Law allows private self-insureds to direct care

Arizona Gov. Doug Ducey signed into law on Friday legislation that will allow private self-insured employers to direct care for injured workers and permit the use of mail-order pharmacies in workers compensation.

S.B. 1042, which unanimously passed the state’s House and Senate in early April, amends workers compensation statutes relating to reimbursement guidelines for medications dispensed in settings not generally accessible to the general public to allow workers to receive pharmaceuticals from mail-order pharmacies so long as the referring medical provider does not receive a rebate, refund, commission or other compensation for the referral.

The bill also adds a provision stating it will not prohibit private self-insured employers from continuing to direct medical, surgical or hospital care, and allows health care providers or pharmacies to enter into a separate contract or network that governs workers compensation fees, in which case the reimbursement will be made according to the negotiated rate.

The legislation takes effect immediately.