This information is provided free of charge by the Department of Industrial Relations
from its web site at www.dir.ca.gov. These regulations are for the
convenience of the user and no representation or warranty is made that the information
is current or accurate. See full disclaimer at http://www.dir.ca.gov/od_pub/disclaimer.html.
Chapter 4.5. Division of Workers' Compensation Subchapter 1. Administrative
Director--Administrative Rules Article 3.5. Medical Provider Networks
§9767.8. Modification of Medical Provider Network Plan
Notice of medical provider network plan modification Labor Code 9767.8
(a) The MPN applicant shall serve the Administrative Director with an original Notice of MPN Plan Modification with original signature, any necessary documentation, and a copy of the Notice and any necessary documentation before any of the following changes occur:
(1) A change of 10% or more in the number or specialty of providers participating in the network since the approval date of the previous MPN Plan application or modification.
(2) A change of 25% or more in the number of covered employees since the approval date of the previous MPN Plan application or modification.
(3) A material change in the continuity of care policy.
(4) A material change in the transfer of care policy.
(5) Change in policy or procedure that is used by the MPN or an entity contracted with the MPN or MPN applicant to conduct “economic profiling of MPN providers” pursuant to Labor Code section 4616.1.
(6) Change in the name of the MPN or the MPN Applicant.
(7) Change in geographic service area within the State of California.
(8) Change in how the MPN complies with the access standards.
(9) A material change in any of the employee notification materials, including a change in MPN contact information or a change in provider listing access or website information, required by section 9767.12.
(10) Change in use of one of the following deemed entities: Health Care Organization (HCO), Health Care Service Plan, Group Disability Insurer, or Taft-Hartley Health and Welfare Trust Fund.
(11) Revision of any plan section(s) required by sections 9767.3(d)(8) or 9767.3(e) due to a change of any MPN administrator(s) listed in the MPN Plan.
(12) Replacement of entire MPN plan application.
(13) Updating to the permanent regulations pursuant to section 9767.15.
(b) The MPN applicant shall serve the Administrative Director with a Notice of MPN Plan Modification within 5 business days of a change of the DWC liaison or authorized individual.
(c) The modification must be verified by an officer or employee of the MPN with the authority to act on behalf of the MPN applicant with respect to the MPN. The verification by the authorized individual shall state: “I, the undersigned officer or employee of the MPN applicant, have read and signed this notice and know the contents thereof, and verify that, to the best of my knowledge and belief, the information included in this notice is true and correct.”
(d) Within 60 days of the Administrative Director's receipt of a Notice of MPN Plan Modification, the Administrative Director shall approve or disapprove the plan modification based on information provided in the Notice of MPN Plan Modification. The Administrative Director shall approve or disapprove a plan modification based on the requirements of Labor Code section 4616 et seq. and this article. If the Administrative Director has not acted on a plan within 60 days of submittal of a Notice of MPN Plan Modification, it shall be deemed approved. Except for subdivisions (a)(6) and (b) of this section, modifications shall not be made until the Administrative Director has approved the plan or until 60 days have passed, which ever occurs first. If the Administrative Director disapproves of the MPN plan modification, he or she shall serve the MPN applicant with a Notice of Disapproval within 60 days of the submittal of a Notice of MPN Plan Modification.
(e) A MPN applicant denied approval of a MPN plan modification may either:
(1) Submit a new request addressing the deficiencies; or
(2) Request a re-evaluation by the Administrative Director.
(f) Any MPN applicant may request a re-evaluation of the denial by submitting with the Division, within 20 days of the issuance of the Notice of Disapproval, a written request for a re-evaluation with a detailed statement explaining the basis upon which a re-evaluation is requested. The request for re-evaluation shall be accompanied by supportive documentary material relevant to the specific allegations raised and shall be verified under penalty of perjury. The MPN application and modification at issue shall not be refiled; they shall be made part of the administrative record by incorporation by reference.
(g) The Administrative Director shall, within 45 days of the receipt of the request for a re-evaluation, either:
(1) Issue a Decision and Order affirming or modifying the Notice of Disapproval based on a failure to meet the procedural requirements of this section or based on a failure to meet the requirements of Labor Code section 4616 et seq. and this article; or
(2) Issue a Decision and Order revoking the Notice of Disapproval and issue an approval of the modification.
(h) The Administrative Director may extend the time specified in subdivision (h) within which to act upon the request for a re-evaluation for a period of 30 days and may order a party to submit additional documents or information.
(i) A MPN applicant may appeal the Administrative Director's decision and order regarding the MPN by filing, within twenty (20) days of the issuance of the decision and order, a petition at the district office of the Workers' Compensation Appeals Board closest to the MPN applicant's principal place of business, together with a Declaration of Readiness to Proceed. The petition shall set forth the specific factual and/or legal reason(s) for the appeal. A copy of the petition and of the Declaration of Readiness to Proceed shall be concurrently served on the Administrative Director.
(j) The MPN applicant shall use the following Notice of MPN Plan Modification form:
Image 1 (5.85" X 7.6") Available for Offline Print
Image 2 (5.82" X 3.54") Available for Offline Print
Note: Authority cited: Sections 133, 4616(g) and 5300(f), Labor Code. Reference: Sections 3700, 3743, 4616, 4616.2 and 4616.5, Labor Code.
1. New section filed 11-1-2004 as an emergency; operative 11-1-2004 (Register 2004, No. 45). A Certificate of Compliance must be transmitted to OAL by 3-1-2005 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 2-28-2005 as an emergency; operative 3-1-2005 (Register 2005, No. 9). A Certificate of Compliance must be transmitted to OAL by 6-29-2005 or emergency language will be repealed by operation of law on the following day.
3. New section refiled 6-20-2005 as an emergency; operative 6-29-2005 (Register 2005, No. 25). A Certificate of Compliance must be transmitted to OAL by 10-27-2005 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 6-20-2005 order, including amendment of section and Note, transmitted to OAL 7-29-2005 and filed 9-9-2005 (Register 2005, No. 36).
5. Change without regulatory effect amending form filed 5-23-2007 pursuant to section 100, title 1, California Code of Regulations (Register 2007, No. 21).
6. Amendment of subsections (a)(5)-(6) and (a)(9), new subsections (a)(10)-(13) and amendment of subsections (b)-(d), (g)(2) and (j) filed 8-9-2010; operative 10-8-2010 (Register 2010, No. 33).
Back to Article 3.5 Table of Contents