I wonder if you are quoting the correct Labor Code. 5402(c) specifically deals with the employer having to pay for medical treatment up to $10,000 during a delay period. That is usually 90 days after you reported a claim until they admit or deny a claim.
As for denying your payments, you may not be entitled to salary continuation, however you may be entitled to temporary disability or state disability at this point. You indicated that you have an AME, which would mean that you have an attorney. I would recommend that you discuss this with your attorney.
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You can only go to an AME if you have an attorney. Since you went to an AME, you must have an attorney. I suggest you pose your question to your attorney. He knows you, your doctors, your case, all of it better than any of us responding on AVVO.
Find a qualified lawyer (someone who practices workers comp) in your area. Most consults are free.
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