HBA-NIK, NIK, MPA H.B. 2512 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2512
By: Giddings
Business & Industry
3/11/1999
Introduced




BACKGROUND AND PURPOSE 

Currently, the Texas Workers' Compensation Act authorizes a Texas Workers'
Compensation Commission (commission) benefit review officer (BRO), at a
benefit review conference, to enter interlocutory (temporary) orders for an
insurance carrier to pay benefits to an injured worker.  BROs do not enter
limited interlocutory orders, instead these orders are for all accrued
medical and income benefits, or no benefits.  An award of all accrued
medical benefits can amount to a substantial sum of money, making a BRO
reluctant to enter an order.  If an interlocutory order is overturned at a
contested case hearing, a carrier may seek reimbursement from the
commission's subsequent injury fund (SIF).  Hearing officers do not
currently have the authority to enter interlocutory orders, and there is no
provision for reimbursement if the hearing officer's decision is
overturned. 

Several specific treatments and services require carrier pre-authorization,
or pre-approval, before being administered to an injured worker.  If a
treatment or service is denied an injured worker may have to wait months
pending the outcome of the medical review process.  The executive director
of the commission does not have the authority to enter interlocutory orders
in these cases. 

H.B. 2512 clarifies that either a BRO at a benefit review conference or a
hearing officer at a contested case hearing has the discretion to enter
limited interlocutory order to pay benefits, and allows insurance carriers
to seek recovery of overpayments if the order is overturned.  This bill
also authorizes the executive director of the commission to enter
interlocutory orders to ensure that essential medical benefits are provided
pending the outcome of a formal hearing, which would be reviewed under the
Administrative Procedure Act (Chapter 2001, Government Code).  An insurance
carrier making payments under this order would have the right to seek
reimbursement from the SIF if the order is subsequently overturned. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Workers' Compensation
Commission SECTION 6 (Section 413.055, Labor Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 402.073(b), Labor Code, to make a conforming
change. 

SECTION 2.  Amends Section 410.032, Labor Code, to authorize a benefit
review officer to issue an interlocutory order for payment of all or part
of medical benefits or income benefits, including accrued benefits, future
benefits or both, if the officer recommends that benefits be paid or not
paid. Makes conforming changes. 

SECTION 3.  Amends Section 410.168, Labor Code, to authorize the hearing
officer's written decision to address accrued benefits, future benefits, or
both accrued and future benefits.  Authorizes the hearing officer to enter
into an interlocutory order for payment of all or part of medical benefits
or income benefits, including accrued benefits, future benefits or both,
which is binding until the hearing officer issues the written decision
required under this section.  Redesignates Subsections (b)(d) to Subsection
(d)-(f).   
 
SECTION 4. Amends Section 410.205, Labor Code, to make  conforming changes.

SECTION 5.  Amends Subchapter E, Chapter 410, Labor Code, by adding Section
410.209, as follows: 

Sec. 410.209. REIMBURSEMENT OR OVERPAYMENT. Requires the subsequent injury
fund to reimburse an insurance carrier for any overpayments of benefits
made under an interlocutory order or decision that is later reversed or
modified by final arbitration, order, or decision of the commission or
court.  Requires the commission, by rule, to provide for a periodic
reimbursement schedule, with reimbursements made not less than annually.   
  
SECTION 6.  Amends Subchapter E, Chapter 413, Labor Code, by adding Section
413.055, as follows: 

Sec. 413.055.  INTERLOCUTORY ORDERS; REIMBURSEMENT.  (a) Authorizes the
executive director of the commission to enter an interlocutory order for
payment of all or part of the medical expenses as provided by commission
rules.  Authorizes the order to address accrued benefits, future benefits,
or both accrued and future benefits. 

(b) Requires the subsequent injury fund to reimburse an insurance carrier
for any overpayments of benefits made under an  interlocutory order or
decision that is later reversed or modified by final arbitration, order, or
decision of the commission or court. Requires the commission, by rule, to
provide for a periodic reimbursement schedule, with reimbursements made not
less than annually.   

(c) Provides that a party that disputes an order entered under Subsection
(a) is entitled to a hearing.  Requires the hearing to be conducted by the
State Office of Administrative Hearings in the manner provided for a
contested hearing in Chapter 2001 (Administrative Procedure), Government
Code.  Provides that the order is binding during the pendency of the
appeal. 

SECTION 7.Effective date: September 1, 1999.
  Makes application of this Act prospective.

SECTION 8.Emergency clause.