Nonsubscription Discussed AT Senate Committee Hearing

The Senate Committee on State Affairs met yesterday to discuss workers’ compensation since the passage of House Bill 7.  HB 7 was passed during the last regular session of the Texas legislature and introduced new provisions designed to improve the workers’ compensation system.

Committee Chair Senator Robert Duncan (R-Lubbock) led the hearing, which included a brief discussion of nonsubscription. Texas Insurance Commissioner Mike Geeslin testified that nonsubscription rates are down slightly with the increase in the number of subscribing companies equating to a couple of percentage points. When asked about the affect of the new medical networks on subscription rates, Commissioner Geeslin stated that a lot of employers don’t fully understand what’s available to them with respect to the network option. “As we do a better job of getting that information out, it’s my hope that you will continue to see those trends move down.  Will we ever get to 100 or even 90 percent subscription rates?  I don’t know that remains to be seen.” 

Commissioner Geeslin stated that workers’ compensation premium rates have declined slightly from roughly $2.70 to $2.36 per $100 of payroll, which he said could lead to improvements in subscription rates.  He also added that the downward trend should continue but that another catastrophic event like the attacks on the United States on September 11^th could cause the insurance market to recoil.   

The remainder of the hearing focused on the implementation of the new law, the rulemaking process and the establishment of medical networks. While the Texas Department of Insurance has approved fifteen networks there is a growing level of frustration relating to them. Much of the frustration stems from the fact that many Texas physicians aren’t participating in the networks and the networks are concentrated in urban areas resulting in limited access to care.

A representative for the Texas Medical Association stated that she is not participating because of the hassle factor.  Workers' Compensation Commissioner Albert Betts testified that the Department of Workers’ Compensation is attempting to reduce hassles for physicians but that the division continues to experience trouble with its computer system, which was intended to expedite electronic filings.

Norman Darwin, director of the Office of Injured Employee Counsel, testified that his group has made progress. Mr. Darwin recommended that the 80^th legislature provide funding for 25 additional staff persons. Additional staff is needed for the OIEC to assist injured employees earlier in the dispute process.   

Mary Ann Vogel, the last person to testify, was injured while employed by a subscribing business in Texas.  Ms. Vogel detailed the problems she has experienced following her job-related injury, problems that have spanned several years.