Bill Text: IL HB3558 | 2021-2022 | 102nd General Assembly | Introduced


Bill Title: Amends the Workers' Compensation Act. Provides that the Illinois Workers' Compensation Commission, upon consultation with the Workers' Compensation Medical Fee Advisory Board, shall promulgate an evidence-based drug formulary. Requires prescriptions in workers' compensation cases to be limited to the drugs on the formulary. Effective immediately.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Introduced - Dead) 2022-02-18 - Rule 19(a) / Re-referred to Rules Committee [HB3558 Detail]

Download: Illinois-2021-HB3558-Introduced.html


102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3558

Introduced , by Rep. Dan Ugaste

SYNOPSIS AS INTRODUCED:
820 ILCS 305/8.2

Amends the Workers' Compensation Act. Provides that the Illinois Workers' Compensation Commission, upon consultation with the Workers' Compensation Medical Fee Advisory Board, shall promulgate an evidenced-based drug formulary. Requires prescriptions in workers' compensation cases to be limited to the drugs on the formulary. Effective immediately.
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A BILL FOR

HB3558LRB102 10874 JLS 16204 b
1 AN ACT concerning employment.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Workers' Compensation Act is amended by
5changing Section 8.2 as follows:
6 (820 ILCS 305/8.2)
7 Sec. 8.2. Fee schedule.
8 (a) Except as provided for in subsection (c), for
9procedures, treatments, or services covered under this Act and
10rendered or to be rendered on and after February 1, 2006, the
11maximum allowable payment shall be 90% of the 80th percentile
12of charges and fees as determined by the Commission utilizing
13information provided by employers' and insurers' national
14databases, with a minimum of 12,000,000 Illinois line item
15charges and fees comprised of health care provider and
16hospital charges and fees as of August 1, 2004 but not earlier
17than August 1, 2002. These charges and fees are provider
18billed amounts and shall not include discounted charges. The
1980th percentile is the point on an ordered data set from low to
20high such that 80% of the cases are below or equal to that
21point and at most 20% are above or equal to that point. The
22Commission shall adjust these historical charges and fees as
23of August 1, 2004 by the Consumer Price Index-U for the period

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1August 1, 2004 through September 30, 2005. The Commission
2shall establish fee schedules for procedures, treatments, or
3services for hospital inpatient, hospital outpatient,
4emergency room and trauma, ambulatory surgical treatment
5centers, and professional services. These charges and fees
6shall be designated by geozip or any smaller geographic unit.
7The data shall in no way identify or tend to identify any
8patient, employer, or health care provider. As used in this
9Section, "geozip" means a three-digit zip code based on data
10similarities, geographical similarities, and frequencies. A
11geozip does not cross state boundaries. As used in this
12Section, "three-digit zip code" means a geographic area in
13which all zip codes have the same first 3 digits. If a geozip
14does not have the necessary number of charges and fees to
15calculate a valid percentile for a specific procedure,
16treatment, or service, the Commission may combine data from
17the geozip with up to 4 other geozips that are demographically
18and economically similar and exhibit similarities in data and
19frequencies until the Commission reaches 9 charges or fees for
20that specific procedure, treatment, or service. In cases where
21the compiled data contains less than 9 charges or fees for a
22procedure, treatment, or service, reimbursement shall occur at
2376% of charges and fees as determined by the Commission in a
24manner consistent with the provisions of this paragraph.
25Providers of out-of-state procedures, treatments, services,
26products, or supplies shall be reimbursed at the lesser of

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1that state's fee schedule amount or the fee schedule amount
2for the region in which the employee resides. If no fee
3schedule exists in that state, the provider shall be
4reimbursed at the lesser of the actual charge or the fee
5schedule amount for the region in which the employee resides.
6Not later than September 30 in 2006 and each year thereafter,
7the Commission shall automatically increase or decrease the
8maximum allowable payment for a procedure, treatment, or
9service established and in effect on January 1 of that year by
10the percentage change in the Consumer Price Index-U for the 12
11month period ending August 31 of that year. The increase or
12decrease shall become effective on January 1 of the following
13year. As used in this Section, "Consumer Price Index-U" means
14the index published by the Bureau of Labor Statistics of the
15U.S. Department of Labor, that measures the average change in
16prices of all goods and services purchased by all urban
17consumers, U.S. city average, all items, 1982-84=100.
18 (a-1) Notwithstanding the provisions of subsection (a) and
19unless otherwise indicated, the following provisions shall
20apply to the medical fee schedule starting on September 1,
212011:
22 (1) The Commission shall establish and maintain fee
23 schedules for procedures, treatments, products, services,
24 or supplies for hospital inpatient, hospital outpatient,
25 emergency room, ambulatory surgical treatment centers,
26 accredited ambulatory surgical treatment facilities,

