Bill Text: CA AB2779 | 2009-2010 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Workers' compensation: compounded drugs.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Engrossed - Dead) 2010-08-24 - To inactive file on motion of Senator DeSaulnier. [AB2779 Detail]

Download: California-2009-AB2779-Amended.html

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BILL NUMBER: AB 2779	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 22, 2010
	AMENDED IN ASSEMBLY  APRIL 8, 2010

INTRODUCED BY    Committee on Insurance   (
  Solorio (Chair), Bradford, Carter, Feuer, Hayashi,
Nava, and Torres   )   Assembly Member
  Solorio 

                        MARCH 3, 2010

    An act to amend Section 11629.79 of the Insurance Code,
relating to automobile insurance.   An act to add
Section 5307.13 to the Labor Code, relating to workers' compensation.




	LEGISLATIVE COUNSEL'S DIGEST


   AB 2779, as amended,  Committee on Insurance 
 Solorio  .  California Automobile Assigned Risk
Plan.   Workers' compensation: compound medication.
 
   Existing law establishes a workers' compensation system,
administered by the Administrative Director of the Division of
Workers' Compensation, to compensate an employee for injuries
sustained in the course of his or her employment. Existing law
requires the administrative director, on or before December 1, 2004,
to adopt, after public hearings, a medical treatment utilization
schedule, as specified.  
   This bill would provide that, until the administrative director
adopts medical treatment utilization guidelines governing compound
medication, a compound medication shall be covered only if there is
prior authorization for it as medically necessary, as specified.
 
   Existing law provides for an assigned risk plan for automobile
insurance.  
   This bill would delete obsolete provisions relating to adoption of
emergency regulations. 
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 5307.13 is added to the 
 Labor Code   , to read:  
   5307.13.  (a) Until the administrative director adopts medical
treatment utilization guidelines governing compound medication, a
compound medication shall be covered only if there is prior
authorization for it as medically necessary based on a determination
of all of the following:
   (1) All active ingredients in the compound medication are
medications that have been approved by the federal Food and Drug
Administration (FDA).
   (2) The compound medication is not a copy or substitute for an
available FDA-approved product.
   (3) The safety and effectiveness of use of the compound medication
for the prescribed indication is supported by FDA-approval or
adequate medical and scientific research.
   (4) FDA-approved alternatives to the compound medication have been
tried with therapeutic failure or patient intolerance.
   (b) The maximum allowance for the compound medication shall not
exceed the sum of the amounts that would be allowed for the
ingredient costs and dispensing fee under regulations adopted
pursuant to Section 5307.1.
   (c) No fee shall be allowed for any compound medication unless the
initial billing for that compound medication includes all
information necessary for calculation of the fee pursuant to this
section and regulations adopted by the administrative director. 

  SECTION 1.    Section 11629.79 of the Insurance
Code is amended to read:
   11629.79.  (a) The program for the County of Los Angeles and the
City and County of San Francisco is authorized to commence operations
on January 1, 2000, but shall be fully operational no later than
July 1, 2000.
   (b) To this end, the commissioner, in consultation with the
California Automobile Assigned Risk Plan, shall adopt regulations to
implement the provisions of this article within 60 days of its
effective date.
   (c) The program for the Counties of Alameda, Fresno, Orange,
Riverside, San Bernardino, and San Diego shall commence operations on
April 1, 2006, and shall be made operational in all other counties
of California according to the discretion of the commissioner. The
commissioner, in consultation with the California Automobile Assigned
Risk Plan, shall adopt regulations to implement the expansion of the
program to these counties.