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Committee advances SB 190 to give Labor Commission authority over hospital fees in workers' comp
Summary
SB 190 would let the Utah Labor Commission establish a hospital fee schedule for workers' compensation cases; sponsors said the change aims to lower system costs and stabilize employer premiums, while hospitals warned of payment reduction, market disruption and access risks.
The committee heard extended testimony on Senate Bill 190, a workers' compensation bill that would authorize the Utah Labor Commission to set a fee schedule for hospitals in workers' compensation cases.
Sponsor Senator Sandle said the bill responds to long-standing concerns that hospital fees in Utah's workers' compensation system are higher than regional and national comparators. Ryan Andres of WCF Insurance, appearing as counsel for WCF Insurance, told the panel that data from the National Council on Compensation Insurance shows Utah paying more for inpatient and outpatient hospital services than many comparators and that a commission-set fee schedule tied to Medicare-based benchmarks could reduce costs.
Labor Commissioner Jason Mon testified that the Workers' Compensation Advisory Council studied hospital fees and voted unanimously to support giving the Labor Commission authority to set hospital fees; he said a committee would be established and the hospital association would have representation on it.
The Utah Hospital Association opposed the bill. Dave Gessel, testifying for the association, warned the proposed change would allow non-health care decisionmakers to set hospital rates, cut payments to rural hospitals and possibly create access problems for injured workers. He urged additional language to ensure savings are passed to ratepayers, and argued the bill could import government price-setting into private-market contracts.
Retail and employer representatives, and injured-worker advocates, also testified. Dave Davis of the Utah Retail Merchants Association said the advisory council has historically set physician rates in the top quartile of private carriers to account for work-comp complexity; injured-worker representatives urged that hospital reimbursement remain adequate to preserve access.
After public testimony, the committee moved to favorably recommend the amended Senate Bill 190 to the full body. The transcript records the committee adopting a sponsor amendment and then moving the amended bill; committee members and witnesses debated possible approaches to using Medicare as a baseline and whether and how to require pass-through of savings to employers.
