California Workers Comp Funding And SB 863
California workers comp funding is the process of securing immediate payments for a medical facility or physician who has provided treatments and services to an injured party, done so by selling the accounts receivable associated with the case to a third party. That third party then assumes all risks associated with the collection of the debt in exchange for paying a discounted amount to the medical facility, assuring that the facility or physician sees prompt payments that do not have to be repaid if the debt is not able to be collected. Once the medical facility is paid, and the accounts receivable become the property of the third party, the treatment provider is no longer at risk of bad debt for the remainder of the life of the case. SB 863 brought about some significant changes to the California worker’s comp funding process, and assured that fraudulent claims would be kept to a minimum.
SB 863 added three requisitions that must be in place before the medical lien can be re-assigned to another party. The first requisition is that the payments for the services that are rendered must be made to the person who provided the service, or in the name of the company that the medical personnel work for. Even though they have the right to re-assign the lien, the payment must still be made directly to them and the new owner of the lien must collect from them. It is the responsibility of the new lien holder to obtain the payment from the facility.
The second provision in SB 863 is that a copy of the assignment of the lien must be filed and served legally, regardless of the nature of the lien, being in its entirety or only for interest. For all claims filed after January 1, 2013 the copy is required on the time of filing or within 20 days after filing.
The final provision that SB 863 put forth is that the assignment of the lien must be filed along with a witness declaration that the bills are valid and that the services were actually provided to the injured party. All products and services that have been provided must be accounted for and described in the assignment.
The changes that SB 863 made to the process of California worker’s comp funding provide protections from fraudulent activities and abuse of the system through false claims. The protections put in place significantly aid the state in cutting down on worker’s comp fraud in California, and therefore protecting the taxpayers from inflated premiums as a result of these types of cases. The added provisions make it more difficult for companies who are less than reputable to actually abuse the system. Med-Care Solutions has a long history of providing funding solutions to medical facilities and care providers in California and other states, and prides itself on being a leader in the field and the company of choice for so many involved with providing treatments to injured workers. Contact a Med-Care Solutions representative today to find out more information about our account receivable funding programs, and start enjoying the added revenues that accepting California worker’s comp cases can provide you.