On Wednesday, the Senate Pensions and Labor Committee heard testimony on HB 1153 (Worker’s Compensation), authored by Rep. Matt Lehman (R-Berne). This measure has been discussed for several years. The House version increased benefits for injuries and disablements by 2% each year for four years, beginning on July 1. The bill also adds an ambulatory outpatient surgical center (ASC) to the definition of ”medical service facility” under the workers’ compensation law. Including ASCs under that definition caps their reimbursement for workers’ comp at 200% of Medicare.
Part of the discussion centered around an analysis of House Bill 1153 conducted by the National Council on Compensation Insurance (NCCI). The analysis demonstrates that the impact would be -3.% to the overall workers’ comp system costs in Indiana once implemented. Based upon that impact, Sen. Rodney Pol (D-Chesterton) and labor organizations argued that the benefit increase of 2% could be raised to as much as a 6% benefit increase (may be supported by a subsequent NCCI analysis on benefits increase). Pol questioned the Chamber regarding this second analysis, which the Chamber had not had access to at the time of the hearing.
Senator Phil Boots (R-Crawfordsville) allowed discussion on two amendments. One would have increased the benefit side from 2% to 3%. That amendment passed 9-1. The other amendment, which put ASCs parallel to hospitals regarding reimbursement rate, was unsuccessful by a vote of 5-5.
The Chamber provided the committee with a historical context from 2013 on how the current reimbursement system for hospitals had been established and why it was important to include ASCs in the definition of a medical service facility. The Chamber supported the 3% increase to benefits and might consider more if the subsequent impact would not increase workers’ comp premiums to employers. The Insurance Institute provided an example of cost differential under Medicare, which was about twice as much for an episode of care between a hospital and an ASC. The Indiana Manufacturers Association expressed their concerns about rising costs specific to ASCs and supported the bill. The Indiana Hospital Association testified that the “not to exceed” language in the bill would bring back the adversarial relationship of provider and payor and supported the amendment that put ASCs in line with hospital reimbursement.
The bill passed committee 9-1 and will now be recommitted to the Senate Appropriations Committee.
Resource: Mike Ripley at (317) 264-6883 or email: mripley@indianachamber.com
