DWD 80.72(3)(a)6. 6. The amount of the fee that is in dispute beyond the formula amount;
DWD 80.72(3)(a)7. 7. The provider's obligation under par. (c), if the fee is beyond the formula amount, to provide the insurer or self-insurer with a written justification for the higher fee, at least 20 days prior to submitting the dispute to the department. The notice must clearly explain that the only justification for a fee more than the formula amount is that the service provided in this particular case is more difficult or more complicated than in the usual case; and
DWD 80.72(3)(a)8. 8. The insurer's or self-insurer's obligation under par. (d) to respond within 15 days of receiving the provider's written justification for charging a fee beyond the formula amount.
DWD 80.72(3)(a)9. 9. That pursuant to s. 102.16 (2) (b), Stats., once the notice required by this subsection is received by a provider, a health service provider may not collect the disputed fee from, or bring an action for collection of the disputed fee against, the employee who received the services for which the fee was charged.
DWD 80.72(3)(b) (b) If the provider and the insurer or self-insurer agree on the facts in sub. (3) (a) 1. to 6., the provider may submit the dispute to the department at any time. If the provider believes there is a factual error in the notice provided by the insurer or self-insurer, it must raise the issue as provided in par. (c).
DWD 80.72(3)(c) (c) If, after receiving notice from the insurer or self-insurer, the provider believes a fee beyond the formula amount is justified, or if it does not agree with the factual information provided in the notice under par. (a), then, at least 20 days prior to submitting a dispute to the department, the provider must submit a written justification to the insurer or self-insurer noting the factual error or explaining the extent to which the service provided in the disputed case was more difficult or more complicated than in the usual case, or both.
DWD 80.72(3)(d) (d) If the provider submits a written justification under par. (c), the insurer or self-insurer has 15 days after receiving the notice to notify the provider that it accepts the provider's explanation or to explain its continuing refusal to pay the fee. If the insurer or self-insurer accepts the provider's justification, the fee must be paid in full, or in an amount mutually agreed to by the provider and insurer or self-insurer, within 30 days from the date the insurer or self-insurer received written justification under par. (c).
DWD 80.72(3)(e) (e) If only a portion of the fee is in dispute, the insurer or self-insurer shall, within the 30-day notice period specified in par. (a), pay the remainder of the fee which is not in dispute.
DWD 80.72(4) (4) Submitting disputed fees.
DWD 80.72(4)(a)(a) For the department to determine whether or not a fee is reasonable under s. 102.16 (2), Stats., a provider shall file a written request to the department to resolve the dispute within 6 months after an insurer or self-insurer first refuses to pay as provided in sub. (3) (a), and provide a copy of the request and all attachments to the insurer or self-insured employer.
DWD 80.72(4)(b) (b) A request by a provider shall include copies of all correspondence in its possession related to the fee dispute.
DWD 80.72(4)(c) (c) The department shall notify the insurer or self-insurer when a request to settle the dispute is submitted that the insurer or self-insurer has 20 days to file an answer or a default judgment will be ordered.
DWD 80.72(4)(d) (d) The insurer or self-insurer shall file an answer with the department, and send a copy to the provider, within 20 days from the date of the department's notice of dispute. The answer shall include:
DWD 80.72(4)(d)1. 1. Copies of any prior correspondence relating to the fee dispute which the provider has not already filed.
DWD 80.72(4)(d)2. 2. Information from a certified data base on fees charged by other providers for comparable services or procedures which clearly demonstrates that the fee in dispute is beyond the formula amount for the service or procedure.
DWD 80.72(4)(d)3. 3. An explanation of why the service provided in the disputed case is not more difficult or complicated than in the usual case.
DWD 80.72(4)(e) (e) The department shall examine the material submitted by all parties and issue its order resolving the dispute within 90 days after receiving the material submitted under par. (d). The department shall send a copy of the order to the provider, the insurer or self-insurer and the employee. If the fee dispute involves a claim for which an application for hearing is filed under s. 102.17, Stats., or an injury for which the insurer or self-insurer disputes the cause of the injury, the extent of disability, or other issues which could result in an application for hearing being filed, the department may delay resolution of the fee dispute until a hearing is held or an order is issued resolving the dispute between the injured employee and the insurer or self-insurer.
DWD 80.72(4)(f) (f) The department may develop and require the use of forms to facilitate the exchange of information.
DWD 80.72(5) (5) Department initiative. The department may initiate resolution of a fee dispute when requested to do so by an injured worker, an insurer or a self-insurer. The department shall direct the parties to follow the process provided for in subs. (3) and (4), except where the department specifically determines that extraordinary circumstances justify some modification to expedite or facilitate a fair resolution of the dispute.
DWD 80.72(6) (6) Interest on late payment.
