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The Iowa Senate on Tuesday approved a bill that would create a special state prosecutor and workers compensation fraud unit within the Iowa Insurance Division’s fraud bureau to specifically target complaints of workers compensation fraud.
S.F. 2305, introduced by state Sen. Jake Chapman, R-Adel, and passed 28-22 along party lines, would also regulate billing by medical service providers and allow employers to select an injured worker’s doctor, among other provisions regarding providers.
For workers who are suspected to have committed fraud, benefits could be suspended if the fraud unit files charges, according to a draft of the bill.
The bill now moves to the House of Representatives for consideration.
Iowa Gov. Terry Branstad signed a workers compensation reform bill into law Thursday, minus controversial language that would have limited benefits for older workers.