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Oklahoma Legislature· HB 4202Placed on General Order

An act relating to workers compensation, the official text

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1                       STATE OF OKLAHOMA

2   2nd Session of the 60th Legislature (2026)

3 HOUSE BILL 4202                By: Schreiber

4

5

6                               AS INTRODUCED

7   An Act relating to workers compensation; amending 85A

    O.S. 2021, Section 50, which relates to fee

8   schedules; modifying reimburse rate provision

    regarding magnetic resonance imaging; and providing

9   an effective date.

10

11

12 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

13  SECTION 1.       AMENDATORY  85A O.S. 2021, Section 50, is

14 amended to read as follows:

15  Section 50. A. The employer shall promptly provide an injured

16 employee with medical, surgical, hospital, optometric, podiatric,

17 chiropractic and nursing services, along with any medicine,

18 crutches, ambulatory devices, artificial limbs, eyeglasses, contact

19 lenses, hearing aids, and other apparatus as may be reasonably

20 necessary in connection with the injury received by the employee.

21 The employer shall have the right to choose the treating physician

22 or chiropractor.

23  B. If the employer fails or neglects to provide medical

24 treatment within five (5) days after actual knowledge is received of

    Req. No. 15192                                                 Page 1
1 an injury, the injured employee may select a physician or

2 chiropractor to provide medical treatment at the expense of the

3 employer; provided, however, that the injured employee, or another

4 in the employee's behalf, may obtain emergency treatment at the

5 expense of the employer where such emergency treatment is not

6 provided by the employer.

7   C. Diagnostic tests shall not be repeated sooner than six (6)

8 months from the date of the test unless agreed to by the parties or

9 ordered by the Commission for good cause shown.

10  D. Unless recommended by the treating doctor or chiropractor at

11 the time claimant reaches maximum medical improvement or by an

12 independent medical examiner, continuing medical maintenance shall

13 not be awarded by the Commission. The employer or insurance carrier

14 shall not be responsible for continuing medical maintenance or pain

15 management treatment that is outside the parameters established by

16 the Physician Advisory Committee or ODG. The employer or insurance

17 carrier shall not be responsible for continuing medical maintenance

18 or pain management treatment not previously ordered by the

19 Commission or approved in advance by the employer or insurance

20 carrier.

21  E. An employee claiming or entitled to benefits under the

22 Administrative Workers' Compensation Act, shall, if ordered by the

23 Commission or requested by the employer or insurance carrier, submit

24 himself or herself for medical examination. If an employee refuses

    Req. No. 15192                                                 Page 2
1 to submit himself or herself to examination, his or her right to

2 prosecute any proceeding under the Administrative Workers'

3 Compensation Act shall be suspended, and no compensation shall be

4 payable for the period of such refusal.

5   F. For compensable injuries resulting in the use of a medical

6 device, ongoing service for the medical device shall be provided in

7 situations including, but not limited to, medical device battery

8 replacement, ongoing medication refills related to the medical

9 device, medical device repair, or medical device replacement.

10  G. The employer shall reimburse the employee for the actual

11 mileage in excess of twenty (20) miles round trip to and from the

12 employee's home to the location of a medical service provider for

13 all reasonable and necessary treatment, for an evaluation of an

14 independent medical examiner and for any evaluation made at the

15 request of the employer or insurance carrier. The rate of

16 reimbursement for such travel expense shall be the official

17 reimbursement rate as established by the State Travel Reimbursement

18 Act. In no event shall the reimbursement of travel for medical

19 treatment or evaluation exceed six hundred (600) miles round trip.

20  H. Fee Schedule.

21  1. The Commission shall conduct a review and update of the

22 Current Procedural Terminology (CPT) in the Fee Schedule every two

23 (2) years pursuant to the provisions of paragraph 14 of this

24 subsection. The Fee Schedule shall establish the maximum rates that

    Req. No. 15192                                                  Page 3
1 medical providers shall be reimbursed for medical care provided to

2 injured employees including, but not limited to, charges by

3 physicians, chiropractors, dentists, counselors, hospitals,

4 ambulatory and outpatient facilities, clinical laboratory services,

5 diagnostic testing services, and ambulance services, and charges for

6 durable medical equipment, prosthetics, orthotics, and supplies.

