May 24, 2011

General Assembly Addresses Provider
Fee Claims and Compliance

Amendments to the Workers Compensation Act passed by the Indiana General Assembly and signed by Governor Mitch Daniels clarify the rules for provider fee disputes and strengthen penalties for noncompliance with employer obligations. Senate Enrolled Act No. 576 contains the changes.

In response to recent litigation involving the length of time a medical provider has to file an application to collect disputed fees in a workers compensation case, the General Assembly stepped into the void and created a two year statute of limitations for such claims. The tricky part of the new requirement is that the two year period does not begin to run until the employer or its carrier provides a written communication to the medical provider in response to a bill for services from the provider. In order to start the clock running, employers and carriers need to respond promptly in writing if they dispute a medical bill. This amendment takes effect on July 1, 2011.

In addition to establishing a limitations period for providers to bring fee claims, other changes target employers who do not comply with their obligations under the Act. The amendments increase penalties and provide the Board with new enforcement methods to pursue employers who fail to satisfy obligations such as reporting and providing proof of workers compensation insurance coverage. These changes also take effect on July 1, 2011.

Some provider fee disputes will fall outside the effective date of the new statute of limitations and the Indiana Supreme Court will soon resolve the issue of the applicable time period for providers to recover those claims. In response to the Court of Appeals decisions in the Indiana Spine Group cases, the Supreme Court accepted transfer and recently heard oral arguments in two of the cases. The Court of Appeals had decided that the law provided no statute of limitations for provider fee claims in workers compensation cases.

If you have specific questions about provider fee claims or other workers compensation matters, please contact Ann Stewart or Karen Dutcher.

This publication is intended for general information purposes only and does not and is not intended to constitute legal advice. The reader must consult with legal counsel to determine how laws or decisions discussed herein apply to the reader's specific circumstances.

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