DWD 80.72(6)(a) (a) Except as provided in par. (b), in addition to any amount paid or awarded in a fee dispute, where an insurer or self-insurer fails to respond as required in subs. (3) and (4) or as directed under sub. (5), the insurer or self-insurer shall pay simple interest on the payment or award to the provider at an annual rate of 12%, to be computed by the insurer or self-insurer, from the date that the insurer or self-insurer first missed a deadline for response, to the date of actual payment to the provider.
DWD 80.72(6)(b) (b) If the insurer or self-insurer notifies the provider within 30 days of receiving a completed bill under sub. (3) (a), that it needs additional documentation from the provider regarding the bill or treatment, the insurer or self-insurer shall have 30 days from the date it receives the provider's response to this request for additional documentation to comply with the notice requirement in sub. (3) (a). Examples of additional documentation include requests for a narrative description of services provided or medical reports.
DWD 80.72(6)(c) (c) For the purpose of calculating the extent to which any claim is overdue, the date of actual payment is the date on which a draft or other valid instrument which is equivalent to payment is postmarked in the U.S. mail in a properly addressed, postpaid envelope, or, if not so posted, on the date of delivery.
DWD 80.72(7) (7) Certification of data bases.
DWD 80.72(7)(a)(a) Before the department may certify a data base under s. 102.16 (2), Stats., and sub. (8), it shall determine that all of the following apply:
DWD 80.72(7)(a)1. 1. The fees in the data base accurately reflect the amounts charged by providers for procedures rather than the amounts paid to or collected by providers, and do not include any medicare charges.
DWD 80.72(7)(a)2. 2. The information in the data base is compiled and sorted by CPT code, ICD-9-CM code, ADA code, DRG code or other similar coding accepted by the department.
DWD 80.72(7)(a)3. 3. The information in the data base is compiled and sorted into economically similar regions within the state, with the fee based on the location at which the service was provided.
DWD 80.72(7)(a)4. 4. The information in the data base can be presented in a way which clearly indicates the formula amount for each procedure.
DWD 80.72(7)(a)5. 5. The applicant authorizes and assists the department to audit or investigate the accuracy of any statements made in the application for certification by any reasonable method including, if the applicant did not collect or compile the data itself, providing a means for the department to audit or investigate the process used by the person who collected or compiled the data.
DWD 80.72(7)(a)6. 6. The information in the data base is up-dated and published or distributed by other methods at least every 6 months.
DWD 80.72(7)(b) (b) Before the department may certify a data base under s. 102.16 (2), Stats., it shall consider all of the following:
DWD 80.72(7)(b)1. 1. The coverage of the data base, including the number of CPT codes, ICD-9-CM codes or DRGs for which there are data; the number of data entries for each code or DRG; the number of different providers contributing to a code or DRG entry; and the extent to which reliable data exist for injuries most commonly associated with worker's compensation claims;
DWD 80.72(7)(b)2. 2. The sources from which the data are collected, including the number of different providers, insurers or self-insurers;
DWD 80.72(7)(b)3. 3. The age of the data, and the frequency of the updates in the data;
DWD 80.72(7)(b)4. 4. The method by which the data are compiled, including the method by which mistakes in charges are identified and corrected prior to entry and the extent to which this occurs; and the conditions under which charges reported to the applicant may be excluded and the extent to which this occurs;
DWD 80.72(7)(b)5. 5. The extent to which the data are representative of the entire geographic area for which certification is sought;
DWD 80.72(7)(b)6. 6. The length of time the applicant has been in business and doing business in Wisconsin;
DWD 80.72(7)(b)7. 7. The length of time the data base has been in existence;
DWD 80.72(7)(b)8. 8. Whether the data base has been certified by any organization or government agency.
DWD 80.72(8) (8) Application for certification; decertification.
DWD 80.72(8)(a) (a) To obtain certification from the department, an applicant shall submit a complete description of the items covered in sub. (7) to the department. The department may require the submission of other information which it deems relevant.
DWD 80.72(8)(b) (b) The applicant shall clearly identify any trade secrets under s. 19.36 (5), Stats. The department shall treat any information marked as trade secrets as confidential and shall use it solely for the purpose of certification and shall take appropriate steps to prevent its release.
DWD 80.72(8)(c) (c) Notwithstanding par. (b), the department may create a technical advisory group consisting of individuals with special expertise from both the public and private sectors to assist the department in reviewing and evaluating an application.
DWD 80.72(8)(d) (d) The department shall certify a data base for one year at a time. The department may extend the one-year certification period while an application for renewal is under review by the department.
DWD 80.72(8)(e) (e) If the department determines that an applicant has misrepresented a material fact in its application or that it no longer meets the requirements in sub. (7), the department may decertify a data base after providing the applicant with notice of the basis for decertification and an opportunity to respond.
DWD 80.72(9) (9) Applicability. This section first applies to health service procedures provided on July 1, 1992 and shall take effect on July 1, 1992.