7 The most current Fee Schedule established by the Administrator of

8 the Workers' Compensation Court prior to February 1, 2014, shall

9 remain in effect, unless or until the Legislature approves the

10 Commission's proposed Fee Schedule.

11  2. Reimbursement for medical care shall be prescribed and

12 limited by the Fee Schedule. The director of the Employees Group

13 Insurance Division of the Office of Management and Enterprise

14 Services shall provide the Commission such information as may be

15 relevant for the development of the Fee Schedule. The Commission

16 shall develop the Fee Schedule in a manner in which quality of

17 medical care is assured and maintained for injured employees. The

18 Commission shall give due consideration to additional requirements

19 for physicians treating an injured worker under the Administrative

20 Workers' Compensation Act, including, but not limited to,

21 communication with claims representatives, case managers, attorneys,

22 and representatives of employers, and the additional time required

23 to complete forms for the Commission, insurance carriers, and

24 employers.

    Req. No. 15192                                                 Page 4
1   3. In making adjustments to the Fee Schedule, the Commission

2 shall use, as a benchmark, the reimbursement rate for each Current

3 Procedural Terminology (CPT) code provided for in the fee schedule

4 published by the Centers for Medicare and Medicaid Services of the

5 U.S. Department of Health and Human Services for use in Oklahoma

6 (Medicare Fee Schedule) on the effective date of this section,

7 workers' compensation fee schedules employed by neighboring states,

8 the latest edition of "Relative Values for Physicians" (RVP), usual,

9 customary and reasonable medical payments to workers' compensation

10 health care providers in the same trade area for comparable

11 treatment of a person with similar injuries, and all other data the

12 Commission deems relevant. For services not valued by CMS, the

13 Commission shall establish values based on the usual, customary and

14 reasonable medical payments to health care providers in the same

15 trade area for comparable treatment of a person with similar

16 injuries.

17  a. No reimbursement shall be allowed for any magnetic

18            resonance imaging (MRI) unless the MRI is provided by

19            an entity that meets Medicare requirements for the

20            payment of MRI services or is accredited by the

21            American College of Radiology, the Intersocietal

22            Accreditation Commission or the Joint Commission on

23            Accreditation of Healthcare Organizations. For all

24            other radiology procedures, the reimbursement rate

    Req. No. 15192                                                 Page 5
1   shall be the lesser of the reimbursement rate allowed

2   by the 2010 Oklahoma Fee Schedule and two hundred

3   seven percent (207%) of the Medicare Fee Schedule.

4   b. For reimbursement of medical services for Evaluation

5   and Management of injured employees as defined in the

6   Fee Schedule adopted by the Commission, the

7   reimbursement rate shall not be less than one hundred

8   fifty percent (150%) of the Medicare Fee Schedule.

9   c. Any entity providing durable medical equipment,

10  prosthetics, orthotics or supplies shall be accredited

11  by a CMS-approved accreditation organization. If a

12  physician provides durable medical equipment,

13  prosthetics, orthotics, prescription drugs, or

14  supplies to a patient ancillary to the patient's

15  visit, reimbursement shall be no more than ten percent

16  (10%) above cost.

17  d. The Commission shall develop a reasonable stop-loss

18  provision of the Fee Schedule to provide for adequate

19  reimbursement for treatment for major burns, severe

20  head and neurological injuries, multiple system

21  injuries, and other catastrophic injuries requiring

22  extended periods of intensive care. An employer or

23  insurance carrier shall have the right to audit the

24  charges and question the reasonableness and necessity

    Req. No. 15192                                      Page 6
1   of medical treatment contained in a bill for treatment

2   covered by the stop-loss provision.

