WC Guidelines Under Fire

The Texas Medical Association (TMA) and the Texas AFL-CIO have filed a lawsuit to prevent adoption of new workers’ compensation guidelines by the Texas Workers Compensation Commission (TWCC). The Houston Chronicle reports that the groups believe the new workers’ comp fee schedule, intended to lower the cost of such coverage, will reduce the quality of health care for injured workers. The suit, filed in Travis County state district court, aims to stop the rules from taking effect Sept. 1. According to Dr. Fred Merian, TMA president, the new fee schedule will drive many doctors out of the workers’ comp system. The fee schedule’s rates use reimbursement price controls for Medicare to lower the cost of workers’ comp claims. Many business groups, favor the new guidelines, contending that the current system overcompensates health care providers compared to group health plans and Medicare. The Texas Association of Business argues that employers in the state pay 50 percent more per claim than the national average—and that many employers will likely drop out of the workers’ comp system if rates remain unchanged. According to the Chronicle, Gov. Rick Perry came out against the guidelines, warning they could threaten the availability of workers’ comp care.

Topics Texas Workers' Compensation