In a document remarkably free of legislative and regulatory recommendations, the Texas Department of Insurance, Division of Workers' Compensation (DWC) has issued its biennial report.

The analysis of the Texas workers' compensation system in calendar year 2010 had positive news for employees, employers, and providers. According to the report, major reform bills passed in 2001 and 2005 have brought significant improvements to the system. The study reported that:

Since 2003, the state's workers' compensation insurance rates have come down some 40 percent.
Since the passage of HB 7 in 2005, the non-fatal occupational injury illness rate in Texas decreased 19 percent from 3.6 to 2.9 injuries per 100 full-time employees.
Since the passage of HB 7, the percentage of employers in Texas that have workers' compensation coverage has increased from 62 percent in 2004 to 68 percent 2010. (Texas is the only state where private-sector employers — regardless of employer size or industry — are permitted the option of obtaining workers' compensation coverage or becoming “non-subscribers” to the workers' compensation system.) The division credits this increase in employer participation primarily to lower insurance premiums and the increased availability of workers' compensation health care networks.
Since the passage of HB 2600 in 2001 and HB 7 in 2005, there has been a steady increase in the percentage of injured employees receiving Temporary Income Benefits (TIBs) who have initially returned to work post-injury. Of those employees injured in 2004 receiving TIBs, only 74 percent initially returned to work within six months post-injury. In 2009, that number rose to 80 percent.
Approximately 71 percent of employees injured in 2008 who initially returned to work within the first six months of their injuries remained employed for three consecutive quarters, compared to only 66 percent of those employees injured in 2004.

More Physicians, More Choices

In more good news, the passage of tort reform legislation in 2003 appears to have enticed more physicians to participate in the Texas workers' compensation system. With fewer injured employees competing for the same physician, the percentage of claimants receiving first non-emergency service within seven days of the injury has increased. Initial research shows that the median cost per claim decreases if the injured employee receives first non-emergency medical service within a week of the injury.

Additionally, certified workers' compensation health care networks have grown steadily since the division began accepting applications in January 2006. As of Nov. 1, 2010, there were 30 certified networks extending over 249 counties (Texas has 254 counties total). The division reported that most Texas counties with network coverage support multiple networks, affording insurance carriers and their policyholders various coverage options.

The sole recommendation in the report — to align the “Statutory Authority for the Commissioner of Workers' Compensation to Designate a Statistical Agent for the Collection of Data with Similar Authority Currently Utilized by the Commissioner of Insurance” — is being considered during the Legislature's current session.

Special Reports /

Texas Work Comp Division Touts Improvements

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