October 2006

California WC reform reduces DC utilization

Use of chiropractic services for workers compensation cases in California has dropped 77 percent following the enactment of SB 228 reforms that went into effect in 2004. That bill limited chiropractic and physical therapy utilization to 24 visits each.

Utilization was reported in the “2006 Legislative Cost Monitoring Report” issued by the Workers Compensation Insurance Rating Bureau (WCIRB) of California at the direction of the California Department of Insurance (CDI). The report was issued Oct. 3.

The report stated, “CWCI estimates a reduction in physical therapy visits per claim of approximately 61 percent and a reduction in chiropractic visits per claim of approximately 77 percent from 2003 to 2005. … It is not clear the extent to which these shifts in physical medicine utilization patterns are attributable to the SB 228 visit limitations as compared to other reform provisions impacting the utilization of medical services — including the adoption of utilization guidelines and the creation of medical utilization networks.”

Workers comp reforms began in 2002. In 2004, the CDI directed the WCIRB to monitor the impact of this legislation on emerging system costs. The 253-page 2006 report is available for review or downloading at https://wcirbonline.org/.

Sources: Workers Compensation Insurance Rating Bureau, https://wcirbonline.org; Insurance Journal, www.insurancejournal.com

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