SB89 Alabama 2017 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

Regular Session 2017

Title

Workers' compensation, employer liability for permanent total disability benefits after employee reaches age 65 limited, prompt medical attention required for benefits, Secs. 25-5-57, 25-5-77 am'd.

Summary

SB89 would cap permanent total disability benefits after age 65 and require prompt medical attention to qualify for medical benefits following a work injury.

What This Bill Does

It changes the duration of permanent total disability benefits so that payments end at the later of the employee's 65th birthday or 500 weeks after the date of injury. It restricts the employer's obligation to pay medical benefits if the employee does not seek medical care for a claimed work injury within a specified time period. It changes the medical cost framework: hospital and provider payment rates would be set or negotiated under new rules, employees may choose treating physicians from employer panels (and surgeons from panels), and non-participating hospitals would have rates set by committees with annual updates. It includes penalties for undisputed medical payments not paid within 25 working days and maintains dispute resolution options such as an ombudsman and independent medical expert process for medical service disputes.

Who It Affects

• Employees with work-related injuries, especially those who may become permanently totally disabled, who would see PTD benefits capped by the new rule.
• Employers and their insurance carriers, who would face new limits on PTD liability and changes to payment and rate-setting for medical care.

Key Provisions

• Permanent Total Disability benefit is limited to continue until the later of the employee's 65th birthday or 500 weeks after injury and then ends.
• Employee medical benefits may be limited if prompt medical attention for a claimed work injury is not sought within the time period specified by the act.
• Medical cost framework: the employer’s liability for medical services includes requirements for selecting treating physicians from employer panels (four physicians, not from the same firm) and for surgeon selection; rates for non-participating hospitals are set by committees and updated annually.
• Hospitals/healthcare payment rates and reimbursement rules are adjusted to reflect negotiated or committee-set rates rather than a fixed schedule for all providers.
• Late medical payments: undisputed medical reimbursements must be paid within 25 working days, with a 10% penalty if not paid on time, and the director can require payment and penalties if necessary.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Workers' Compensation