Direct payment for hospital and medical services and home health care; payment to assignee.
1. Any group health policy may provide that all or any portion of any indemnities provided by any such policy on account of hospital, nursing, medical or surgical services, home health care or supportive services:
(a) May, at the insurer’s option; or
(b) Must, upon the written request of the insured,
Ê be paid directly to the hospital or person rendering the services. Payments made in this manner discharge the insurer’s obligation.
2. If the insured assigns his benefits pursuant to this section but the insurer after receiving a copy of the assignment pays the benefits to the insured, the insurer shall also pay the benefits to the assignee as soon as the insurer receives the notice of the incorrect payment.
Last modified: February 27, 2006