41-1626. COMPENSATION REIMBURSEMENT OPTION. Notwithstanding any other provision of this code, an insurer issuing a worker’s compensation insurance contract may include as part of the contract an option allowing a policyholder at the policyholder’s sole discretion, to reimburse the insurer for compensation in amounts not to exceed one thousand dollars ($1,000) per claim, subject to the following conditions:
(1) Claimant’s rights shall be properly protected, and claimant’s benefits have been paid by the insurer.
(2) The insurer shall pay all benefits of a compensable claim to the person or provider entitled to benefits regardless of the policyholder’s option to reimburse the insurer for the claim. Payment of benefits shall not be delayed due to the decision of a policyholder to reimburse the insurer for the claim.
(3) The making of such reimbursement does not constitute a waiver or transfer of the insurer’s duty to determine entitlement to benefits.
(4) In the event the insurer recovers any medical costs on a claim reimbursed pursuant to this section, the insurer shall repay the policyholder within thirty (30) days an amount equal to recovered medical costs.
(5) The claim to which a reimbursement by the policyholder applies may not exceed one thousand dollars ($1,000) over the life of the claim. Should a claim exceed the one thousand dollar ($1,000) limit after a portion has been reimbursed by the policyholder, the insurer shall within thirty (30) days notify the policyholder and return the reimbursement and adjust all reports accordingly.
(6) The policyholder shall make all reports of accidents, injuries and losses to the insurer as required under the provisions of title 72, Idaho Code, regardless of the policyholder’s intent to reimburse the insurer.
(7) The insurer shall record and report all losses for the purpose of setting industry rates.
(8) Claims reimbursed pursuant to this section shall not be reported to a rating organization for the purpose of determining the policyholder’s experience rating, nor shall the insurer otherwise increase a policyholder’s experience rating or otherwise make charges against the policyholder for any compensation reimbursed by the policyholder pursuant to this section.
(9) No reduction in current premium may be granted as a result of a reimbursed claim.
(10) Nothing in this section shall apply to worker’s compensation insurance contracts offering the policyholder a deductible pursuant to the provisions of title 72, Idaho Code.
(11) If the insurer offers the reimbursement option and the policyholder elects to exercise such option, the procedure for reimbursement shall be as follows:
(a) Within thirty (30) days following each three (3) month period after policy inception or a period mutually agreed upon by the policyholder and the insurer, the insurer shall provide the policyholder with a list of all accepted nondisabling claims for which payments were made during that period and the respective cost of each claim.
(b) No later than thirty (30) days after receipt of the list, the policyholder shall identify the claims and the dollar amount the policyholder elects to reimburse for that period, and the policyholder shall reimburse the insurer accordingly.
(c) Failure by the policyholder to reimburse the insurer within the thirty (30) days allowed shall be deemed notice to the insurer that the policyholder has not elected to make any reimbursement for that period.
History:
[41-1626, added 1999, ch. 278, sec. 1, p. 692.]