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1 prescriptions filled and dispensed outside of a licensed
2 pharmacy, dental services, and professional services. This
3 fee schedule shall be based on the fee schedule amounts
4 already established by the Commission pursuant to
5 subsection (a) of this Section. However, starting on
6 January 1, 2012, these fee schedule amounts shall be
7 grouped into geographic regions in the following manner:
8 (A) Four regions for non-hospital fee schedule
9 amounts shall be utilized:
10 (i) Cook County;
11 (ii) DuPage, Kane, Lake, and Will Counties;
12 (iii) Bond, Calhoun, Clinton, Jersey,
13 Macoupin, Madison, Monroe, Montgomery, Randolph,
14 St. Clair, and Washington Counties; and
15 (iv) All other counties of the State.
16 (B) Fourteen regions for hospital fee schedule
17 amounts shall be utilized:
18 (i) Cook, DuPage, Will, Kane, McHenry, DeKalb,
19 Kendall, and Grundy Counties;
20 (ii) Kankakee County;
21 (iii) Madison, St. Clair, Macoupin, Clinton,
22 Monroe, Jersey, Bond, and Calhoun Counties;
23 (iv) Winnebago and Boone Counties;
24 (v) Peoria, Tazewell, Woodford, Marshall, and
25 Stark Counties;
26 (vi) Champaign, Piatt, and Ford Counties;

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1 (vii) Rock Island, Henry, and Mercer Counties;
2 (viii) Sangamon and Menard Counties;
3 (ix) McLean County;
4 (x) Lake County;
5 (xi) Macon County;
6 (xii) Vermilion County;
7 (xiii) Alexander County; and
8 (xiv) All other counties of the State.
9 (2) If a geozip, as defined in subsection (a) of this
10 Section, overlaps into one or more of the regions set
11 forth in this Section, then the Commission shall average
12 or repeat the charges and fees in a geozip in order to
13 designate charges and fees for each region.
14 (3) In cases where the compiled data contains less
15 than 9 charges or fees for a procedure, treatment,
16 product, supply, or service or where the fee schedule
17 amount cannot be determined by the non-discounted charge
18 data, non-Medicare relative values and conversion factors
19 derived from established fee schedule amounts, coding
20 crosswalks, or other data as determined by the Commission,
21 reimbursement shall occur at 76% of charges and fees until
22 September 1, 2011 and 53.2% of charges and fees thereafter
23 as determined by the Commission in a manner consistent
24 with the provisions of this paragraph.
25 (4) To establish additional fee schedule amounts, the
26 Commission shall utilize provider non-discounted charge

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1 data, non-Medicare relative values and conversion factors
2 derived from established fee schedule amounts, and coding
3 crosswalks. The Commission may establish additional fee
4 schedule amounts based on either the charge or cost of the
5 procedure, treatment, product, supply, or service.
6 (5) Implants shall be reimbursed at 25% above the net
7 manufacturer's invoice price less rebates, plus actual
8 reasonable and customary shipping charges whether or not
9 the implant charge is submitted by a provider in
10 conjunction with a bill for all other services associated
11 with the implant, submitted by a provider on a separate
12 claim form, submitted by a distributor, or submitted by
13 the manufacturer of the implant. "Implants" include the
14 following codes or any substantially similar updated code
15 as determined by the Commission: 0274
16 (prosthetics/orthotics); 0275 (pacemaker); 0276 (lens
17 implant); 0278 (implants); 0540 and 0545 (ambulance); 0624
18 (investigational devices); and 0636 (drugs requiring
19 detailed coding). Non-implantable devices or supplies
20 within these codes shall be reimbursed at 65% of actual
21 charge, which is the provider's normal rates under its
22 standard chargemaster. A standard chargemaster is the
23 provider's list of charges for procedures, treatments,
24 products, supplies, or services used to bill payers in a
25 consistent manner.
26 (6) The Commission shall automatically update all

