Bill Caption

Relating to preauthorization and concurrent review of certain health care services under the workers' compensation system.  

Fiscal Notes

From the Legislative Budget Board: no significant fiscal implication to the state is anticipated.

Bill Analysis

SB 1494 would amend the Labor Code to allow the Commissioner of Workers’ Compensation to adopt rules requiring preauthorization and concurrent review for work-hardening or work-conditioning services. The commissioner may exempt a health care facility that is credentialed by an organization designated by commissioner rule.

Vote Recommendation Notes

Upon first glance, it appears this bill violates our free market and limited government principles by requiring preauthorization and concurrent review requirements of certain rehabilitation services including giving the commissioner the authority to pick winners and losers by exempting facilities from these requirements. 

However, we have found through additional background information current law has allowed for a monopoly to occur within this specific field for accreditation service. Because of this government created monopoly, inequities within the market have formed that are excluding many from being able to offer these services. As such, this bill seeks to remove the monopoly and allow for greater competition.

Because workers compensation is a government program we recognize the authority of the legislature to address the issues related to the program as it sees fit. For these reasons, and because it is difficult to say whether or not this bill will actually have the intended effect, we will remain neutral on SB 1494.