Rate Hearings At Issue In Texas Comp Package

By Steve Tuckey

NU Online News Service, March 25, 12:39p.m. EST?Texas representatives will vote Wednesday on aworkers' compensation reform package with only a few provisionslikely to provoke debate, according to an aide for a keylawmaker.[@@]

The measure is sponsored by House Rep. Burt Solomons,R-Carrolton, whose package includes a provision to streamline theregulatory process by abolishing the Texas Workers' CompensationCommission and moving its functions to the Texas Department ofInsurance.

The Texas Senate passed a similar measure last month, but set upa new smaller agency to handle workers' compensation matters.

Bonnie Bruce, legislative director for Mr. Solomons, said thatthe two most contentious issues are provisions calling for ratehearings in the future to determine if companies are passing alongsavings that the changes would create, and the effort of the TexasMedical Association to put a clause in the bill allowing medicaltreatment by "any willing provider."

While the bill proposes a closed network of medical providers,Ms. Bruce said three exceptions will be made for patients to usetheir own doctors in the case of terminal and acute illnesses andsurgery.

"Workers' compensation insurance needs to operate more likegroup health insurance, which does a better job of containing costsand achieving better health outcomes," Mr. Solomons said.

Ms. Bruce said the proposed legislation calls for hearings to beheld beginning in 2008 to ensure that companies are passing on thebenefits of reforms to their customers.

Joe Woods, assistant vice president for the Property CasualtyInsurers Association of America, said the insurance industryopposed the hearing provision for the most part.

"We would rather let the market work as it has since 1991, butwe recognize the reality that the legislature will demand aprovision like this," he said. Fourteen years ago the state wentfrom a promulgated rate system to the market file and use systemcurrently in force today, Mr. Woods noted.

Ms. Bruce said that lawmakers from both chambers will work overthe next several weeks to iron out differences in the twobills.