SB673,36 13Section 36. 102.15 (1) of the statutes is amended to read:
SB673,17,1514 102.15 (1) Subject to this chapter, the division department may adopt its own
15promulgate rules of procedure and may change the same from time to time.
SB673,37 16Section 37. 102.15 (2) of the statutes is amended to read:
SB673,17,1817 102.15 (2) The division department may provide by rule the conditions under
18which transcripts of testimony and proceedings shall be furnished.
SB673,38 19Section 38. 102.16 (1) of the statutes is repealed and recreated to read:
SB673,18,920 102.16 (1) Any controversy concerning compensation or a violation of sub. (3),
21including a controversy in which the state may be a party, shall be submitted to the
22department in the manner and with the effect provided in this chapter. Every
23compromise of any claim for compensation may be reviewed and set aside, modified,
24or confirmed by the department within one year after the date on which the
25compromise is filed with the department, the date on which an award has been

1entered based on the compromise, or the date on which an application for the
2department to take any of those actions is filed with the department. Unless the
3word “compromise" appears in a stipulation of settlement, the settlement shall not
4be considered a compromise, and further claim is not barred except as provided in
5s. 102.17 (4) regardless of whether an award is made. The employer, insurer or
6dependent under s. 102.51 (5) shall have equal rights with the employee to have a
7compromise or any other stipulation of settlement reviewed under this subsection.
8Upon petition filed with the department under this subsection, the department may
9set aside the award or otherwise determine the rights of the parties.
SB673,39 10Section 39. 102.16 (1m) (a) of the statutes is amended to read:
SB673,19,211 102.16 (1m) (a) If an insurer or self-insured employer concedes by compromise
12under sub. (1) or stipulation under s. 102.18 (1) (a) that the insurer or self-insured
13employer is liable under this chapter for any health services provided to an injured
14employee by a health service provider, but disputes the reasonableness of the fee
15charged by the health service provider, the department or the division may include
16in its order confirming the compromise or stipulation a determination made by the
17department under sub. (2) as to the reasonableness of the fee or, if such a
18determination has not yet been made, the department or the division may notify, or
19direct the insurer or self-insured employer to notify, the health service provider
20under sub. (2) (b) that the reasonableness of the fee is in dispute. The department
21or the division shall deny payment of a health service fee that the department
22determines under sub. (2) to be unreasonable. A health service provider and an
23insurer or self-insured employer that are parties to a fee dispute under this
24paragraph are bound by the department's determination under sub. (2) on the
25reasonableness of the disputed fee, unless that determination is set aside, reversed,

1or modified by the department under sub. (2) (f) or is set aside on judicial review as
2provided in sub. (2) (f).
SB673,40 3Section 40. 102.16 (1m) (b) of the statutes is amended to read:
SB673,20,24 102.16 (1m) (b) If an insurer or self-insured employer concedes by compromise
5under sub. (1) or stipulation under s. 102.18 (1) (a) that the insurer or self-insured
6employer is liable under this chapter for any treatment provided to an injured
7employee by a health service provider, but disputes the necessity of the treatment,
8the department or the division may include in its order confirming the compromise
9or stipulation a determination made by the department under sub. (2m) as to the
10necessity of the treatment or, if such a determination has not yet been made, the
11department or the division may notify, or direct the insurer or self-insured employer
12to notify, the health service provider under sub. (2m) (b) that the necessity of the
13treatment is in dispute. Before determining under sub. (2m) the necessity of
14treatment provided to an injured employee, the department may, but is not required
15to, obtain the opinion of an expert selected by the department who is qualified as
16provided in sub. (2m) (c). The standards promulgated under sub. (2m) (g) shall be
17applied by an expert and by the department in rendering an opinion as to, and in
18determining, necessity of treatment under this paragraph. In cases in which no
19standards promulgated under sub. (2m) (g) apply, the department shall find the facts
20regarding necessity of treatment. The department or the division shall deny
21payment for any treatment that the department determines under sub. (2m) to be
22unnecessary. A health service provider and an insurer or self-insured employer that
23are parties to a dispute under this paragraph over the necessity of treatment are
24bound by the department's determination under sub. (2m) on the necessity of the
25disputed treatment, unless that determination is set aside, reversed, or modified by

