2023 Vermont Statutes
Title 21 - Labor
Chapter 9 - Employer's Liability and Workers' Compensation
§ 640b. Request for preauthorization to determine if proposed benefits are necessary
§ 640b. Request for preauthorization to determine if proposed benefits are necessary
(a) As used in this section, “benefits” means medical treatment and surgical, medical, and nursing services and supplies, including prescription drugs and durable medical equipment.
(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. (Added 2011, No. 50, § 3; amended 2023, No. 76, § 29, eff. July 1, 2023.)
