HBA-DMD C.S.H.B. 2506 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 2506 By: Solomons Business & Industry 4/16/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Under current law, the Texas Workers' Compensation Commission promulgates a fee schedule for reimbursement of services provided to an injured worker. Employers and carriers that provide workers' compensation coverage cannot negotiate a more favorable rate for providing ancillary services that are necessarily provided by a treating doctor, such as physical therapy, x-rays, and other diagnostic tests. C.S.H.B. 2506 requires the Research and Oversight Council on Workers' Compensation (council) to conduct a pilot program in order to permit employers to identify ancillary medical service providers based on the recommendations and directions of the employee's treating doctor. This bill requires the council to include the results of the review of the pilot program in the council's biennial report. This bill also requires an employee of an employer participating in the pilot program to receive all ancillary medical services identified by the employer or the employer's designee if the service can be provided within a reasonable travel distance. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter B, Chapter 408, Labor Code, by adding Section 408.029, as follows: Sec. 408.029. ANCILLARY MEDICAL SERVICES. (a) Requires the Research and Oversight Council on Workers' Compensation (council) to conduct a pilot program to permit employers to identify ancillary medical service providers based on the recommendations and directions of the employee's treating doctor. Requires the council to appoint an advisory group to direct the pilot. (b) Provides that the pilot program must include up to four employers selected from certain areas. (c) Requires the council to include the results of the review of the pilot program in the council's biennial report filed under Section 404.007 (General Powers and Duties of the Board), Labor Code, no later than December 31, 2000. (d) Requires an employee of an employer participating in the pilot program to receive all ancillary medical services identified by the employer or the employer's designee if the service can be provided within a reasonable travel distance. (e) Specifies the ancillary medical services included in addition to the health care for which an employee is entitled under Section 408.021 (Entitlement to Medical Benefits), Labor Code. SECTION 2.Effective date: September 1, 1999. Makes this Act prospective to compensation benefits filed with the Texas Workers' Compensation Commission. SECTION 3.Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 2506 differs from the original bill in SECTION 1 (proposed Section 408.029, Labor Code), by changing the title from "Ancillary Services" in the original bill to "Ancillary Medical Services" in the substitute. In addition, the substitute replaces the entire proposed text from Subsection (a) requiring an employee to receive all medical services ancillary to the medical treatment at the direction of the employer or the employer's designee, whereas the substitute requires the Research and Oversight Council on Workers' Compensation (council) to conduct a pilot program in order to permit employers to identify ancillary medical service providers based on the recommendations and directions of the employee's treating doctor. Subsection (a) of the substitute also requires the council to appoint an advisory group to direct the pilot program. The substitute deletes Subsection (b) from the original bill, which requires services ancillary to the medical treatment provided under this Act to include certain services. The substitute also deletes rulemaking authority delegated to the Texas Workers' Compensation Commission to recognize services that are ancillary to the medical treatment. Subsection (b) of the substitute provides that the pilot program must include up to four employers selected from certain areas. The substitute adds Subsection (c) to require the council to include the results of the review of the pilot program in the council's biennial report filed under Section 404.007 (General Powers and Duties of the Board), Labor Code, no later than December 31, 2000. The substitute adds Subsection (d), to require an employee of an employer participating in the pilot program to receive all ancillary medical services identified by the employer or the employer's designee if the service can be provided within a reasonable travel distance. The substitute adds Subsection (e) to specify the ancillary medical services included in addition to the health care for which an employee is entitled under Section 408.021 (Entitlement to Medical Benefits), Labor Code. C.S.H.B. 2506 differs from the original bill in SECTION 2 by specifying that this Act applies only to a workers' compensation claim filed on or after the effective date of this Act, rather than a comparable injury that occurs on or after the effective date.