End Workers' Comp Commission, Texas Panel Says

End Workers' Comp Commission, Texas Panel Says

By Matt Brady

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

Under the Sunset Commission's recommendations, the regulatory functions of the workers' compensation system would be placed under the jurisdiction of the state Dept. of Insurance, while the Texas Workforce Commission would assume control of the WCC's educational functions.

The Sunset Commission also has recommended establishing an Office of Employee Assistance, which would be led by a single director appointed by the governor and would provide legal representation and public advocacy on workers' compensation to the Insurance Department.

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

"The Texas workers' compensation system is still headed for disaster. I am concerned we are spending too much time and effort talking about who is going to be driving and not on where we should be headed. The fundamental problems with the Texas workers' compensation system lie within the system, not with the administration."

Mr. Hachtman specifically took issue with the recommendation putting the insurance department in charge of administering the workers' comp system.

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

Others offered support for the proposals, however.

"The sunset commission has put forth a series of bold recommendations that are focused on helping injured workers get quality care and return to work, while controlling costs," said Joe Woods, regional manager and assistant vice president for the Property Casualty Insurers Association of America.

"Clearly," he said, "the structure of the workers' compensation commission required more than minor tweaking and the recommendations provide a solid outline that lawmakers can use to develop very effective legislation."

Additionally, the Sunset panel recommended restructuring the workers' comp system to operate in a way similar to group health insurance, and implementing various cost-containment practices and strategies.

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

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

He added that, "This has resulted in Texas having the highest medical cost per injury and one of the worst return-to-work outcomes in the United States. We believe the network approach will result in quality care, employees returning to work in an appropriate amount of time and bring better control of costs."