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NSW scheme implements ‘reasonable and necessary’ rule 

Another set of changes to the NSW workers’ compensation scheme has commenced as part of the government’s reform of work injury laws that started on July 1. 

Starting this month, new claims for medical or related treatment, hospital treatment, ambulance services and workplace rehabilitation services must meet the “reasonable and necessary” test rule. 

Workers’ compensation scheme insurers will apply the test to determine if a treatment or service is reasonable and necessary. 

“This change is designed to improve consistency in decision making about evidence-based treatment and support across the scheme,” the State Insurance Regulatory Authority said. 

“In general, approval from the insurer is required before any treatment or services are provided.” 

Under the new rules, certain treatment and service are not compensable, such as life and wellness coaching-related therapy. 

Another change from October 1 provides expanded access, for a limited period, to commutations for some workers who may not meet the eligibility requirements under the existing commutation pathway. 

“New requirements mean independent legal and financial advice must be accessed before some commutation arrangements can proceed,” SIRA said.