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Steffey Insurance > News  > House Bill 1320: Worker’s Compensation

House Bill 1320: Worker’s Compensation

During the first regular session of the Indiana General Assembly, many new bills were filed, which will affect the insurance industry in the Hoosier state.  We want to take a look at each one and help describe how it may affect YOU!  We’ll start with House Enrolled Act (HEA) 1320, regarding worker’s compensation.  Here is the description of the bill as taken from the General Assembly website:

DIGEST OF HB 1320 (Updated April 26, 2013 11:59 am – DI 102)

Worker’s compensation. Specifies, after June 30, 2014, the pecuniary liability for worker’s compensation and occupational diseases compensation payments to a medical service facility. Specifies the reimbursement amounts for repackaged drugs. Provides that payment to a medical service provider for an implant furnished to an employee under worker’s compensation or occupational diseases compensation may not exceed the invoice amount plus 25%. Allows a medical service provider to request an explanation from a billing review service if the medical service provider’s bill has been reduced as a result of the application of a Medicare coding change. Defines “medical service facility”, “services and/or product”, and “medical service provider” for purposes of the worker’s compensation and occupational diseases compensation law. Increases the maximum average weekly wage by 20% and provides for graduated percentage increases for degrees of permanent partial impairment/disablement over a three-year period, beginning on July 1, 2014. Provides for worker’s compensation insurance policy periods as permitted in certain rules. Provides for an annual filing fee of $2 from an employer to be deposited in the worker’s compensation supplemental administrative fund. Specifies that all data collected by the worker’s compensation rating bureau is considered to be confidential. Urges the legislative council to assign to the interim study committee on insurance the study of worker’s compensation and occupational diseases compensation topics, including: (1) minimum payment amounts for services or products provided by medical service facilities; (2) payment for services or products provided by hospital employed physicians; (3) the electronic submission and payment of claims filed by medical service providers, including the applicability of the “clean claim” procedures described in IC 27-8-5.7; (4) payment amounts for implants; and (5) the establishment and membership of an advisory committee to advise the worker’s compensation board in the administration of the worker’s compensation and occupational diseases compensation program. Makes conforming amendments and technical corrections.

Basically, this act creates a law that will govern reimbursement costs to medical facilities in the event of a worker’s compensation claim.  It will put a cap on medicare reimbursement, as well as regulate reimbursement amounts for repackaged drugs.  This will help control exorbitant medical costs incurred to insurance companies in the case of a worker’s compensation claim.

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Steffey Hatoway
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