LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 15, 1999
TO: Honorable Kim Brimer, Chair, House Committee on Business
& Industry
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2545 by Brimer (relating to workers' compensation
medical benefits, claims regarding those benefits, and
requirements imposed on health care providers who
provide services relating to those benefits), Committee
Report 1st House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2545, Committee Report 1st House, Substituted: negative impact *
* of $(679,000) through the biennium ending August 31, 2001. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(339,500) *
* 2001 (339,500) *
* 2002 (339,500) *
* 2003 (339,500) *
* 2004 (339,500) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Probable Revenue Gain/(Loss) *
* Year General Revenue Fund from General Revenue Fund *
* 0001 0001 *
* 2000 $(909,500) $570,000 *
* 2001 (1,295,000) 955,500 *
* 2002 (1,515,000) 1,175,500 *
* 2003 (1,515,000) 1,175,500 *
* 2004 (1,515,000) 1,175,500 *
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Fiscal Analysis
The bill would establish a seven-member medical quality review panel to
direct the review of treatment, evaluation, utilization review practices,
and the regulation of medical service providers and reviewers. The bill
would require the Texas Workers' Compensation Commission (TWCC) to
contract with persons with recognized expertise for clinical reviews,
medical practice outcomes, and research analysis, and would require TWCC
to report twice annually on the activity of the medical review panel.
The bill would also require the workers' compensation insurance carriers
to pay medical claims within 31 days, and pay interest on any claims
that are not paid within the 31 days. These provisions would apply to
the State Office of Risk Management (SORM), which administers workers'
compensation payments for the state.
Methodology
It is estimated that TWCC will incur costs for contracting for medical
expertise and research related to the work of the medical quality review
panel. It is assumed that these costs would be fully offset by
additional revenue from the Workers' Compensation Maintenance Tax.
It is estimated that SORM would spend an additional $300,000 a year on
its contract for medical bill review and cost containment services, due
to the need for a larger number of contractor employees to review bills
in the time required. The agency also estimates a one-time cost of
$39,500 for reprogramming the claims management computer system to
calculate interest.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies:
LBB Staff: JK, TH, RT, CB