Nebraska employers could choose workers’ compensation deductibles

Workers’ compensation policies would offer employers a medical-benefit deductible option. These options apply to workers’ compensation policies issued under Nebraska’s Workers’ Compensation Act. An employer could choose one amount from $500 to $2,500 per claim, in $500 steps. A deductible covering all insurer payments could be offered only if both the employer and insurer agree; it must be at least $50,000 and no more than 40% of the employer’s otherwise applicable annual premium. An insurer would not have to offer a deductible if a credit check finds that the employer cannot afford it. The policy must explain the options in writing to each prospective buyer.

Insurers would pay claims and medical providers, then seek deductible reimbursement from the employer. These rules apply when an employer chooses a workers’ compensation policy with a deductible. The employer would owe reimbursement only up to the deductible limit. Employees could not be required to pay any deductible amount, and employers could not make them give up their right to choose a doctor. Violating these employee protections would be a Class II misdemeanor.

Insurers would credit deductible losses against an employer’s experience rating while the deductible is in use. The credit applies to losses paid by the employer under the deductible. An employer could instead choose a gross reportable deductible policy, which is excepted from this credit rule. The credit rule would begin January 1, 2027, and apply while the employer uses the deductible.