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Text: HSB00016                          Text: HSB00018
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House Study Bill 17

Bill Text

PAG LIN
  1  1    Section 1.  Section 85.38, subsection 2, Code 1997, 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 under this chapter, chapter 85A,
  1  6 or chapter 85B, for payment for any medical services received
  1  7 by an employee with a disability, and the employee is a
  1  8 beneficiary under either an individual or group plan for
  1  9 nonoccupational illness, injury, or disability, the
  1 10 nonoccupational plan shall not deny payment for the medical
  1 11 services received on the grounds that the illness, injury, or
  1 12 disability is excluded from coverage under the plan because
  1 13 the condition arose out of and in the course of employment.  A
  1 14 nonoccupational plan which pays for the medical services for
  1 15 an employee's illness, injury, or disability under this
  1 16 subsection shall have a lien, in an amount up to the payments
  1 17 made by the plan for such medical services, against any
  1 18 benefits which are payable under this chapter, chapter 85A, or
  1 19 chapter 85B for such medical services.  The lien shall be
  1 20 effective when written notice of payment for any such medical
  1 21 services is sent by the plan to the employer by regular mail.  
  1 22                           EXPLANATION
  1 23    This bill provides that a nonoccupational health plan shall
  1 24 not deny benefits to an employee on the grounds that the
  1 25 injury or illness arose out of the employee's employment if
  1 26 the employer disputes its liability under the workers'
  1 27 compensation law.  The bill provides that the plan shall have
  1 28 a lien against any workers' compensation benefits made to the
  1 29 employee in an amount which would be payable under the
  1 30 workers' compensation law.
  1 31    Current law, which is repealed by this bill, provides that
  1 32 a nonoccupational group plan that pays benefits which would
  1 33 not have been payable if a right to benefits existed under
  1 34 workers' compensation shall be credited with any workers'
  1 35 compensation payments made to the employee.  
  2  1 LSB 1659HC 77
  2  2 ec/jj/8
     

Text: HSB00016                          Text: HSB00018
Text: HSB00000 - HSB00099               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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