2015 ORS 656.313¹
Stay of compensation pending request for hearing or review
  • procedure for denial of claim for medical services
  • reimbursement

(1)(a) Filing by an employer or the insurer of a request for hearing on a reconsideration order before the Hearings Division, a request for Workers Compensation Board review or court appeal or request for review of an order of the Director of the Department of Consumer and Business Services regarding vocational assistance stays payment of the compensation appealed, except for:

(A) Temporary disability benefits that accrue from the date of the order appealed from until closure under ORS 656.268 (Claim closure), or until the order appealed from is itself reversed, whichever event first occurs;

(B) Permanent total disability benefits that accrue from the date of the order appealed from until the order appealed from is reversed;

(C) Death benefits payable to a surviving spouse prior to remarriage, to children or dependents that accrue from the date of the order appealed from until the order appealed from is reversed; and

(D) Vocational benefits ordered by the director pursuant to ORS 656.340 (Vocational assistance procedure) (16). If a denial of vocational benefits is upheld by a final order, the insurer or self-insured employer shall be reimbursed from the Workers Benefit Fund pursuant to ORS 656.605 (Workers Benefit Fund) for all costs incurred in providing vocational benefits as a result of the order that was appealed.

(b) If ultimately found payable under a final order, benefits withheld under this subsection, and attorney fees and costs, shall accrue interest at the rate provided in ORS 82.010 (Legal rate of interest) from the date of the order appealed from through the date of payment. The board shall expedite review of appeals in which payment of compensation has been stayed under this section.

(2) If the board or court subsequently orders that compensation to the claimant should not have been allowed or should have been awarded in a lesser amount than awarded, the claimant shall not be obligated to repay any such compensation which was paid pending the review or appeal.

(3) If an insurer or self-insured employer denies the compensability of all or any portion of a claim submitted for medical services, the insurer or self-insured employer shall send notice of the denial to each provider of such medical services and to any provider of health insurance for the injured worker. Except for medical services payable in accordance with ORS 656.247 (Payment for medical services prior to claim acceptance or denial), after receiving notice of the denial, a medical service provider may submit medical reports and bills for the disputed medical services to the provider of health insurance for the injured worker. The health insurance provider shall pay all such bills in accordance with the limits, terms and conditions of the policy. If the injured worker has no health insurance, such bills may be submitted to the injured worker. A provider of disputed medical services shall make no further effort to collect disputed medical service bills from the injured worker until the issue of compensability of the medical services has been finally determined.

(4) Except for medical services payable in accordance with ORS 656.247 (Payment for medical services prior to claim acceptance or denial):

(a) When the compensability issue has been finally determined or when disposition or settlement of the claim has been made pursuant to ORS 656.236 (Compromise and release of claim matters except for medical benefits) or 656.289 (Orders of Administrative Law Judge) (4), the insurer or self-insured employer shall notify each affected service provider and health insurance provider of the results of the disposition or settlement.

(b) If the services are determined to be compensable, the insurer or self-insured employer shall reimburse each health insurance provider for the amount of claims paid by the health insurance provider pursuant to this section. Such reimbursement shall be in addition to compensation or medical benefits the worker receives. Medical service reimbursement shall be paid directly to the health insurance provider.

(c) If the services are settled pursuant to ORS 656.289 (Orders of Administrative Law Judge) (4), the insurer or self-insured employer shall reimburse, out of the settlement proceeds, each medical service provider for billings received by the insurer or self-insured employer on and before the date on which the terms of settlement are agreed as specified in the settlement document that are not otherwise partially or fully reimbursed.

(d) Reimbursement under this section shall be made only for medical services related to the claim that would be compensable under this chapter if the claim were compensable and shall be made at one-half the amount provided under ORS 656.248 (Medical service fee schedules). In no event shall reimbursement made to medical service providers exceed 40 percent of the total present value of the settlement amount, except with the consent of the worker. If the settlement proceeds are insufficient to allow each medical service provider the reimbursement amount authorized under this subsection, the insurer or self-insured employer shall reduce each providers reimbursement by the same proportional amount. Reimbursement under this section shall not prevent a medical service provider or health insurance provider from recovering the balance of amounts owing for such services directly from the worker, unless the worker agrees to pay all medical service providers directly from the settlement proceeds the amount provided under ORS 656.248 (Medical service fee schedules).

(5) As used in this section, health insurance has the meaning for that term provided in ORS 731.162 (Health insurance). [1965 c.285 §41; 1979 c.673 §1; 1981 c.535 §8; 1981 c.854 §22; 1983 c.809 §2; 1990 c.2 §23; 1993 c.521 §1; 1995 c.332 §38; amendments by 1995 c.332 §38a repealed by 1999 c.6 §1; 1999 c.6 §11; 2001 c.865 §13a; 2005 c.588 §4; 2009 c.35 §4; 2011 c.80 §1; 2015 c.521 §4]

Note: See notes under 656.202 (Compensation payable to subject worker in accordance with law in effect at time of injury).

