Absent this legislation, the current HCO's would have soon received a bill for the entire amount. Instead of paying it, they would have turned back their certificates and effectively killed the HCO program. This legislation removes the uncertainty over the loan and provides for repayment in an equitable manner. This program was one of the initiatives of the 1993 reforms of the state's workers' compensation system, Young said. Under it, HMOs, licensed disability insurers and other qualified health care providers can apply for certification as an HCO, which can then offer a medical care plan to the employers or insurers.
Employees decide whether to enroll in the plans offered.
The goal is to help participating employers take advantage of managed care techniques to lower their workers' compensation costs, while ensuring that injured employees who have enrolled receive quality medical care from a certified health organization. To date, ten applicants have been certified, including several of the largest medical service providers in the state, and several other applications are currently being reviewed. This will complement another bill, SB 1063, signed last year which removed another impediment to this program.