80R13163 PB-D
 
  By: Zedler H.B. No. 1970
 
Substitute the following for H.B. No. 1970:
 
  By:  Castro C.S.H.B. No. 1970
 
A BILL TO BE ENTITLED
AN ACT
relating to workers' compensation fee guidelines and payment
adjustment factors used in conjunction with those guidelines for
certain health care services.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Section 413.011, Labor Code, is amended by
amending Subsections (a) and (b) and adding Subsections (a-1) and
(b-1) to read as follows:
       (a)  The commissioner shall adopt health care reimbursement
policies and guidelines that reflect the standardized
reimbursement structures found in other health care delivery
systems with minimal modifications to those reimbursement
methodologies as necessary to meet occupational injury
requirements.
       (a-1)  To achieve standardization, the commissioner shall
adopt the most current reimbursement methodologies, models, and
values or weights used by the federal Centers for Medicare and
Medicaid Services, including applicable payment policies relating
to coding, billing, and reporting, and may modify documentation
requirements as necessary to meet the requirements of Section
413.053.
       (b)  In determining the appropriate fees, the commissioner
shall also develop one or more conversion factors or other payment
adjustment factors taking into account economic indicators in
health care and the requirements of Subsections (a-1), (b-1), and
[Subsection] (d). The commissioner shall also provide for
reasonable fees for the evaluation and management of care as
required by Section 408.025(c) and commissioner rules. This
section does not adopt the Medicare fee schedule, and the
commissioner may not adopt conversion factors or other payment
adjustment factors based solely on those factors as developed by
the federal Centers for Medicare and Medicaid Services.
       (b-1)  In developing payment adjustment factors under
Subsection (b) for hospital fees, the commissioner shall adopt the
following payment adjustment factors to the Medicare fee schedule
to be used by insurance carriers, other than governmental entities,
in contracting with hospitals for the provision of medical
benefits:
             (1)  inpatient hospital care shall be paid at 165
percent of the Medicare base payment amount, as established by 42
U.S.C. Section 1395ww and any federal regulation adopted under that
law;
             (2)  outpatient hospital care shall be paid at 250
percent of the Medicare base payment amount, as established by 42
U.S.C. Section 1395l(t) and any federal regulation adopted under
that law;
             (3)  inpatient or outpatient hospital care that results
in billed charges in an amount greater than $50,000, excluding any
charges for the costs of implantables, orthotics, or prosthetics,
shall be paid at 75 percent of billed charges;
             (4)  blood products, implantables, orthotics,
prosthetics, and pharmaceuticals charged at an amount in excess of
$250 per dose shall be paid:
                   (A)  in addition to any amount paid under
Subdivision (1) or (2); and
                   (B)  at cost plus 10 percent; and
             (5)  air ambulance services shall be paid:
                   (A)  in addition to any amount paid under
Subdivision (1), (2), or (4); and
                   (B)  at 75 percent of billed charges.
       SECTION 2.  Subchapter B, Chapter 413, Labor Code, is
amended by adding Section 413.0121 to read as follows:
       Sec. 413.0121.  REPORT TO LEGISLATURE. Not later than
January 1 of each odd-numbered year, the division and the
department shall each prepare and submit a report to the governor,
the lieutenant governor, the speaker of the house of
representatives, and appropriate legislative committees on the fee
guidelines adopted under Section 413.011. The report must include:
             (1)  an evaluation of the fee guidelines in effect
immediately preceding the date of the report, including
consideration of any issues regarding the application of the fee
guidelines; and
             (2)  any adjustments or recommendations regarding
changes to the fee guidelines proposed to be made by statute or
rule.
       SECTION 3.  (a)  The change in law made by this Act applies
only to health care for a compensable injury that is provided by a
health care provider on or after the effective date of this Act.
Health care that is provided before that date is governed by the law
in effect on the date that the health care was provided, and the
former law is continued in effect for that purpose.
       (b)  The commissioner of workers' compensation shall adopt
the rules, policies, and guidelines required by Section
413.011(b-1), Labor Code, as amended by this Act, not later than
November 1, 2007.
       SECTION 4.  This Act takes effect September 1, 2007.