House Study Bill 658 HOUSE FILE BY (PROPOSED COMMITTEE ON LABOR BILL BY CHAIRPERSON OLSON) Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the payment of certain medically related 2 workers' compensation expenses and providing a penalty. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6474YC 82 5 av/nh/8 PAG LIN 1 1 Section 1. Section 86.13, Code 2007, is amended to read as 1 2 follows: 1 3 86.13 COMPENSATION PAYMENTS. 1 4 1. If an employer or insurance carrier pays weekly 1 5 compensation benefits to an employee or pays benefits on 1 6 behalf of an employee pursuant to section 85.27, the employer 1 7 or insurance carrier shall file with the workers' compensation 1 8 commissioner in the form and manner required by the workers' 1 9 compensation commissioner a notice of the commencement of the 1 10 payments. The payments establish conclusively that the 1 11 employer and insurance carrier have notice of the injury for 1 12 which benefits are claimed but the payments do not constitute 1 13 an admission of liability under this chapter or chapter 85, 1 14 85A, or 85B. 1 15 2. If an employer or insurance carrier fails to file the 1 16 notice required by this section, the failure stops the running 1 17 of the time periods in section 85.26 as of the date of the 1 18 first payment. If commenced,theweekly compensation benefit 1 19 payments shall be terminated only when the employee has 1 20 returned to work, or upon thirty days' notice stating the 1 21 reason for the termination and advising the employee of the 1 22 right to file a claim with the workers' compensation 1 23 commissioner. 1 24 3. This section does not prevent the parties from reaching 1 25 an agreement for settlement regarding compensation. However, 1 26 the agreement is valid only if signed by all parties and 1 27 approved by the workers' compensation commissioner. 1 28 4. If a delay in commencement or termination of weekly 1 29 compensation benefits or benefits paid pursuant to section 1 30 85.27 occurs without reasonable or probable cause or excuse, 1 31 the workers' compensation commissioner shall award benefits in 1 32 addition to those benefits payable under this chapter, or 1 33 chapter 85, 85A, or 85B, up to fifty percent of the amount of 1 34 benefits that were unreasonably delayed or denied. 1 35 EXPLANATION 2 1 This bill provides that if an employer or insurance carrier 2 2 pays workers' compensation benefits on behalf of an employee 2 3 pursuant to Code section 85.27, the employer or carrier must 2 4 file notice of commencement of the payments with the workers' 2 5 compensation commissioner. 2 6 The bill also provides that if such benefits are delayed or 2 7 terminated without reasonable or probable cause or excuse, the 2 8 employer or carrier will be liable to pay additional benefits 2 9 of up to 50 percent of the amount of the benefits that were 2 10 unreasonably delayed or denied. 2 11 Expenses payable pursuant to Code section 85.27 include 2 12 reasonable surgical, medical, dental, osteopathic, 2 13 chiropractic, podiatric, physical rehabilitation, nursing, 2 14 ambulance and hospital services, and supplies, as well as 2 15 reasonably necessary transportation expenses incurred for such 2 16 services. 2 17 LSB 6474YC 82 2 18 av/nh/8