HBA-DMH H.B. 3102 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3102 By: Isett Business & Industry 3/29/2001 Introduced BACKGROUND AND PURPOSE Under current law, a workers' compensation insurance carrier is required to be reimbursed for benefits, including medical benefits, that have been paid for a compensable injury when a claimant has recovered damages in a third party action. A state appellate case, Debbie Baker, et al. v. Argonaut Insurance Company, addressed an insurance company's right to be reimbursed for workers' compensation benefits paid to an insured employee. The court found that Argonaut's recovery of benefits paid included the insurance policy's deductible amount owed by Baker's employer and, under Texas law, Baker cannot be made to pay the deductible on the employer's behalf. Thus, Argonaut's right to reimbursement with respect to the Baker's settlement proceeds did not include the right to reimbursement of the deductible amount. House Bill 3102 allows an insurance carrier to be reimbursed for benefits paid in whole or in part from the deductible amount of a deductible policy when an insured worker collects damages in a third-party action. 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. ANALYSIS House Bill 3102 amends the Labor Code to include any benefits payable in whole or in part from the deductible amount of a deductible policy in the net amount recovered by a claimant in a third-party action that is required to be used to reimburse an insurance carrier for benefits that have been paid for a compensable injury. EFFECTIVE DATE September 1, 2001.