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Bill would penalize dunning injured workers

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medical bill

The Minnesota House of Representatives passed a bill Thursday that would penalize health care providers that attempt to collect reimbursement from injured workers for workers compensation medical procedures.

H.B. 2253, which passed in a 128-3 vote, outlines penalties, costs and expenses for attempts made by health care providers to collect for medical services from an injured worker if they have been told the services rendered were for a claimed workers compensation injury.

Under the bill, a health care provider may be fined $1,000 for each attempt to collect payment from an injured worker for care rendered for a compensable injury. This includes contact by mail, telephone, text or email, engaging a collection agency or third-party to collect from the employee, filing a claim in conciliation court, attaching the employee’s tax refund or submitting a report to a credit agency.

In addition, the legislation authorizes the insurance commissioner to order the health care provider to reimburse costs and expenses incurred by the employee as a result of illegal actions to collect. This includes making reasonable efforts to restore the worker’s credit rating if it has been damaged as a result of a violation and reimbursing the injured worker for any money paid to the health care provider, with interest.

The bill also would make changes to indemnity payments and facility care reimbursement. The legislation would change the minimum weekly wage to 20% of the maximum weekly compensation payable or the employee’s actual weekly wage, whichever is less. Currently, the minimum weekly compensation is $130 per week or the injured employee’s actual wage if it is less than that amount.

For facility care, the legislation would modify the maximum reimbursement for inpatient hospital services and care from ambulatory surgical centers by tying them to a percentage of Medicare.

If signed into law, the penalties for improper collection from workers would take effect July 1, 2021, with the remainder taking effect Oct. 1, 2021.