TO: | Honorable Helen Giddings, Chair, House Committee on Business & Industry |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | HB3285 by Martinez Fischer (Relating to the regulation of Reimbursement Policies and Guidelines and Treatment Guidelines for medical care in the provision of workers' compensation benefits by the Texas Workers' Compensation Commission.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2004 | ($6,552,633) |
2005 | ($7,438,265) |
2006 | ($8,218,235) |
2007 | ($9,068,954) |
2008 | ($9,940,942) |
Fiscal Year | Probable Savings/(Cost) fromGENERAL REVENUE FUND 1 |
Probable Savings/(Cost) fromFEDERAL FUNDS 555 |
Probable Savings/(Cost) fromGR DEDICATED ACCOUNTS 994 |
Probable Savings/(Cost) fromOTHER FUNDS 997 |
---|---|---|---|---|
2004 | ($6,552,633) | ($1,460,041) | ($329,947) | ($1,245,121) |
2005 | ($7,438,265) | ($1,671,747) | ($377,789) | ($1,425,664) |
2006 | ($8,218,235) | ($1,859,544) | ($420,229) | ($1,585,817) |
2007 | ($9,068,954) | ($2,052,037) | ($463,729) | ($1,749,975) |
2008 | ($9,940,942) | ($2,249,342) | ($508,317) | ($1,918,236) |
Fiscal Year | Probable Revenue Gain/(Loss) fromAll Local Units of Government |
---|---|
2004 | ($602,380) |
2005 | ($689,725) |
2006 | ($767,207) |
2007 | ($846,625) |
2008 | ($928,028) |
The bill would require the Texas Workers' Compensation Commission (TWCC) to adopt separate workers' compensation conversion factors for surgery, radiology, pathology, anesthesia, general medicine, physical medicine, and evaluation and management services. The TWCC would also be required to apply the Medicare Economic Index (MEI-annual cost of living index) to the commercial rate for reimbursement of medical treatment, and to add no less than 20 percent costs for administrative burden. The Medicare Economic Index is estimated to grow by 2.5 percent per year.
The bill would require the Research and Oversight Council on Workers' Compensation to conduct a time-motion study on the administrative burdens associated with treating workers' compensation patients and report the results to the Legislature no later than September 1, 2004.
The bill would require the State Office of Risk Management to reassess the workers' compensation payments to the Risk Reward Program from state agencies.
The Texas Workers' Compensation Commission indicates there would be some fiscal impact associated with the implementation of the bill; however, it is assumed that these costs could be absorbed within current resources.
The Research and Oversight Council on Workers' Compensation would need $150,000 to contract for a time-motion study on the administrative burdens associated with treating workers' compensation patients.
State Office of Risk Management estimates it would incur an increase of $2,227,429 in medical costs for state agencies. The method of finance for these costs was estimated based proportionately on the method of financing for the state payroll from data supplied by the State Office of Risk Management.
Source Agencies: | 453 Workers' Compensation Commission, 478 Research and Oversight Council on Workers' Compensation, 479 State Office of Risk Management
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LBB Staff: | JK, WP, JRO, RT, DLBa, JW
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