House Bill 7 Resource Page
On June 1, Governor Rick Perry signed House Bill 7 into law. The bill is designed to reform the workers' compensation system by improving access to and quality of health care for injured workers, controlling costs for employers, and increasing system efficiency for all stakeholders.
Properly implemented, House Bill 7 should improve the workers' compensation system for agents, employers, health care providers, and injured workers. We have included an overview of the bill's key points below.
Use the following links to see:
- Texas Department of Insurance Workers' Compensation Health Care Network Page
- The Division of Workers' Compensation Home Page
- The Texas Department of Insurance's House Bill 7 transition page
- Senator Staples' list of key House Bill 7 provisions
- Senator Staples' list of frequently asked questions
- Governor Perry's press release on signing House Bill 7
- The adopted version of House Bill 7
Governance changes
The new law disbanded the Texas Workers' Compensation Commission (TWCC), effective September 1, 2005, and moved most of its functions to the newly created Texas Department of Insurance, Division of Workers' Compensation (DWC). Governer Rick Perry appointed Albert Betts Jr. commissioner of DWC on September 1, 2005.
To assist injured workers, the law created the Office of Injured Employee Counsel, effective September 1, 2005. The Governor appointed Norman Darwin Injured Employee Public Counsel on December 8, 2005.
By law, current TWCC rules will remain in effect until the division creates new rules to supersede them.
Workers' comp health care networks
One of the most discussed aspects of the new law is its use of workers' compensation health care networks, based on the group health model. TDI adopted rules for the networks and began accepting applications for certification beginning January 1, 2006.
The new law allows carriers to establish or contract with medical networks, and employers may choose to participate in the networks or not. Injured workers who work for employers that participate in workers' comp health care networks MUST select their treating doctor from a list of network doctors, if the employee lives within a network's designated service area.
Income benefits
House Bill 7 decreases the waiting period for temporary income benefits from four weeks to two weeks for injuries occurring on or after September 1, 2005. The law also increases income benefits for injured workers by defining the state average weekly wage (SAWW) as $540 for September 1, 2005 to September 30, 2006.
On October 1, 2006, the SAWW calculation will be 88 percent of the Texas Workforce Commission's calculation, and the TDI commissioner may increase it by rule to 100 percent.