SRC-AMY H.B. 3168 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 3168
By: Giddings (Carona)
State Affairs
5/20/2003
Engrossed


DIGEST AND PURPOSE 

The 77th Legislature created a Medical Dispute Resolution (MDR) process.
The Research and Oversight Council on Workers' Compensation (ROC), in its
biennial report, recommended an alternative model for low-cost services in
dispute.  Some health care providers have contended that the cost of
Independent Review Organization review process (either $650 or $460,
depending on the speciality of the reviewer) makes it unfeasible to
dispute health care services that cost less than the cost of the review.
H.B. 3168 authorizes the Texas Workers' Compensation Commission by rule to
specify an alternate dispute resolution process for medical services
costing less than the cost of a review of medical necessity by an
independent review organization.  This bill requires the cost of a review
under this process to be paid by the nonprevailing party. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Texas Workers'
Compensation Commission in SECTION 1 (Section 413.031, Labor Code) of this
bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 413.031, Labor Code, by amending Subsections (e)
and (g)-(l) and adding Subsection (m), as follows: 

(e)  Includes a reference to provisions of Subsections (f) and (g), as
well as Subsection (d), as exceptions. 

(g)  Authorizes  Texas Workers' Compensation Commission by rule to specify
an alternate dispute resolution process for medical services costing less
than the cost of a review of medical necessity by an independent review
organization.  Requires the cost of a review under this process to be paid
by the nonprevailing party. 

(h) Creates this subsection from existing text.

(i) Redesignates this subsection from Subsection (h).

(j)  Redesignates this subsection from Subsection (i).  Provides that
except as provided by Subsection (i), rather than (h), the cost of the
review shall be paid by the nonprevailing party. 

(k) Redesignates this subsection from Subsection (j).  Makes a conforming
change. 

(l) Redesignates this subsection from Subsection (k).  Makes a conforming
change. 

(m) Redesignates this subsection from Subsection (l). 

SECTION 2.  Amends Section 408.123, Labor Code, by adding Subsections (d),
(e), (f), and (g), as follows: 

(d) Provides that, except as provided in Subsections (e), (f), and (g),
the first valid  certification of maximum medical improvement and the
first valid assignment of impairment rating to an employee are final if
the certification of maximum medical improvement and/or the assigned
impairment rating is not disputed within 90 days after written
notification of the maximum medical improvement and/or assignment of
impairment rating is provided to the claimant and the carrier by
verifiable means. 

(e)  Authorizes the first certification of maximum medical improvement
and/or impairment rating to be disputed after the 90-day period under
certain circumstances. 

(f)  Provides that if an employee has not been certified as having reached
maximum medical improvement before the expiration of 104 weeks from the
date on which income benefits begin to accrue or the expiration of the
date of any extension under Section 408.104 (Maximum Medical Improvement
After Spinal Surgery), the impairment rating assigned after the end of the
104 weeks or after the end of the extended period under Section 408.104
(Maximum Medical Improvement After Spinal Surgery) is final if the
impairment rating is not disputed within 90 days after written
notification of the maximum medical improvement and/or assignment of
impairment rating is provided to the claimant and the carrier by
verifiable means. 

(g)  Provides that if a disputed certification of maximum medical
improvement or assignment of impairment rating is finally modified,
overturned, or withdrawn, the first subsequent certification and
assignment becomes final if it is not disputed within 90 days after
written notification of maximum medical improvement and/or assignment of
impairment rating is provided to the claimant and the carrier by
verifiable means. 

SECTION 3.  Effective date:  upon passage or September 1, 2003.

SECTION 4.  Makes application of this Act prospective.