1the department under sub. (2m) (e) or is set aside on judicial review as provided in
2sub. (2m) (e).
SB673,41 3Section 41. 102.16 (1m) (c) of the statutes is amended to read:
SB673,20,234 102.16 (1m) (c) If an insurer or self-insured employer concedes by compromise
5under sub. (1) or stipulation under s. 102.18 (1) (a) that the insurer or self-insured
6employer is liable under this chapter for the cost of a prescription drug dispensed
7under s. 102.425 (2) for outpatient use by an injured employee, but disputes the
8reasonableness of the amount charged for the prescription drug, the department or
9the division
may include in its order confirming the compromise or stipulation a
10determination made by the department under s. 102.425 (4m) as to the
11reasonableness of the prescription drug charge or, if such a determination has not
12yet been made, the department or the division may notify, or direct the insurer or
13self-insured employer to notify, the pharmacist or practitioner dispensing the
14prescription drug under s. 102.425 (4m) (b) that the reasonableness of the
15prescription drug charge is in dispute. The department or the division shall deny
16payment of a prescription drug charge that the department determines under s.
17102.425 (4m) to be unreasonable. A pharmacist or practitioner and an insurer or
18self-insured employer that are parties to a dispute under this paragraph over the
19reasonableness of a prescription drug charge are bound by the department's
20determination under s. 102.425 (4m) on the reasonableness of the disputed
21prescription drug charge, unless that determination is set aside, reversed, or
22modified by the department under s. 102.425 (4m) (e) or is set aside on judicial review
23as provided in s. 102.425 (4m) (e).
SB673,42 24Section 42. 102.16 (2) (a) of the statutes is amended to read:
SB673,21,14
1102.16 (2) (a) Except as provided in this paragraph, the department has
2jurisdiction under this subsection, the department and the division have jurisdiction
3under
sub. (1m) (a), and the division has jurisdiction under s. 102.17 to resolve a
4dispute between a health service provider and an insurer or self-insured employer
5over the reasonableness of a fee charged by the health service provider for health
6services provided to an injured employee who claims benefits under this chapter. A
7health service provider may not submit a fee dispute to the department under this
8subsection before all treatment by the health service provider of the employee's
9injury has ended if the amount in controversy, whether based on a single charge or
10a combination of charges for one or more days of service, is less than $25. After all
11treatment by a health service provider of an employee's injury has ended, the health
12service provider may submit any fee dispute to the department, regardless of the
13amount in controversy. The department shall deny payment of a health service fee
14that the department determines under this subsection to be unreasonable.
SB673,43 15Section 43. 102.16 (2) (b) of the statutes is amended to read:
SB673,21,2316 102.16 (2) (b) An insurer or self-insured employer that disputes the
17reasonableness of a fee charged by a health service provider or the department or the
18division
under sub. (1m) (a) or s. 102.18 (1) (bg) 1. shall provide reasonable written
19notice to the health service provider that the fee is being disputed. After receiving
20reasonable written notice under this paragraph or under sub. (1m) (a) or s. 102.18
21(1) (bg) 1. that a health service fee is being disputed, a health service provider may
22not collect the disputed fee from, or bring an action for collection of the disputed fee
23against, the employee who received the services for which the fee was charged.
SB673,44 24Section 44. 102.16 (2m) (a) of the statutes is amended to read:
SB673,22,14
1102.16 (2m) (a) Except as provided in this paragraph, the department has
2jurisdiction under this subsection, the department and the division have jurisdiction
3under
sub. (1m) (b), and the division has jurisdiction under s. 102.17 to resolve a
4dispute between a health service provider and an insurer or self-insured employer
5over the necessity of treatment provided for an injured employee who claims benefits
6under this chapter. A health service provider may not submit a dispute over
7necessity of treatment to the department under this subsection before all treatment
8by the health service provider of the employee's injury has ended if the amount in
9controversy, whether based on a single charge or a combination of charges for one or
10more days of service, is less than $25. After all treatment by a health service provider
11of an employee's injury has ended, the health service provider may submit any
12dispute over necessity of treatment to the department, regardless of the amount in
13controversy. The department shall deny payment for any treatment that the
14department determines under this subsection to be unnecessary.
SB673,45 15Section 45. 102.16 (2m) (b) of the statutes is amended to read:
SB673,22,2416 102.16 (2m) (b) An insurer or self-insured employer that disputes the
17necessity of treatment provided by a health service provider or the department or the
18division
under sub. (1m) (b) or s. 102.18 (1) (bg) 2. shall provide reasonable written
19notice to the health service provider that the necessity of that treatment is being
20disputed. After receiving reasonable written notice under this paragraph or under
21sub. (1m) (b) or s. 102.18 (1) (bg) 2. that the necessity of treatment is being disputed,
22a health service provider may not collect a fee for that disputed treatment from, or
23bring an action for collection of the fee for that disputed treatment against, the
24employee who received the treatment.
SB673,46 25Section 46. 102.16 (4) of the statutes is amended to read:
SB673,23,8
1102.16 (4) The department and the division have has jurisdiction to pass on any
2question arising out of sub. (3) and to order the employer to reimburse an employee
3or other person for any sum deducted from wages or paid by him or her in violation
4of that subsection. In addition to the penalty provided in s. 102.85 (1), any employer
5violating sub. (3) shall be liable to an injured employee for the reasonable value of
6the necessary services rendered to that employee under any arrangement made in
7violation of sub. (3) without regard to that employee's actual disbursements for those
8services.
SB673,47 9Section 47. 102.17 (1) (a) 1. of the statutes is amended to read:
SB673,23,1510 102.17 (1) (a) 1. Upon the filing with the department by any party in interest
11of any application in writing stating the general nature of any claim as to which any
12dispute or controversy may have arisen, the department shall mail a copy of the
13application to all other parties in interest, and the insurance carrier shall be
14considered a party in interest. The department or the division may bring in
15additional parties by service of a copy of the application.
SB673,48 16Section 48. 102.17 (1) (a) 2. of the statutes is amended to read:
SB673,24,217 102.17 (1) (a) 2. Subject to subd. 3., the division department shall cause notice
18of hearing on the application to be given to each interested party by service of that
19notice on the interested party personally or by mailing a copy of that notice to the
20interested party's last-known address at least 10 days before the hearing. If a party
21in interest is located without this state, and has no post-office address within this
22state, the copy of the application and copies of all notices shall be filed with the
23department of financial institutions and shall also be sent by registered or certified
24mail to the last-known post-office address of the party. Such filing and mailing shall

1constitute sufficient service, with the same effect as if served upon a party located
2within this state.
SB673,49 3Section 49. 102.17 (1) (a) 3. of the statutes is amended to read:
SB673,24,84 102.17 (1) (a) 3. If a party in interest claims that the employer or insurer has
5acted with malice or bad faith as described in s. 102.18 (1) (b) 3. or (bp), that party
6shall provide written notice stating with reasonable specificity the basis for the claim
7to the employer, the insurer, and the department, and the division before the division
8department schedules a hearing on the claim of malice or bad faith.
SB673,50 9Section 50. 102.17 (1) (a) 4. of the statutes is amended to read: