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Senate Committee OKs Rate Regulation For Doctor Network Standards

A state Senate committee has approved legislation that would regulate workers´ compensation insurance rates and set standards for workers´ comp doctor networks.

The Labor and Industrial Relations Committee action could set the stage for a confrontation with Governor Schwarzenegger, who opposes rate regulation. The Labor and Industrial Relations voted 5 to 3 for a bill by Senator Richard Alarcon of Van Nuns that would set up a commission composed of the governor, attorney general and insurance commissioner, to set a range of acceptable workers´ comp insurance rates. The committee also approved a bill that would set standards for the medical provider networks that last year´s workers´ comp legislation allowed employers to set up- to treat workers with job-related injuries.