STATEMENT OF BASIS AND PURPOSE FOR
AMENDMENTS TO THE WORKERS’ COMPENSATION RULES OF PROCEDURE
7 CCR 1101-3

BASIS:  §8-47-107, C.R.S. provides the Director of the Division of Workers’ Compensation with authority to adopt and amend proper rules and regulations to govern the proceedings and hearings of the Division.  The Director also is given authority and directed to adopt rules concerning specific matters that fall within the Workers’ Compensation Act.  For instance, §8-42-101(3)(a)(I) requires the Director to annually review the medical fee schedule established by the Division.  

PURPOSE:  These rules amendments will update, revise or clarify previous Workers’ Compensation Rules of Procedure. The revisions identify and clarify procedures and requirements, update and clarify language, fees, forms and payments contained within the rules.  Further the rules update policy and reflect statutory changes.

The rules addressed the following subjects:

•	Rule 16     Utilization Standards updated standard terminology, revision of administrative procedures and requirements.  This rule is to be used in conjunction with, and to implement the Medical Treatment Guidelines and Medical Fee Schedule.

•	Rule 18    Medical Fee Schedule required by statute, this rule sets out maximum allowable fees for health care and related services falling within the purview of the Workers’ Compensation Act. Amendments revise, clarify and update language, terminology, procedures, requirements, billing codes, fees, payments and relative values associated with the fee schedule. 

•	The rules revise and correct numbering, citations, and minor grammatical and clerical errors.

Pursuant to §24-4-103(4)(b), C.R.S., the Director finds that: 1) there is a demonstrated need for the rule amendments; 2) the proper statutory authority exists for this regulation; 3) to the extent practicable, the rules are clearly stated so that their meaning will be understood by any party required to comply with the regulation; 4) the rules do not conflict with other provisions of law; and 5) the duplicating or overlapping of the regulation is explained by the agency adopting the rules.
	
      Effective date of the rule changes will be January 1, 2010.

Bob Summers					September 16, 2009
Director              				Date