Note: See first note under 656.012 (Findings and policy).

Notes of Decisions

Penalty for unreasonably resisting pay­ment is not compensa­tion and need not be paid pending ap­peal. Reed v. Del Chemical, 26 Or App 733, 554 P2d 586 (1976), Sup Ct review denied

Determina­tion of extent of disability will not be stayed pending ap­peal of compensability. SAIF v. Maddox, 295 Or 448, 667 P2d 529 (1983)

Provision that claimant need not repay compensa­tion paid pending review applies to attorney fees paid out of compensa­tion award. SAIF v. Gatti, 72 Or App 106, 694 P2d 1020 (1985), Sup Ct review denied

Compensa­tion includes interim compensa­tion. Georgia-Pacific v. Hughes, 305 Or 286, 751 P2d 775 (1988)

Order requiring pay­ments of interim compensa­tion was not stayed pending review, but penalties could be assessed only for failure to compensate for time claimant was absent from work. Georgia-Pacific v. Hughes, 305 Or 286, 751 P2d 775 (1988)

Reference to requests for reviews or ap­peals is not intended to exclude other pro­ceed­ing and permit employer to terminate compensa­tion pay­ments pending hearing on determina­tion order. Georgia-Pacific v. Piwowar, 305 Or 494, 753 P2d 948 (1988)

Employer filing ap­peal of disability award need not also ap­peal sub­se­quent determina­tion order to stay pay­ment. Diamond Fruit Growers v. Goss, 120 Or App 390, 852 P2d 915 (1993), Sup Ct review denied; SAIF v. VanLanen, 127 Or App 346, 873 P2d 1086 (1994), Sup Ct review denied

Request for reconsidera­tion of determina­tion order by Depart­ment of Insurance and Finance is not same as review of order on reconsidera­tion and therefore does not stay pay­ment of compensa­tion. Sisters of Providence v. East, 122 Or App 366, 858 P2d 155 (1993)

Employee has uncondi­tional right to receive temporary disability benefits pending employer ap­peal of reconsidera­tion order awarding temporary disability. Anodizing, Inc. v. Heath, 129 Or App 352, 879 P2d 218 (1994); Foster Wheeler Constructors, Inc. v. Parker, 148 Or App 6, 939 P2d 52 (1997)

Where pay­ment of pre­vi­ously stayed benefits was by monthly install­ments, interest on stayed benefit amount did not continue to accrue on outstanding install­ment balance. Hinkley v. Oregon State Police, 131 Or App 382, 885 P2d 756 (1994)

Require­ment that employer pay temporary disability benefits accruing from date of order being ap­pealed does not create independent entitle­ment to benefits. Liberty Northwest Ins. Corp. v. Cotner, 148 Or App 28, 939 P2d 62 (1997), Sup Ct review denied

Substantive temporary disability benefit is made ex­plic­it and uncondi­tional entitle­ment by statute or administrative rule, while procedural temporary disability is condi­tional, arising solely from vagaries of claim processing. Atchley v. GTE Metal Erectors, 149 Or App 581, 945 P2d 557 (1997), Sup Ct review denied

Law Review Cita­tions

55 OLR 432-445 (1976); 16 WLR 519 (1979); 22 WLR 559 (1986)

Chapter 656

Notes of Decisions

Party having af­firm­a­tive of any issue must prove it by preponderance of evidence unless legislature fixes some different quantum of proof. Hutcheson v. Weyerhaeuser Co., 288 Or 51, 602 P2d 268 (1979)

Amend­ments to existing statutes and enact­ment of addi­tional statutes by 1995 legisla­tion generally apply to pending cases and to orders still ap­pealable on June 7, 1995, effective date. Volk v. America West Air­lines, 135 Or App 565, 899 P2d 746 (1995), Sup Ct review denied

Amend­ments to existing statutes and enact­ment of addi­tional statutes by 1995 legisla­tion do not extend or shorten procedural time limita­tions with regard to ac­tions taken prior to June 7, 1995, effective date. Motel 6 v. McMasters, 135 Or App 583, 899 P2d 1212 (1995)

Atty. Gen. Opinions

Benefit unavailability for inmates engaged in prison work programs, (1996) Vol 48, p 134

Law Review Cita­tions

24 WLR 321, 341 (1988); 32 WLR 217 (1996)


1 Legislative Counsel Committee, CHAPTER 656—Workers Compensation, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors656.­html (2015) (last ac­cessed Jul. 16, 2016).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2015, Chapter 656, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano656.­html (2015) (last ac­cessed Jul. 16, 2016).
 
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent.