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.