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1 codes and associated rules with the version of the codes
2 and rules valid on January 1 of that year.
3 (a-2) For procedures, treatments, services, or supplies
4covered under this Act and rendered or to be rendered on or
5after September 1, 2011, the maximum allowable payment shall
6be 70% of the fee schedule amounts, which shall be adjusted
7yearly by the Consumer Price Index-U, as described in
8subsection (a) of this Section.
9 (a-3) Prescriptions filled and dispensed outside of a
10licensed pharmacy shall be subject to a fee schedule that
11shall not exceed the Average Wholesale Price (AWP) plus a
12dispensing fee of $4.18. AWP or its equivalent as registered
13by the National Drug Code shall be set forth for that drug on
14that date as published in Medi-Span Medispan.
15 (a-4) By September 1, 2022, the Commission, in
16consultation with the Workers' Compensation Medical Fee
17Advisory Board, shall promulgate by rule an evidence-based
18drug formulary and any rules necessary for its administration.
19Prescriptions prescribed for workers' compensation cases shall
20be limited to the prescription drugs and doses on the closed
21formulary.
22 A request for a prescription that is not on the closed
23formulary shall be reviewed under Section 8.7.
24 (b) Notwithstanding the provisions of subsection (a), if
25the Commission finds that there is a significant limitation on
26access to quality health care in either a specific field of

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1health care services or a specific geographic limitation on
2access to health care, it may change the Consumer Price
3Index-U increase or decrease for that specific field or
4specific geographic limitation on access to health care to
5address that limitation.
6 (c) The Commission shall establish by rule a process to
7review those medical cases or outliers that involve
8extra-ordinary treatment to determine whether to make an
9additional adjustment to the maximum payment within a fee
10schedule for a procedure, treatment, or service.
11 (d) When a patient notifies a provider that the treatment,
12procedure, or service being sought is for a work-related
13illness or injury and furnishes the provider the name and
14address of the responsible employer, the provider shall bill
15the employer or its designee directly. The employer or its
16designee shall make payment for treatment in accordance with
17the provisions of this Section directly to the provider,
18except that, if a provider has designated a third-party
19billing entity to bill on its behalf, payment shall be made
20directly to the billing entity. Providers shall submit bills
21and records in accordance with the provisions of this Section.
22 (1) All payments to providers for treatment provided
23 pursuant to this Act shall be made within 30 days of
24 receipt of the bills as long as the bill contains
25 substantially all the required data elements necessary to
26 adjudicate the bill.

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1 (2) If the bill does not contain substantially all the
2 required data elements necessary to adjudicate the bill,
3 or the claim is denied for any other reason, in whole or in
4 part, the employer or insurer shall provide written
5 notification to the provider in the form of an explanation
6 of benefits explaining the basis for the denial and
7 describing any additional necessary data elements within
8 30 days of receipt of the bill. The Commission, with
9 assistance from the Medical Fee Advisory Board, shall
10 adopt rules detailing the requirements for the explanation
11 of benefits required under this subsection.
12 (3) In the case (i) of nonpayment to a provider within
13 30 days of receipt of the bill which contained
14 substantially all of the required data elements necessary
15 to adjudicate the bill, (ii) of nonpayment to a provider
16 of a portion of such a bill, or (iii) where the provider
17 has not been issued an explanation of benefits for a bill,
18 the bill, or portion of the bill up to the lesser of the
19 actual charge or the payment level set by the Commission
20 in the fee schedule established in this Section, shall
21 incur interest at a rate of 1% per month payable by the
22 employer to the provider. Any required interest payments
23 shall be made by the employer or its insurer to the
24 provider within 30 days after payment of the bill.
25 (4) If the employer or its insurer fails to pay
26 interest within 30 days after payment of the bill as

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1 required pursuant to paragraph (3), the provider may bring
2 an action in circuit court for the sole purpose of seeking
3 payment of interest pursuant to paragraph (3) against the
4 employer or its insurer responsible for insuring the
5 employer's liability pursuant to item (3) of subsection
6 (a) of Section 4. The circuit court's jurisdiction shall
7 be limited to enforcing payment of interest pursuant to
8 paragraph (3). Interest under paragraph (3) is only
9 payable to the provider. An employee is not responsible
10 for the payment of interest under this Section. The right
11 to interest under paragraph (3) shall not delay, diminish,
12 restrict, or alter in any way the benefits to which the
13 employee or his or her dependents are entitled under this
14 Act.
15 The changes made to this subsection (d) by this amendatory
16Act of the 100th General Assembly apply to procedures,
17treatments, and services rendered on and after the effective
18date of this amendatory Act of the 100th General Assembly.
19 (e) Except as provided in subsections (e-5), (e-10), and
20(e-15), a provider shall not hold an employee liable for costs
21related to a non-disputed procedure, treatment, or service
22rendered in connection with a compensable injury. The
23provisions of subsections (e-5), (e-10), (e-15), and (e-20)
24shall not apply if an employee provides information to the
25provider regarding participation in a group health plan. If
26the employee participates in a group health plan, the provider