3   4. The right to recover charges for every type of medical care

4 for injuries arising out of and in the course of covered employment

5 as defined in the Administrative Workers' Compensation Act shall lie

6 solely with the Commission. When a medical care provider has

7 brought a claim to the Commission to obtain payment for services, a

8 party who prevails in full on the claim shall be entitled to

9 reasonable attorney fees.

10  5. Nothing in this section shall prevent an employer, insurance

11 carrier, group self-insurance association, or certified workplace

12 medical plan from contracting with a provider of medical care for a

13 reimbursement rate that is greater than or less than limits

14 established by the Fee Schedule.

15  6. A treating physician may not charge more than Four Hundred

16 Dollars ($400.00) per hour for preparation for or testimony at a

17 deposition or appearance before the Commission in connection with a

18 claim covered by the Administrative Workers' Compensation Act.

19  7. The Commission's review of medical and treatment charges

20 pursuant to this section shall be conducted pursuant to the Fee

21 Schedule in existence at the time the medical care or treatment was

22 provided. The judgment approving the medical and treatment charges

23 pursuant to this section shall be enforceable by the Commission in

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    Req. No. 15192                                                  Page 7
1 the same manner as provided in the Administrative Workers'

2 Compensation Act for the enforcement of other compensation payments.

3   8. Charges for prescription drugs dispensed by a pharmacy shall

4 be limited to ninety percent (90%) of the average wholesale price of

5 the prescription, plus a dispensing fee of Five Dollars ($5.00) per

6 prescription. "Average wholesale price" means the amount determined

7 from the latest publication designated by the Commission.

8 Physicians shall prescribe and pharmacies shall dispense generic

9 equivalent drugs when available. If the National Drug Code, or

10 "NDC", for the drug product dispensed is for a repackaged drug, then

11 the maximum reimbursement shall be the lesser of the original

12 labeler's NDC and the lowest-cost therapeutic equivalent drug

13 product. Compounded medications shall be billed by the compounding

14 pharmacy at the ingredient level, with each ingredient identified

15 using the applicable NDC of the drug product, and the corresponding

16 quantity. Ingredients with no NDC area are not separately

17 reimbursable. Payment shall be based on a sum of the allowable fee

18 for each ingredient plus a dispensing fee of Five Dollars ($5.00)

19 per prescription.

20  9. When medical care includes prescription drugs dispensed by a

21 physician or other medical care provider and the NDC for the drug

22 product dispensed is for a repackaged drug, then the maximum

23 reimbursement shall be the lesser of the original labeler's NDC and

24 the lowest-cost therapeutic equivalent drug product. Payment shall

    Req. No. 15192                                                Page 8
1 be based upon a sum of the allowable fee for each ingredient plus a

2 dispensing fee of Five Dollars ($5.00) per prescription. Compounded

3 medications shall be billed by the compounding pharmacy.

4   10. Implantables are paid in addition to procedural

5 reimbursement paid for medical or surgical services. A

6 manufacturer's invoice for the actual cost to a physician, hospital

7 or other entity of an implantable device shall be adjusted by the

8 physician, hospital or other entity to reflect, at the time

9 implanted, all applicable discounts, rebates, considerations and

10 product replacement programs and shall be provided to the payer by

11 the physician or hospital as a condition of payment for the

12 implantable device. If the physician, or an entity in which the

13 physician has a financial interest other than an ownership interest

14 of less than five percent (5%) in a publically traded company,

15 provides implantable devices, this relationship shall be disclosed

16 to patient, employer, insurance company, third-party commission,

17 certified workplace medical plan, case managers, and attorneys

18 representing claimant and defendant. If the physician, or an entity

19 in which the physician has a financial interest other than an

20 ownership interest of less than five percent (5%) in a publicly

21 traded company, buys and resells implantable devices to a hospital

22 or another physician, the markup shall be limited to ten percent

23 (10%) above cost.

