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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1077
Introduced by Brandt, 32.
Read first time January 15, 2026
Committee: Business and Labor
A BILL FOR AN ACT relating to the Nebraska Workers' Compensation Act; to1
amend section 48-146.03, Reissue Revised Statutes of Nebraska; to2
change provisions relating to workers' compensation insurance3
policies and deductibles; and to repeal the original section.4
Be it enacted by the people of the State of Nebraska,5
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Section 1. Section 48-146.03, Reissue Revised Statutes of Nebraska,1
is amended to read: 2
48-146.03 (1) Each workers' compensation insurance policy issued by3
an insurer pursuant to the Nebraska Workers' Compensation Act:4
(a) Shall offer, at the option of the insured employer, a deductible5
for medical benefits in the amount of five hundred dollars to two6
thousand five hundred dollars per claim in increments of five hundred7
dollars; or 8
(b) May offer, at the option of the insured employer and the9
workers' compensation insurer, a deductible for all amounts paid by the10
insurer as long as the deductible is not more than forty percent of the11
insured employer's otherwise applicable annual workers' compensation12
insurance premium at rates approved for the insurer but not less than13
fifty thousand dollars. 14
The insured employer, if choosing to exercise one of such options15
listed in this subsection, may choose only one of the amounts as the16
deductible. The provisions of this section shall be fully disclosed to17
each prospective purchaser in writing. 18
(2) The deductible form shall provide that the workers' compensation19
insurer shall remain liable for and shall pay the entire cost of medical20
benefits for each claim directly to the medical provider, shall remain21
liable for and pay the entire cost of benefits, claims, and expenses as22
required by the policy irrespective of the deductible provision, and23
shall then be reimbursed by the employer for any deductible amounts paid24
by the workers' compensation insurer. The employer shall be liable for25
reimbursement up to the limit of the deductible. 26
(3) Beginning January 1, 2027, losses paid by the employer under the27
deductible shall be credited against the employer's experience28
modification while the deductible option is used, unless the employer29
elects to purchase a gross reportable deductible policy.30
(4) (3) A workers' compensation insurer shall not be required to31
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offer a deductible if, as a result of a credit investigation, the insurer1
determines that the employer does not have the financial ability to be2
responsible for the payment of deductible amounts. 3
(5) (4) A workers' compensation insurer shall service and, if4
necessary, defend all claims that arise during the policy period,5
including those claims payable in whole or in part from the deductible6
amount, and shall make such reports to the compensation court of payments7
made, including payments made under the deductible provisions, as may be8
required by the compensation court. 9
(6) (5) A person who is employed by a policyholder which chooses to10
exercise the option of a deductible policy shall not be required to pay11
any of the deductible amount, and any such policyholder shall not require12
or attempt to require the employee to give up his or her right of13
selection of physician set out in section 48-120. Any violation of this14
subsection shall be a Class II misdemeanor. 15
Sec. 2. Original section 48-146.03, Reissue Revised Statutes of16
Nebraska, is repealed. 17
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