Financial incentives to deny or delay claim or medical care - prohibition

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- penalties. (1) No insurer, employee or contractor of an insurer, self-insured employer, employee or contractor of a self-insured employer, health care provider, or employee or contractor of a health care provider treating an injured worker under the provisions of articles 40 to 47 of this title shall pay or receive any form of financial remuneration that is based on any of the following:

  1. The number of days to maximum medical improvement;

  2. The rate of claims approval or denial;

  3. The number of medical procedures, diagnostic procedures, or treatment appointmentsapproved; or

  4. Any other criteria designed or intended to encourage a violation of any provision ofarticles 40 to 47 of this title.

(2) (a) Payment of remuneration in violation of this section constitutes an unfair act or practice in the business of insurance, and the insurer or self-insured employer who pays or directs the payment of the remuneration shall be subject to penalties in accordance with part 11 of article 3 of title 10, C.R.S.

(b) In addition to, or as an alternative to, any penalties imposed pursuant to paragraph (a) of this subsection (2), an insurer or self-insured employer who is found to have violated subsection (1) of this section may be subject to fines as determined by the director pursuant to section 8-43-304 (1.5).

(3) Nothing in this section:

  1. Restricts or limits the ability of a claims adjuster or employee or contracted claimspersonnel to investigate, detect, or prevent fraud; or

  2. Limits the payment or receipt of financial incentives for any other lawful purpose.

Source: L. 2010: Entire section added, (SB 10-011), ch. 302, p. 1432, § 2, effective May 27.


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