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TAB Issue Area: Worker' CompensationCurrent Efforts
Workers' Compensation Reform - House Bill 7
Letter to Commissioner Geeslin in regard to new Network Rules (Password required) Bills of Interest (Password required)
It has been more than a decade since TAB, through its "Jobs For Texas" initiative, led the fight for reform in the Texas workers' compensation system. Sadly, despite our past successes, the system is beginning to exhibit serious warning signs of deterioration. At the heart of this looming crisis is the issue of high medical costs in the Texas workers' comp system. Medical costs in Texas are now reported to be among the highest in the nation with annual payouts topping more than $1 billion dollars. Both state and national surveys report medical costs in Texas to be somewhere between 57% and 79% above the national average. Texas is now forced to appropriate more than $125 million dollars to cover its comp costs, while multi-state employers witness and statistically detail the dramatic disparity between their Texas workers' comp costs versus those of their operations in other states.
Last session, with the help of a handful of courageous lawmakers, TAB introduced and almost passed historic legislation designed to increase the participation of employers in the selection of medical providers. A recent completed study of the effects of networks on medical costs within the workers' compensation system determined that employer–established networks provide appreciable cost savings (Source: Workers' Compensation Research Institute). Thus, TAB will be back again this session to work with legislators to pass this much needed reform. While special interests and factions of healthcare providers worked diligently to stop any real efforts at reform, TAB was able to make significant changes in the workers' comp system that should yield large results for Texas business. Recognizing the potential impact that workers' comp can have on the general business climate in Texas, TAB will be working harder than ever to build upon the momentum developed during the 76th Legislative Session. In order to continue and ensure the favorable climate brought on by the reforms of 1989, employers everywhere must recommit themselves to pushing harder for the changes that will make Texas an even more attractive place to do business. The measures that TAB will pursue during the 77th Texas Legislature, to make the workers' compensation system more efficient, effective and fair to Texas employers include: Employer Participation in Selection of Medical Providers. Develop and support legislation that allows employers to provide benefits through established healthcare networks for the treatment of workers' compensation injuries. Establishment of Ancillary Services Provider Networks. Develop and support legislation that allows employers or their carriers to establish networks for the provision of ancillary medical services to injured workers. Examples of ancillary services include: diagnostic tests, x-rays, various types of therapy, magnetic resonance images (MRI), etc. Extension of Exclusive Remedy to Parent-Sister Corporations. Support legislation to close the loophole in Texas law that allows injured workers to collect workers' compensation benefits and also sue their employer's parent or sister corporation for damages related to that injury. Fraud: Monitoring, Detection and Prosecution. Support legislation that increases TWCC focus on identifying and prosecuting fraud within the workers' compensation system. Also, support incentives for identification and successful prosecution of workers' compensation fraud. Health & Safety. Support cost-effective health and safety measures, including measures designed to provide notice to an employer of unsafe conditions and timeframes to correct potential problems prior to bringing a lawsuit. Illegal Drug Use. Support legislation encouraging zero tolerance for the presence of alcohol or illegal drugs on the job. Impairment Ratings. Maintain the objectivity of the workers' comp system by ensuring that adopted medical impairment guidelines do not raise impairment benefit payment amounts. Also, support continued monitoring of the impairment income benefits system. Mandatory Workers' Compensation. Oppose legislation that seeks to establish a mandatory workers' compensation system in Texas. Mental Health. Oppose legislation designed to expand mental health treatment guidelines, or the inclusion of psychologists as authorized treating physicians. Opinion of Chosen Doctor. Support legislation to clarify that claimants and carriers may not appeal the opinions of their chosen doctor in the areas of medical treatment, impairment and dispute process. Regulatory Efficiency. Support measures to increase efficiency in the operation and administration of the Texas Workers' Compensation Commission (TWCC). Retaliatory Discharge. Support legislation to limit damages and restrict the scope of actions filed by a terminated employee for workers' compensation retaliatory discharge. Settlements. Oppose legislation that attempts to reintroduce lump sum settlements, including medical lifetime benefits, into the Texas workers' compensation system. Tighter Restrictions on Change of Treating Doctor. Amend and clarify existing law regarding authorization for a change of treating doctor. . |
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These ridiculously high medical costs are occurring against the backdrop of a
dramatically safer workplace. The Texas Workers' Compensation Commission (TWCC) recently reported that both the frequency and severity of workplace
injuries are now among the lowest in history. A safer work environment has been created even with a statewide 4.2% increase in the workforce. Contributing to the
decline is an extremely tight labor market that forces employers to focus on workplace safety.
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