DWD 80.72 History History: Cr. Register, June, 1992, No. 438, eff. 7-1-92; CR 03-125: am. (3) (a) (intro.) Register June 2004 No. 582, eff. 7-1-04; CR 07-019: am. (2) (i) and (L), Register October 2007 No. 622, eff. 11-1-07.
DWD 80.73 DWD 80.73Health service necessity of treatment dispute resolution process.
DWD 80.73(1)(1)Purpose. The purpose of this section is to establish the procedures and requirements for resolving a dispute under s. 102.16 (2m), Stats., between a health service provider and an insurer or self-insurer over the necessity of treatment rendered by a provider to an injured worker.
DWD 80.73(2) (2) Definitions. In this section:
DWD 80.73(2)(a) (a) “Dispute" means a disagreement between a provider and an insurer or self-insurer over the necessity of treatment rendered to an injured worker where the insurer or self-insurer refuses to pay part or all of the provider's bill.
DWD 80.73(2)(b) (b) “Expert" means a person licensed to practice in the same health care profession as the individual health service provider whose treatment is under review, and who provides an opinion on the necessity of treatment rendered to an injured worker for an impartial health care services review organization or as a member of an independent panel established by the department.
DWD 80.73(2)(c) (c) “Licensed to practice in the same health care profession" means licensed to practice as a physician, psychologist, chiropractor, podiatrist or dentist.
DWD 80.73(2)(d) (d) “Provider" includes a hospital, physician, psychologist, chiropractor, podiatrist, physician's assistant, advanced practice nurse prescriber, or dentist, or another licensed medical practitioner who provides treatment ordered by a physician, psychologist, chiropractor, podiatrist, physician's assistant, advanced practice nurse prescriber, or dentist whose order of treatment is subject to review.
DWD 80.73(2)(e) (e) “Review organization" or “impartial health care services review organization” means a public or private entity not owned or operated by, or regularly doing medical reviews for, any insurer, self-insurer, or provider, and which, for a fee, can provide expert opinions regarding the necessity of treatment provided to an injured worker.
DWD 80.73(2)(f) (f) “Self-insurer" means an employer who has been granted an exemption from the duty to insure under s. 102.28 (2), Stats.
DWD 80.73(2)(g) (g) “Treatment" means any procedure intended to cure and relieve an injured worker from the effects of an injury under s. 102.42, Stats.
DWD 80.73(3) (3) Notice to the provider.
DWD 80.73(3)(a)(a) In a case where liability or the extent of liability is in dispute, an insurer or self-insured employer shall provide written notice of the dispute to the health care provider within 60 days after receiving a bill that documents the treatment provided to the worker, unless there is good cause for delay in providing notice. An insurer or self-insurer which refuses to pay for treatment rendered to an injured worker because it disputes that the treatment is necessary shall, in a case where liability or the extent of liability is not an issue, give the provider written notice within 60 days of receiving a bill which documents the treatment provided to the worker. The notice shall specify all of the following:
DWD 80.73(3)(a)1. 1. The name of the patient employee.
DWD 80.73(3)(a)2. 2. The name of the employer on the date of injury.
DWD 80.73(3)(a)3. 3. The date of the treatment in dispute.
DWD 80.73(3)(a)4. 4. The amount charged for the treatment and the amount in dispute.
DWD 80.73(3)(a)5. 5. The reason that the insurer or self-insurer believes the treatment was unnecessary, including the organization and credentials of any person who provides supporting medical documentation and a copy of the supporting medical documentation from that person.
DWD 80.73(3)(a)6. 6. The provider's right to initiate an independent review by the department within 9 months under sub. (6), including a description of how costs will be assessed under sub. (8).
DWD 80.73(3)(a)7. 7. The address to use in directing correspondence to the insurer or self-insurer regarding the dispute.
DWD 80.73(3)(a)8. 8. That pursuant to s. 102.16 (2m) (b), Stats., once the notice required by this subsection is received by a provider, the provider may not collect a fee for the disputed treatment from, or bring an action for collection of the fee for that disputed treatment against, the employee who received the treatment.
DWD 80.73(3)(b) (b) At the request of an insurer or self-insurer, the department may extend the 60-day period in par. (a) where the insurer or self-insurer is unable to obtain the supporting medical documentation within the 60-day period, or where the department determines other extraordinary circumstances justify an extension.
DWD 80.73(3)(c) (c) Except as provided in par. (b), if an insurer or self-insurer provides the notice after the 60-day period, the provider may immediately request the department to issue a default order requiring the insurer or self-insurer to pay the full amount in dispute.
DWD 80.73(4) (4) Notice to the insurer or self-insurer. After receiving notice from the insurer or self-insurer under sub. (3) and, except as provided in sub. (3) (b) and (c), at least 30 days prior to submitting a dispute to the department, the provider shall explain to the insurer or self-insurer in writing why the treatment was necessary to cure and relieve the effects of the injury, including a diagnosis of the condition for which treatment was provided.
