Washington, DC – The American Insurance Association (AIA) recently hailed the signing of H. B. 1320, workers’ compensation reform legislation, by Governor Mike Pence (R-IN). H. B. 1320 contains important cost containment provisions while it also includes several indemnity benefit increases.
“AIA applauds Governor Pence for signing H. B. 1320 into law and for his continued leadership on this topic throughout the recent legislative session,” said Steve Schneider, AIA Midwest region vice president. “The cost containment reforms in this legislation are important and address needed problems which have been steadily mounting in Indiana in recent years.”
HB 1320 imposes a fee schedule with a maximum reimbursement rate set at 200 percent of the Medicare rate for treatments and procedures by medical service providers to workers’ compensation claimants. This new standard will help control the increasing costs for medical care provided to injured workers in the state. “The bill also calls for an interim study of various issues addressed by the legislation which we also look forward to working on later in the year,” said Schneider.
“We are especially pleased that the legislation contains provisions that will help curtail the rapidly escalating costs of repackaged prescription drugs in Indiana’s workers’ compensation system,” said Schneider. “By imposing a fee schedule with a maximum reimbursement rate and limiting the increasing costs of non-pharmacy dispensed prescription drugs for injured workers in Indiana, H. B. 1320 is an important step forward in addressing this growing problem.”