FROM: Michael J. Webb, MD

RE: Three Member Panel Decision of April 23, 2002 Regarding Updated Workers' Compensation HealthCare Provider Fee for Service Manual

The following features are highlights of the decisions made by the Three Member Panel:

1. The 2002 procedure codes and Medicare relative value units will be used.

2. The conversion factor for 100% of 2002 Medicare will be used (which is 36.1992).

3. The allowable increases in non-surgical codes will be no higher than 8%. Therefore, some E&M and other office codes will increase as much as 8%. There will be no decreases.

4. There will be no decreases or increases in surgical CPT codes.

5. Some physical therapy codes, including work conditioning, functional capacity assessment and soft tissue immobilization will be increased by 3.4%.

6. For injections codes, all the current fees will be increased by 3.4%.

The new fee schedule is expected to be published on the Internet by May 15. Following various notice requirement intervals and other mechanics of publication, it is anticipated that the new fee schedule will be distributed by the end of August, 2002.

On a different topic, a bill was passed in the 2002 Legislative Session which included language sponsored by the Florida Medical Association which adds additional responsibilities to the Three Member Panel, in addition to establishing the uniforms code on Maximum Reimbursement Allowance (MRA). These duties would include taking testimony and collecting data to evaluate the adequacy of the Workers' Compensation Fee Schedule, nationally recognized fee schedules on alternative methods reimbursement to certify healthcare provides and healthcare facilities for inpatient/outpatient treatment and care; survey certifying healthcare providers and healthcare facilities to determine and availability and accessibility of Workers' Compensation healthcare delivery systems for injured workers; survey carriers to determine an estimated impact on carrier costs and Workers' Compensation premium rates by implementing changes to the carrier reimbursement schedule for implementing alternative reimbursement methods. Recommendations shall be submitted on or before January 1, 2003 and biannually thereafter to the President and Senate and Speaker of the House of Representative on methods to improve Workers' Compensation HealthCare

Delivery System. The Three Member Panel voted to comply with these

additional duties, even in the event that the bill is not signed by the Governor (he is expected to sign).

3mp decision.0426