Text: HSB00690 Text: HSB00692 Text: HSB00600 - HSB00699 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 85.38, subsection 2, Code 1995, is
1 2 amended by striking the subsection and inserting in lieu
1 3 thereof the following:
1 4 2. LIEN FOR BENEFITS PAID UNDER NONOCCUPATIONAL PLANS. If
1 5 an employer denies liability for any medical, surgical, or
1 6 hospital benefits under this chapter, chapter 85A, or chapter
1 7 85B, and the employee is a beneficiary under either an
1 8 individual or group plan for nonoccupational illness, injury,
1 9 or disability, the nonoccupational plan shall not deny payment
1 10 for the benefits on the grounds that the illness, injury, or
1 11 disability is excluded from payment because the condition
1 12 arose out of and in the course of employment. A
1 13 nonoccupational plan which pays benefits for an employee's
1 14 illness, injury, or disability under this subsection shall
1 15 have a lien, in an amount equal to the payments made by the
1 16 plan for the benefits provided, upon the employee's cause of
1 17 action against the employer under this chapter, chapter 85A,
1 18 or chapter 85B. The lien shall be effective when written
1 19 notice is sent by the plan to the employer by regular mail.
1 20 EXPLANATION
1 21 This bill provides that a nonoccupational health plan shall
1 22 not deny benefits to an employee on the grounds that the
1 23 injury or illness arose out of the employee's employment if
1 24 the employer disputes its liability under workers'
1 25 compensation. The bill provides that the plan shall have a
1 26 lien against an employee's cause of action against the
1 27 employer under workers' compensation.
1 28 Current law, which is repealed by this bill, provides that
1 29 a nonoccupational group plan that pays benefits which would
1 30 not have been payable if a right to benefits existed under
1 31 workers' compensation shall be credited with any workers'
1 32 compensation payments made to the employee.
1 33 LSB 3774HC 76
1 34 ec/jj/8
Text: HSB00690 Text: HSB00692 Text: HSB00600 - HSB00699 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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