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House Bill 7
The Agent Perspective
General information
The Texas Legislature designed House Bill 7 to improve return-to-work (RTW) outcomes, enhance the access to and quality of health care for injured employees, help control costs for employers, and create a more efficient workers’ compensation system for all stakeholders.
Effective September 1, 2005, House Bill 7:
- Abolished the Texas Workers’ Compensation Commission (TWCC)
- Transferred most of TWCC’s authority to the Texas Department of Insurance (TDI)
- Established the Texas Department of Insurance, Division of Workers' Compensation (the Division) with a separate, governor-appointed commissioner
- Created the Office of Injured Employee Counsel (OIEC), which will house the ombudsman program formerly handled by TWCC
Implementing the system changes created by House Bill 7 will take several months. If you would like to receive email updates regarding implementation of House Bill 7, click here. Be sure to include all of the information requested in the body of the email. We also maintain a House Bill 7 resource page in the News section of our website.
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Nonsubscribers
Some HB7 changes may give agents better tools for marketing workers’ comp coverage over nonsubscriber policies. For example, the new cost-control efforts should make workers’ comp insurance more affordable. Because price is usually a key consideration for employers that choose to become nonsubscribers, the prospect of reduced premiums may make them reconsider their position.
In 2003, a change in the law prohibited the use of pre-employment waivers that limited the employee's right to sue a nonsubscriber employer for workplace injuries. Some employers began using post-injury waivers instead. Although House Bill 7 did not prohibit the use of post-injury waivers, it added new requirements that may limit their effectiveness.
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Return-to-work outcomes
The new law includes several positive steps to help improve outcomes and control system costs. We see many potential benefits of the new law’s repeated use of outcome-based provisions, especially the workers' comp health care network’s quality improvement program for case management and RTW outcomes. Evidence-based treatment guidelines should place a renewed focus on the quality of care delivered, appropriate treatment provided, and RTW outcomes.
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Consumer report cards
Consumer “report cards” will allow agents and their clients to objectively evaluate workers' comp health care network performance. TDI will begin issuing their findings on networks 18 months after the first network is certified. Additionally, new compliance programs will identify insurance carrier performance in the revised workers' comp system. Carriers that earn a “consistently high” rating will be able to use the TDI rating in their promotional materials.
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New regulation
The new law gives TDI the authority to regulate final prices, mandate rate or premium reductions, and impose reporting requirements; however, it does not require TDI to do so. As with many aspects of House Bill 7, the results will depend on how the new law is implemented.
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Additional resources
For more information about House Bill 7, click here or call the Texas Mutual® marketing representative nearest you.
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Austin (512) 505-6000 |
Dallas (214) 689-8400 |
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Houston (713) 316-2100 |
Lubbock (806) 798-4700 |
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