Workers' Compensation Updates

Since 2003 there have been many changes to the California worker's compensation system. Some of the most prominent changes to the law are as follows:

Fraud
Maximum penalty for fraud was increased to $150,000

Vocational Rehabilitation
This benefit has been repealed and replaced by supplemental job displacement benefits voucher up to a maximum of $10,000 depending on the level of permanent disability.

24 Visit Caps
Chiropractic treatment, physical therapy and occupational therapy visits are capped at 24 visits for dates of injury 1/1/04 and after.

American College of Occupational and Environmental Medicine (ACOEM)
ACOEM treatment guidelines are now presumptively correct and every physician must treat all occupational injuries in accordance with these guidelines.

Utilization Review
Every employer must now establish a utilization review process for the purpose of approving, modifying, delaying or denying medical treatment.

Temporary Disability
Any injury occurring on or after 4/19/04 will have an aggregate temporary disability cap of 104 weeks (two years) beginning with the first payment of temporary disability, except for specified injuries that require more recuperation time such as severe burns, eye injuries and amputations. In those cases temporary disability benefits will be capped at 240 weeks within five years of the first payment of temporary disability.

Generic Drugs and Supplies
Any person or entity dispensing medicines and medical supplies to inured workers to cure or relieve the effects of an injury under workers' compensation must dispense the generic drug or medical supply equivalent unless the prescribing physician provides otherwise in writing.

Apportionment
Impairment shall now be based upon the causation of the injury and all permanent disability reports prepared by physicians must consider what portion of the disability is work related.

Medical Provider Networks
Employers may establish or modify medical provider networks to treat injured workers on or after 1/1/05. If established the medical provider network will provide all medical care throughout the life of the work-related injury.