Texas House Okays Comp Reform
By Steve Tuckey
NU Online News Service, April 1, 4:26 p.m. EST?The Texas House of Representatives approved a package of revisions for the workers' compensation system yesterday that establishes a managed care network for the system.[@@]
In addition, the bill abolishes the Texas Workers Compensation Committee (TWCC) and moves its functions to the Texas Department of Insurance.
The Senate passed a similar bill last month, but one that creates a new agency that would replace the TWCC. Reform backers in both chambers hope to work out a compromise before the end of the session.
Rep. Burt Solomons, R-Carrollton, said in a press release that moving the function to the TDI "allows the agency that holds the license of many of the system participants to regulate the system."
"Further, the dispute resolution process is streamlined, eliminating many of the lengthy and costly administrative burdens," he said.
The House bill calls for rate hearings every two years to ensure that insurers' expected savings from the measure are reflected in the premiums they charge. If the savings are not reflected in rates, the commissioner is given the authority to reduce them.
In another departure from the Senate bill, the House bill permits health insurers to bid on the health component of workers' comp business.
"The theory was the backers wanted employees to use a health network for comp similar to the ones they use for medical claims," explained Joe Woods of the Property Casualty Insurers Association of America.
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