§ 640b. Request for preauthorization to determine if proposed benefits or services are necessary
(a) As used in this section:
(1) “Benefits” means medical treatment and surgical, medical, and nursing services and
supplies, including prescription drugs and durable medical equipment.
(2) “Services” means medical case management services.
(b) Within 14 days after receiving a written request for preauthorization for proposed
benefits and medical evidence supporting the requested benefits, a workers’ compensation
insurer shall do one of the following, in writing:
(1) Authorize the benefits and notify the health care provider, the injured worker, and
the Department.
(2) Deny the benefits because the entire claim is disputed and the Commissioner has not
issued an interim order to pay benefits. The insurer shall notify the health care
provider, the injured worker, and the Department of the decision to deny benefits.
(3) Deny the benefits if, based on a preponderance of credible medical evidence specifically
addressing the proposed benefits, the benefits are unreasonable, unnecessary, or unrelated
to the work injury. The insurer shall notify the health care provider, the injured
worker, and the Department of the decision to deny benefits.
(4) Notify the health care provider, the injured worker, and the Department that the insurer
has scheduled an examination of the employee pursuant to section 655 of this title or ordered a medical record review pursuant to section 655a of this title. Based on the examination or review, the insurer shall authorize or deny the benefits
and notify the Department and the injured worker of the decision within 45 days after
a request for preauthorization. The Commissioner may, in the Commissioner’s sole discretion,
grant a 10-day extension to the insurer to authorize or deny benefits, and such an
extension shall not be subject to appeal.
(c) If the insurer fails to authorize or deny the benefits pursuant to subsection (b)
of this section within 14 days after receiving a request, the claimant or health care
provider may request that the Department issue an order authorizing benefits. After
receipt of the request, the Department shall issue an interim order within five days
after notice to the insurer, and five days in which to respond, absent evidence that
the entire claim is disputed. Upon request of a party, the Commissioner shall notify
the parties that the benefits have been authorized by operation of law.
(d) If the insurer denies the preauthorization of the benefits pursuant to subdivision
(b)(2), (3), or (4) of this section, the Commissioner may, on the Commissioner’s own
initiative or upon a request by the claimant, issue an order authorizing the benefits
if the Commissioner finds that the evidence shows that the benefits are reasonable,
necessary, and related to the work injury.
(e) Within 14 days after receiving a request for preauthorization of proposed medical
case management services, the insurer shall do one of the following, in writing:
(1) Authorize the services and notify the injured employee, the Department, and the treating
provider recommending the services, if applicable.
(2) Deny the services because the entire claim is disputed, and the Commissioner has not
issued an interim order to pay benefits. The insurer shall notify the injured employee,
the Department, and the treating provider recommending the services, if applicable,
of the decision to deny benefits.
(3) Deny the request if there is not reasonable support for the requested services. The
insurer shall notify the injured employee, the Department, and the treating provider
recommending the services, if applicable, of the decision to deny benefits.
(4) Notify the injured employee, the Department, and the treating provider recommending
the services, if applicable, that the insurer has scheduled an examination of the
injured employee pursuant to section 655 of this title or ordered a medical record review pursuant to section 655a of this title. Based on the examination or review, the insurer shall notify the injured employee
and the Department of the decision within 45 days after a request for preauthorization.
The Commissioner may, in the Commissioner’s sole discretion, grant a 10-day extension
to the insurer to authorize or deny the services, and such an extension shall not
be subject to appeal.
(f) If the insurer fails to authorize or deny the services pursuant to subsection (e)
of this section within 14 days after receiving a request, the injured employee or
the injured employee’s treating provider, if applicable, may request that the Department
issue an order authorizing services. After receipt of the request, the Department
shall issue an interim order within five days after notice to the insurer, and five
days in which to respond, absent evidence that the entire claim is disputed. Upon
request of a party, the Commissioner shall notify the parties that the services have
been authorized by operation of law.
(g) If the insurer denies the preauthorization of the services pursuant to subdivision
(e)(2), (3), or (4) of this section, the Commissioner may, on the Commissioner’s own
initiative or upon a request by the injured worker, issue an order authorizing the
services if the Commissioner finds that the evidence shows that the services are reasonably
supported. (Added 2011, No. 50, § 3; amended 2023, No. 76, § 29, eff. July 1, 2023; 2025, No. 40, § 24, eff. July 1, 2025.)