procedure, treatment, or service, | 25 | | and a case is pending or proceeding before an Arbitrator or the | 26 | | Commission, the provider may mail the employee reminders that |
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| 1 | | the employee will be responsible for payment of any procedure, | 2 | | treatment or service rendered by the provider. The reminders | 3 | | must state that they are not bills, to the extent practicable | 4 | | include itemized information, and state that the employee need | 5 | | not pay until such time as the provider is permitted to resume | 6 | | collection efforts under this Section. The reminders shall not | 7 | | be provided to any credit rating agency. The reminders may | 8 | | request that the employee furnish the provider with information | 9 | | about the proceeding under this Act, such as the file number, | 10 | | names of parties, and status of the case. If an employee fails | 11 | | to respond to such request for information or fails to furnish | 12 | | the information requested within 90 days of the date of the | 13 | | reminder, the provider is entitled to resume any and all | 14 | | efforts to collect payment from the employee for the services | 15 | | rendered to the employee and the employee shall be responsible | 16 | | for payment of any outstanding bills for a procedure, | 17 | | treatment, or service rendered by a provider. | 18 | | (e-20) Upon a final award or judgment by an Arbitrator or | 19 | | the Commission, or a settlement agreed to by the employer and | 20 | | the employee, a provider may resume any and all efforts to | 21 | | collect payment from the employee for the services rendered to | 22 | | the employee and the employee shall be responsible for payment | 23 | | of any outstanding bills for a procedure, treatment, or service | 24 | | rendered by a provider as well as the interest awarded under | 25 | | subsection (d) of this Section. In the case of a procedure, | 26 | | treatment, or service deemed compensable, the provider shall |
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| 1 | | not require a payment rate, excluding the interest provisions | 2 | | under subsection (d), greater than the lesser of the actual | 3 | | charge or the payment level set by the Commission in the fee | 4 | | schedule established in this Section. Payment for services | 5 | | deemed not covered or not compensable under this Act is the | 6 | | responsibility of the employee unless a provider and employee | 7 | | have agreed otherwise in writing. Services not covered or not | 8 | | compensable under this Act are not subject to the fee schedule | 9 | | in this Section. | 10 | | (f) Nothing in this Act shall prohibit an employer or
| 11 | | insurer from contracting with a health care provider or group
| 12 | | of health care providers for reimbursement levels for benefits | 13 | | under this Act different
from those provided in this Section. | 14 | | (g) On or before January 1, 2010 the Commission shall | 15 | | provide to the Governor and General Assembly a report regarding | 16 | | the implementation of the medical fee schedule and the index | 17 | | used for annual adjustment to that schedule as described in | 18 | | this Section.
| 19 | | (Source: P.A. 97-18, eff. 6-28-11.)".
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