DWD 80.73(5) (5) Response by the insurer or self-insurer.
DWD 80.73(5)(a) (a) Within 30 days from the date on which the provider sent or delivered notice under sub. (4), an insurer or self-insurer shall notify the provider whether or not it accepts the provider's explanation regarding necessity of treatment.
DWD 80.73(5)(b) (b) If the insurer or self-insurer accepts the provider's explanation, the provider's fee must be paid in full, or in an amount mutually agreed to by the provider and insurer or self-insurer, within the 30-day period specified in par. (a). In the case of late payment, the insurer or self-insurer shall pay simple interest on the amount mutually agreed upon at the annual rate of 12 percent, from the day after the 30-day period lapses to the date of actual payment to the provider.
DWD 80.73(6) (6) Submitting disputes to the department.
DWD 80.73(6)(a) (a) For the department to determine whether or not treatment was necessary under s. 102.16 (2m), Stats., a provider shall, after the 30-day notice period in sub. (4) has elapsed, apply to the department in writing to resolve the dispute. The provider shall apply to the department within 9 months from the date it receives notice under sub. (3) from the insurer or self-insurer refusing to pay the provider's bill.
DWD 80.73(6)(b) (b) The provider's application to the department shall include copies of all correspondence related to the dispute.
DWD 80.73(6)(c) (c) At the time it files the application with the department, the provider shall send or deliver to the insurer or self-insurer which is refusing to pay for the treatment in dispute a copy of all materials submitted to the department.
DWD 80.73(6)(d) (d) When an application to resolve a dispute is submitted, the department shall notify the insurer or self-insurer that it has 20 days to either pay the bill in full for the treatment in dispute or to file an answer under par. (e) for the department to use in the review process in sub. (7).
DWD 80.73(6)(e) (e) The answer shall include copies of any prior correspondence relating to the dispute which the provider has not already filed, and any other material which responds to the provider's application. The answer shall include the name of the organization, and credentials of any individual, whose review of the case has been relied upon in reaching the decision to deny payment.
DWD 80.73(6)(f) (f) The department may develop and require the use of forms to facilitate the exchange of information.
DWD 80.73 Note Note: To obtain a form under par. (f), contact the Department of Workforce Development, Worker's Compensation Division, 201 East Washington Avenue, P.O. Box 7901, Madison, Wisconsin 53707 or access the form online at http://dwd.wisconsin.gov.
DWD 80.73(7) (7) Review process.
DWD 80.73(7)(a)(a) After the 20-day period in sub. (6) (d) for the insurer or self-insurer to answer has passed, the department shall provide a copy of all materials in its possession relating to a dispute to an impartial health care services review organization, or to an expert from a panel of experts established by the department, to obtain an expert written opinion on the necessity of treatment in dispute.
DWD 80.73(7)(b) (b) In all cases where the dispute involves a Wisconsin provider, the expert reviewer shall be licensed to practice in Wisconsin.
DWD 80.73(7)(c) (c) When necessary to provide a fair and informed decision, the expert may contact the provider, insurer or self-insurer for clarification of issues raised in the written materials. Where the contact is in writing, the expert shall provide all parties to the dispute with a copy of the request for clarification and a copy of any responses received. Where the contact is by phone, the expert shall arrange a conference call giving all parties an opportunity to participate simultaneously.
DWD 80.73(7)(d) (d) Within 90 days of receiving the material from the department under par. (a), the review organization or panel shall provide the department with the expert's written opinion regarding the necessity of treatment, including a recommendation regarding how much of the provider's bill the insurer or self-insurer should pay, if any. At the same time that it provides an opinion to the department, the review organization or panel on which the expert serves shall send a copy of the opinion to the provider and the insurer or self-insurer which are parties to the dispute.
DWD 80.73(7)(e) (e) The provider, insurer or self-insurer shall have 30 days from the date the expert's opinion is received by the department under par. (d) to present written evidence to the department that the expert's opinion is in error. Unless the department receives clear and convincing written evidence that the opinion is in error, the department shall adopt the written opinion of the expert as the department's determination on the issues covered in the written opinion.
DWD 80.73(7)(f) (f) If the necessity of treatment dispute involves a claim for which an application for hearing is filed under s. 102.17, Stats., or an injury for which the insurer or self-insurer disputes the cause of the injury, the extent of the disability, or other issues which could result in an application for hearing being filed, the department may delay resolution of the necessity of treatment dispute until a hearing is held or an order is issued resolving the dispute between the injured employee and the insurer or self-insurer.
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Published under s. 35.93, Stats. Updated on the first day of each month. Entire code is always current. The Register date on each page is the date the chapter was last published.