23-1070. Medical, surgical and hospital
benefits provided by employer


A. An employer, other than the state or a political subdivision thereof, who
secures compensation to his employees in the manner provided in either subsection A,
paragraph 1, or subsection A, paragraph 2 of section 23-961, alone or jointly with other
employers may, in lieu of making premium payments for medical, surgical and hospital
benefits, provide such benefits to injured employees and may collect one-half of the cost
thereof from his employees, not to exceed one dollar per month from any employee, which
may be deducted from the wages of the employee.


B. An employer electing to provide such benefits shall notify his insurance carrier
and the commission of the election and render a detailed statement of the arrangements
made therefor to the commission.


C. An employer who maintains a hospital for his employees or who contracts with a
physician for the hospital care of injured employees shall, on or before January 30 each
year, make a verified written report to the commission for the preceding year showing the
total amount of hospital fees collected and showing separately the amount contributed by
the employees and the amount contributed by the employers. The report shall also contain
an itemized account of the expenditures, investments or other disposition of the fees,
and a statement showing the balance remaining.


D. An employer who fails to notify his insurance carrier and the commission of his
election to provide such benefits, or who maintains a hospital or contracts for hospital
service as provided in subsection C of this section, and fails to make the financial
report required therein, is liable for such benefits as provided in section 23-1062.


E. If the medical, surgical or hospital aid or treatment being furnished by an
employer is such that there is reasonable ground to believe that the health, life or
recovery of any employee is endangered or impaired thereby, the commission may, upon
application of the employee or upon its own motion, order a change of physicians or other
conditions. If the employer fails to comply with the order promptly, the injured
employee may elect to have medical, surgical or hospital aid or treatment provided by or
through the state compensation fund. In that event the claim of the injured employee
against the employer shall be assigned to the state compensation fund for the benefit
thereof, and the state compensation fund shall furnish to the insured employee medical,
surgical or hospital aid or treatment as provided in this chapter.