(1) Payments for medical expense claims made pursuant to Title 19, chapter 17, part 5, MCA shall be ordered paid directly to medical service providers after:

(a) the claim is properly filed as described in 19-17-502 , MCA; and

(b) all personal and/or group insurance payments for those services first have been deducted from the claim.

(2) Medical expense claims in excess of $1,000 must be approved by the board prior to payment by MPERA.

(3) Subsequent insurance settlements in payment of medical expenses which have been previously paid by the board shall be reimbursed to the pension fund within 60 days of receipt by member or service provider.