Healthesystems attended the Alaska Medical Services Review Committee (MSRC) meeting on August 8, 2025, where the committee approved recommended changes to the Workers’ Compensation Medical Fee Schedule, effective January 1, 2026.

Key changes include new language aimed at improving clarity and fairness in medical reimbursement, particularly across DME, Home Health Services, and Medical Evaluations.

For DME items without a fee schedule value, monthly rentals will be reimbursed at 10% of the invoice cost. Daily rates will be derived from the monthly rate. Items listed without a RR modifier fee schedule value should be reimbursed at the lesser of the non-modified or modified with NU value multiplied by .10 or the billed monthly charge.

As for uncoded/unvalued DME items, items listed at $0.00 or without a code must be billed with the correct HCPCS or CPT code. Reimbursement is the lower of invoice + 20% or billed charges.

Within Home Health, custodial care (e.g., personal, companion, attendant) will be reimbursed by agreement between payer and provider. Skilled care by qualified providers (e.g., nursing, therapy) will be reimbursed according to the fee schedule if medically necessary and properly billed.

The MSRC also plans to evaluate ground ambulance services and long-term rehab hospital care in 2026, citing concerns about excessive billing and high costs compared to Medicare standards.

The changes will now be reviewed at a joint Workers’ Compensation Board (WCB) and MSRC meeting on August 22nd, with final adoption expected in October.