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News, data, & insights about workers' comp billing

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Timely Billing Coming to California

November 1, 2016 by Catherine Montgomery

When Senator Tony Mendoza’s California Senate Bill 1175 passed over Governor Brown’s desk this August, one word stood out: Timely, timely, timely.

Signed into law on August 26th, the bill consists of three sections, which amend three separate Labor Codes. Each section is concerned with timely bill submission.

SB 1175, Section 1

Amends Labor Code 4603. Effective January 1, 2017

  • Within 12 months of rendering a service, the provider must submit the bill for services.
  • Physicians, Hospitals, Pharmacies, interpreters, Copy Services, Transportation Services and Home Health Care Services are among the types of providers impacted by this Labor Code.
  • No payment is due for untimely bill submission.
  • This requirement does not apply to dates of service prior to January 1, 2017.

SB 1175, Section 2

Amends Labor Code 4603.4. Effective Immediately.
  • George Parisotto, the current acting Administrative Director of the Division of Workers’ Comp, is required to adopt timely filing rules and regulations.
  • This section clarifies that all employers must accept electronic billing, and that claims administrators must remit payment for original electronic bills within 15 working days of receipt.

SB 1175, Section 3

Amends Labor Code 4625. Effective January 1, 2017.
  • Like other bills, medical-legal evaluation and service bills must be submitted within 12 months from the date of service.
  • The Labor Code states that “bills for medical-legal charges are barred unless timely submitted.” There are no exceptions to this rule.
  • This requirement does not apply to dates of service prior to January 1, 2017.

For a comprehensive look at the timely filing requirements brought forth by this bill, watch our latest webinar. We cover SB 1175 before moving onto the California workers’ compensation reforms in another important bill – SB 1160.

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