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1may submit a claim for services to the group health plan. If
2the claim for service is covered by the group health plan, the
3employee's responsibility shall be limited to applicable
4deductibles, co-payments, or co-insurance. Except as provided
5under subsections (e-5), (e-10), (e-15), and (e-20), a
6provider shall not bill or otherwise attempt to recover from
7the employee the difference between the provider's charge and
8the amount paid by the employer or the insurer on a compensable
9injury, or for medical services or treatment determined by the
10Commission to be excessive or unnecessary.
11 (e-5) If an employer notifies a provider that the employer
12does not consider the illness or injury to be compensable
13under this Act, the provider may seek payment of the
14provider's actual charges from the employee for any procedure,
15treatment, or service rendered. Once an employee informs the
16provider that there is an application filed with the
17Commission to resolve a dispute over payment of such charges,
18the provider shall cease any and all efforts to collect
19payment for the services that are the subject of the dispute.
20Any statute of limitations or statute of repose applicable to
21the provider's efforts to collect payment from the employee
22shall be tolled from the date that the employee files the
23application with the Commission until the date that the
24provider is permitted to resume collection efforts under the
25provisions of this Section.
26 (e-10) If an employer notifies a provider that the

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1employer will pay only a portion of a bill for any procedure,
2treatment, or service rendered in connection with a
3compensable illness or disease, the provider may seek payment
4from the employee for the remainder of the amount of the bill
5up to the lesser of the actual charge, negotiated rate, if
6applicable, or the payment level set by the Commission in the
7fee schedule established in this Section. Once an employee
8informs the provider that there is an application filed with
9the Commission to resolve a dispute over payment of such
10charges, the provider shall cease any and all efforts to
11collect payment for the services that are the subject of the
12dispute. Any statute of limitations or statute of repose
13applicable to the provider's efforts to collect payment from
14the employee shall be tolled from the date that the employee
15files the application with the Commission until the date that
16the provider is permitted to resume collection efforts under
17the provisions of this Section.
18 (e-15) When there is a dispute over the compensability of
19or amount of payment for a procedure, treatment, or service,
20and a case is pending or proceeding before an Arbitrator or the
21Commission, the provider may mail the employee reminders that
22the employee will be responsible for payment of any procedure,
23treatment or service rendered by the provider. The reminders
24must state that they are not bills, to the extent practicable
25include itemized information, and state that the employee need
26not pay until such time as the provider is permitted to resume

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1collection efforts under this Section. The reminders shall not
2be provided to any credit rating agency. The reminders may
3request that the employee furnish the provider with
4information about the proceeding under this Act, such as the
5file number, names of parties, and status of the case. If an
6employee fails to respond to such request for information or
7fails to furnish the information requested within 90 days of
8the date of the reminder, the provider is entitled to resume
9any and all efforts to collect payment from the employee for
10the services rendered to the employee and the employee shall
11be responsible for payment of any outstanding bills for a
12procedure, treatment, or service rendered by a provider.
13 (e-20) Upon a final award or judgment by an Arbitrator or
14the Commission, or a settlement agreed to by the employer and
15the employee, a provider may resume any and all efforts to
16collect payment from the employee for the services rendered to
17the employee and the employee shall be responsible for payment
18of any outstanding bills for a procedure, treatment, or
19service rendered by a provider as well as the interest awarded
20under subsection (d) of this Section. In the case of a
21procedure, treatment, or service deemed compensable, the
22provider shall not require a payment rate, excluding the
23interest provisions under subsection (d), greater than the
24lesser of the actual charge or the payment level set by the
25Commission in the fee schedule established in this Section.
26Payment for services deemed not covered or not compensable

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1under this Act is the responsibility of the employee unless a
2provider and employee have agreed otherwise in writing.
3Services not covered or not compensable under this Act are not
4subject to the fee schedule in this Section.
5 (f) Nothing in this Act shall prohibit an employer or
6insurer from contracting with a health care provider or group
7of health care providers for reimbursement levels for benefits
8under this Act different from those provided in this Section.
9 (g) On or before January 1, 2010 the Commission shall
10provide to the Governor and General Assembly a report
11regarding the implementation of the medical fee schedule and
12the index used for annual adjustment to that schedule as
13described in this Section.
14(Source: P.A. 100-1117, eff. 11-27-18; 100-1175, eff.
151-11-19.)
16 Section 99. Effective date. This Act takes effect upon
17becoming law.
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