SB 863 Summary

• Establishes independent medical review and independent bill review processes for disputed workers' compensation medical treatment decisions and billing disputes, effective January 1, 2013 and July 1, 2013 respectively.

• Revises permanent disability benefit calculations for injuries occurring on or after January 1, 2013, using the AMA Guides to Evaluation of Permanent Impairment (5th Edition) with a 1.4 adjustment factor and restricting impairment increases for sleep dysfunction, sexual dysfunction, and psychiatric disorders.

• Creates a new return-to-work program funded with $120 million annually from the Workers' Compensation Administration Revolving Fund to provide supplemental payments to workers with disproportionately low permanent disability benefits.

• Prohibits issuance of self-insurance certificates to professional employer organizations, leasing employers, and temporary services employers after January 1, 2013, and establishes new lien filing fee requirements ($150 filing fee and $100 activation fee for certain liens).

• Adds State of California to employers eligible for labor-management agreements under workers' compensation and modifies medical provider network requirements including mandatory written physician acknowledgment, medical access assistants, and four-year approval periods.