BILL ANALYSIS

S.B. 935

By: Hancock

Business & Industry

Committee Report (Unamended)

BACKGROUND AND PURPOSE

It has been suggested that some Texas workers' compensation insurance carriers have applied state law to refuse or reduce payment for medical services provided to an injured employee by federal military treatment facilities, which are required by law to initiate federal debt collection actions against Texas injured employees. S.B. 935 seeks to address this issue by providing for the reimbursement of federal military treatment facilities under the workers' compensation system.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly granted to the commissioner of worker's compensation in SECTION 1 of this bill.

ANALYSIS

S.B. 935 amends the Labor Code to require the reimbursement rates under the Texas Workers' Compensation Act for medical services provided to an injured employee by a federal military treatment facility to be equal to the rates at which a third-party payer is required to reimburse such a treatment facility for the same services as determined under federal regulations. The bill exempts the reimbursement of such a facility's charges for those medical services from the Workers' Compensation Health Care Network Act, certain provisions of the Texas Workers' Compensation Act relating to medical benefits and medical review, and statutory provisions relating to the election of workers' compensation insurance coverage for political subdivision employees. The bill requires the commissioner of workers' compensation, not later than December 1, 2019, to adopt rules necessary to implement the bill's provisions, including rules establishing requirements for processing medical bills and a separate medical dispute resolution process for certain charges disputes. The bill applies only to health care services provided on or after January 1, 2020, in conjunction with a claim for workers' compensation benefits, regardless of the date on which the compensable injury that is the basis of the claim occurred.

EFFECTIVE DATE

September 1, 2019.