End Workers' Comp Commission, Texas Panel Says

By Matt Brady

NU Online News Service, Sept. 17, 4 :10p.m. EDT?The Texas Sunset Advisory Commission hasrecommended that state lawmakers eliminate the state's Workers'Compensation Commission, a move the chairman of the WCC criticizedas primarily cosmetic.[@@]

Under the Sunset Commission's recommendations, the regulatoryfunctions of the workers' compensation system would be placed underthe jurisdiction of the state Dept. of Insurance, while the TexasWorkforce Commission would assume control of the WCC's educationalfunctions.

The Sunset Commission also has recommended establishing anOffice of Employee Assistance, which would be led by a singledirector appointed by the governor and would provide legalrepresentation and public advocacy on workers' compensation to theInsurance Department.

"The Sunset Commission has made some good recommendations," saidWCC chairman Mike Hachtman in a statement. "However, therecommendation to abolish the Workers' Compensation Commission islike replacing the crew of the Titanic but not changing course.

"The Texas workers' compensation system is still headed fordisaster. I am concerned we are spending too much time and efforttalking about who is going to be driving and not on where we shouldbe headed. The fundamental problems with the Texas workers'compensation system lie within the system, not with theadministration."

Mr. Hachtman specifically took issue with the recommendationputting the insurance department in charge of administering theworkers' comp system.

"The Texas Department of Insurance regulates insurance companies- including workers' comp insurance companies," he said. "And theydo a good job, but there is nothing in the TDI mission, goals orvision remotely close to administering workers' compensation. Theyare not set up to administer disputes on medical issues, settleissues on injury compensability or income benefits."

Others offered support for the proposals, however.

"The sunset commission has put forth a series of boldrecommendations that are focused on helping injured workers getquality care and return to work, while controlling costs," said JoeWoods, regional manager and assistant vice president for theProperty Casualty Insurers Association of America.

"Clearly," he said, "the structure of the workers' compensationcommission required more than minor tweaking and therecommendations provide a solid outline that lawmakers can use todevelop very effective legislation."

Additionally, the Sunset panel recommended restructuring theworkers' comp system to operate in a way similar to group healthinsurance, and implementing various cost-containment practices andstrategies.

"We were pleased to see the Sunset Commission embrace theconcept of a medical network system for the delivery of health careto injured workers," said Mr. Woods.

"Over the past few years, perhaps the biggest problem with theTexas workers' compensation system has been abuses in the deliveryof medical care," he said.

He added that, "This has resulted in Texas having the highestmedical cost per injury and one of the worst return-to-workoutcomes in the United States. We believe the network approach willresult in quality care, employees returning to work in anappropriate amount of time and bring better control of costs."