HBA-ATS H.B. 1826 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1826 By: Hochberg Business & Industry 3/10/1999 Introduced BACKGROUND AND PURPOSE Under the Texas Workers' Compensation Act (Act), an employee injured at work may be entitled to receive lifetime medical coverage, temporary benefits replacing a substantial part of lost wages during convalescence, impairment benefits, and long-term wage replacement if the employee suffers moderately severe impairments. For permanent injuries, income benefits are allocated using the following two-step formula. First, impairment benefits are awarded in direct proportion to the extent of impairment, without regard to the actual wage loss. Second, supplemental income benefits are awarded based on wage loss, if the extent of impairment equals or exceeds 15 percent. To keep receiving supplemental benefits, an injured employee must file a statement quarterly with the employee's insurance carrier specifying that the employee has earned less than 80 percent of the employee's average weekly wage as a direct result of the employee's impairment, and that the employee has in good faith sought employment commensurate with the employee's ability to work. Failure to file a statement relieves the insurance carrier of liability for supplemental income benefits for the period during which a statement is not filed. In addition to the requirements found in the Labor Code, some insurance carriers require an injured employee to undergo a medical examination each time the employee files the statement, even when the employee's condition is not likely to have improved since the last examination. H.B. 1826 authorizes an injured employee who has received supplemental income benefits for two years to file a statement annually, rather than quarterly, if the injured employee's condition has not improved during the last year of the two-year period. This bill also prohibits an insurance carrier from requiring an employee who has received benefits for two years to submit to a medical examination more than annually if the injured employee's condition has not improved during the preceding year. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 408.143, Labor Code, to provide an exception to the general rule that an injured employee must file a statement quarterly with the employee's insurance carrier after the Texas Workers' Compensation Commission (commission) initially awards supplemental income benefits (benefits). The exception authorizes an employee, on or after the second anniversary of the date the commission initially awards benefits, to file an annual report if the employee has shown no improvement during the one-year period preceding the date of the report. Makes conforming changes. SECTION 2. Amends Subchapter H, Chapter 408, Labor Code, by adding Section 408.151, as follows: Sec. 408.151. MEDICAL EXAMINATIONS FOR SUPPLEMENTAL INCOME BENEFITS. (a) Prohibits an insurance carrier, on or after the second anniversary of the date the commission initially awards benefits, from requiring an employee who is receiving benefits to submit to a medical examination more than annually if the injured employee's condition has not improved during the preceding year. (b) Provides that this section does not apply to a medical examination required by the commission under Section 408.004 (Required Medical Examinations; Administrative Violation). SECTION 3. Effective date: September 1, 1999. Makes application of this Act prospective. SECTION 4. Emergency clause.