Labor Code section 127.1

(a)

The administrative director, with input from the Commission on Health and Safety and Workers’ Compensation, shall issue a report to the Legislature, on or before January 1, 2023, comparing potential payment alternatives for providers to the official medical fee schedule, including, but not limited to, capitation, bundled payments, quality incentives, and value-based payment systems.

(b)

The report shall address advantages and disadvantages of each alternative payment system to the official medical fee schedule and make recommendations to the Legislature on alternative payment pilot programs.

(c)

The report shall be submitted in compliance with Section 9795 of the Government Code. The requirement for submitting a report imposed by this section shall be inoperative on January 1, 2024, pursuant to Section 10231.5 of the Government Code.

Source: Section 127.1, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=LAB§ionNum=127.­1.­ (updated Jan. 1, 2020; accessed Dec. 29, 2025).

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Dec. 29, 2025

§ 127.1's source at ca​.gov