Key Changes Effective 2024
California has introduced three major updates: mandatory telemedicine options for injured workers, a revised medical fee schedule that lowers reimbursement rates for certain procedures, and a tighter employer reporting deadline that moves the initial claim notice from 30 to 15 days after injury.
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Telemedicine Expansion
Employers can now require a qualified telehealth provider for initial evaluations and follow‑up visits, provided the provider is licensed in California and uses a secure platform. The law aims to reduce delays in care, especially in rural areas, while maintaining the same benefit eligibility as in‑person visits.
Revised Medical Fee Schedule
The Department of Industrial Relations (DIR) released a new fee schedule that reduces rates for non‑surgical procedures by 5‑10% and caps certain diagnostic imaging costs. Physicians must submit claims using the updated fee codes; otherwise, payments may be delayed or reduced.
Employer Reporting Deadline
Employers must now file the OSHA‑style First Report of Injury within 15 calendar days, down from the previous 30‑day window. Late filings trigger a $250 penalty per day and may affect the employee's ability to receive timely benefits.
Impact on Claimants and Employers
Claimants benefit from faster access to care via telemedicine but must ensure the provider's network includes their preferred specialists. Employers face tighter compliance timelines and must update payroll and HR software to accommodate the new fee schedule and reporting rules.
Compliance Checklist
- Verify telehealth provider licensing and platform security.
- Update medical billing software with the latest DIR fee codes.
- Train HR staff on the 15‑day reporting requirement and penalty structure.
- Review worker‑handbook policies to reflect new procedures.
Comparison of Old vs. New Requirements
| Aspect | Previous Rule | New Rule (2024) |
|---|---|---|
| Telemedicine | Optional, case‑by‑case | Mandatory for initial and follow‑up when provider approved |
| Medical Fee Schedule | Higher reimbursement rates | Reduced rates for many procedures, caps on imaging |
| Employer Reporting | 30‑day notice | 15‑day notice with daily penalties for lateness |