Honorable René Oliveira, Chair, House Committee on Business & Industry
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
HB2326 by Collier (Relating to medical causation narrative reports created under the Texas Workers' Compensation Act.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB2326, As Introduced: an impact of $0 through the biennium ending August 31, 2019.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2018
$0
2019
$0
2020
$0
2021
$0
2022
$0
Fiscal Year
Probable Savings/(Cost) from Interagency Contracts 777
2018
($750,000)
2019
($750,000)
2020
($750,000)
2021
($750,000)
2022
($750,000)
Fiscal Analysis
The bill would amend the Labor Code to require an insurance carrier to reimburse a treating doctor for a medical causation narrative report in an extent of injury dispute, regardless of whether the injured employee, a representative of the injured employee, or the insurance carrier requests the report.
The bill would take effect immediately if it receives a vote of two-thirds of all the members elected to each house or on September 1, 2017.
Methodology
The State Office of Risk Management (SORM) estimates the bill would result in a biennial increase of $1,500,000 in workers' compensation claim costs, financed by Interagency Contracts with state agencies covered by the SORM.
SORM assumes the bill would result in reimbursements for 1,500 new medical causation narrative reports per fiscal year, based on a total of 1,505 similar reports requested in fiscal year 2016. SORM further assumes a cost of $500 per report based on 2016 average costs of similar reports. Multiplying these two figures results in $750,000 in new claims costs per year, or $1,500,000 during the 2018-19 biennium. SORM projects these costs will continue in future years.
The Texas Department of Insurance assumes any additional work associated with implementing the provisions of the bill could be absorbed using existing resources.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
454 Department of Insurance, 479 State Office of Risk Management