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    Req. No. 15192                                                  Page 9
1   11. Payment for medical care as required by the Administrative

2 Workers' Compensation Act shall be due within forty-five (45) days

3 of the receipt by the employer or insurance carrier of a complete

4 and accurate invoice, unless the employer or insurance carrier has a

5 good-faith reason to request additional information about such

6 invoice. Thereafter, the Commission may assess a penalty up to

7 twenty-five percent (25%) for any amount due under the Fee Schedule

8 that remains unpaid on the finding by the Commission that no good-

9 faith reason existed for the delay in payment. If the Commission

10 finds a pattern of an employer or insurance carrier willfully and

11 knowingly delaying payments for medical care, the Commission may

12 assess a civil penalty of not more than Five Thousand Dollars

13 ($5,000.00) per occurrence.

14  12. If an employee fails to appear for a scheduled appointment

15 with a physician or chiropractor, the employer or insurance company

16 shall pay to the physician or chiropractor a reasonable charge, to

17 be determined by the Commission, for the missed appointment. In the

18 absence of a good-faith reason for missing the appointment, the

19 Commission shall order the employee to reimburse the employer or

20 insurance company for the charge.

21  13. Physicians or chiropractors providing treatment under the

22 Administrative Workers' Compensation Act shall disclose under

23 penalty of perjury to the Commission, on a form prescribed by the

24 Commission, any ownership or interest in any health care facility,

    Req. No. 15192                                                Page 10
1 business, or diagnostic center that is not the physician's or

2 chiropractor's primary place of business. The disclosure shall

3 include any employee leasing arrangement between the physician or

4 chiropractor and any health care facility that is not the

5 physician's or chiropractor's primary place of business. A

6 physician's or chiropractor's failure to disclose as required by

7 this section shall be grounds for the Commission to disqualify the

8 physician or chiropractor from providing treatment under the

9 Administrative Workers' Compensation Act.

10  14. a. Beginning on May 28, 2019, the Commission shall

11  conduct an evaluation of the Fee Schedule, which shall

12  include an update of the list of Current Procedural

13  Terminology (CPT) codes, a line item adjustment or

14  renewal of all rates, and amendment as needed to the

15  rules applicable to the Fee Schedule.

16  b. The Commission shall contract with an external

17  consultant with knowledge of workers' compensation fee

18  schedules to review regional and nationwide

19  comparisons of Oklahoma's Fee Schedule rates and date

20  and market for medical services. The consultant shall

21  receive written and oral comment from employers,

22  workers' compensation medical service and insurance

23  providers, self-insureds, group self-insurance

24  associations of this state and the public. The

    Req. No. 15192                                               Page 11
1   consultant shall submit a report of its findings and a

2   proposed amended Fee Schedule to the Commission.

3   c. The Commission shall adopt the proposed amended Fee

4   Schedule in whole or in part and make any additional

5   updates or adjustments. The Commission shall submit a

6   proposed updated and adjusted Fee Schedule to the

7   President Pro Tempore of the Senate, the Speaker of

8   the House of Representatives and the Governor. The

9   proposed Fee Schedule shall become effective on July 1

10  following the legislative session, if approved by

11  Joint Resolution of the Legislature during the session

12  in which a proposed Fee Schedule is submitted.

13  d. Beginning on May 28, 2019, an external evaluation

14  shall be conducted and a proposed amended Fee Schedule

15  shall be submitted to the Legislature for approval

16  during the 2020 legislative session. Thereafter, an

17  external evaluation shall be conducted and a proposed

18  amended Fee Schedule shall be submitted to the

19  Legislature for approval every two (2) years.

20  I. Formulary. The Commission by rule shall adopt a closed

21 formulary. Rules adopted by the Commission shall allow an appeals

22 process for claims in which a treating doctor determines and

23 documents that a drug not included in the formulary is necessary to

24 treat an injured employee's compensable injury. The Commission by

    Req. No. 15192                                               Page 12
1 rule shall require the use of generic pharmaceutical medications and

2 clinically appropriate over-the-counter alternatives to prescription

3 medications unless otherwise specified by the prescribing doctor, in

4 accordance with applicable state law.

5   SECTION 2. This act shall become effective November 1, 2026.

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7   60-2-15192      TKR  01/07/26

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    Req. No. 15192                       Page 13
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