Texas lawmakers ironed out differences and passed a comprehensive workers' compensation reform bill Saturday, which Republican Gov. Rick Perry was quick to sign.
The reforms include the creation of managed-care like networks to provide medical care, instead of the previous system where workers chose their own doctor.
Joe Woods, regional manager for the Property Casualty Insurers Association of America, said the legislation contains many provisions that will help control medical costs. "The network approach will result in quality care at a reasonable cost and will return employees to work in a reasonable amount of time."
Injured workers will also see caps on weekly benefits increased by 12 percent. In addition, the newly created Office of Injured Employee Counsel will represent injured workers in rulemaking procedures and certain court actions and help guide them through dispute resolution in complicated cases.
The new system will be administered by a commissioner housed in the Texas Department of Insurance who reports to both the governor and the insurance commissioner.
The setup is the result of a compromise between House leaders who wanted the insurance commissioner to run the program and Senate leaders who wanted a totally separate administrative unit.
"The lines of authority will be a little bit murky until everyone is in place and we see how things work out," Mr. Woods said.
Gov. Perry said the legislation represents a major victory for everyone involved in the workers' compensation system. "It will give those hurt on the job the care they deserve, at a price employers can afford," he said.
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