House Engrossed

 

 

 

 

State of Arizona

House of Representatives

Fiftieth Legislature

First Regular Session

2011

 

 

HOUSE BILL 2584

 

 

 

AN ACT

 

amending section 23-1070, Arizona Revised Statutes; relating to workers' compensation.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 



Be it enacted by the Legislature of the State of Arizona:

Section 1.  Section 23-1070, Arizona Revised Statutes, is amended to read:

START_STATUTE23-1070.  Medical, surgical and hospital benefits provided by employer; pilot program

A.  An employer, other than the this state or a political subdivision thereof, of this state, who secures compensation to his employees in the manner provided in either section 23-961, subsection A, paragraph 1 or subsection A, paragraph 2 of section 23‑961, alone or jointly with other employers may, in lieu of making premium payments for medical, surgical and hospital benefits, may provide such benefits to injured employees and may collect one‑half of the cost thereof from his employees, not to exceed one dollar per month from any employee, which may be deducted from the wages of the employee.

B.  An employer electing to provide such benefits shall notify his insurance carrier and the commission of the election and render a detailed statement of the arrangements made therefor to the commission.

C.  An employer who maintains a hospital for his employees or who contracts with a physician for the hospital care of injured employees shall, on or before January 30 each year, make a verified written report to the commission for the preceding year showing the total amount of hospital fees collected and showing separately the amount contributed by the employees and the amount contributed by the employers.  The report shall also contain an itemized account of the expenditures, investments or other disposition of the fees, and a statement showing the balance remaining.

D.  An employer who fails to notify his insurance carrier and the commission of his election to provide such benefits, or who maintains a hospital or contracts for hospital service as provided in subsection C of this section, and fails to make the financial report required therein, is liable for such benefits as provided in section 23‑1062.

E.  If the medical, surgical or hospital aid or treatment being furnished by an employer is such that there is reasonable ground to believe that the health, life or recovery of any employee is endangered or impaired thereby, the commission may, upon application of the employee or upon its own motion, order a change of physicians or other conditions.  If the employer fails to comply with the order promptly, the injured employee may elect to have medical, surgical or hospital aid or treatment provided by or through the state compensation fund.  In that event the claim of the injured employee against the employer shall be assigned to the state compensation fund for the benefit thereof, and the state compensation fund shall furnish to the insured employee medical, surgical or hospital aid or treatment as provided in this chapter.

F.  Notwithstanding subsection A of this section, a pilot program is established to allow this state and either a city with a population of more than one hundred fifty thousand persons or a county with a population of more than one million persons to provide medical, surgical and hospital benefits pursuant to this section.  A qualified city or county may apply to the industrial commission on or before September 30, 2011.  The industrial commission shall select the city or county on or before October 31, 2011.  The city or county may begin providing medical, surgical and hospital benefits pursuant to this section on approval by the industrial commission.  This subsection does not exempt this state or the selected city or county from any other requirements for procurement of a medical network to direct care.  This state and the selected city or county shall report on or before December 31, 2013 to the joint legislative budget committee about the results of the pilot program.  The report shall include the average cost per claim and the average time off work for an injured worker.  The pilot program ends and this state and the selected city or county may not provide medical, surgical and hospital benefits pursuant to this section from and after December 31, 2014. END_STATUTE