State News : Texas

NWCDN is a network of law firms dedicated to protecting employers in workers’ compensation claims.


NWCDN Members regularly post articles and summary judgements in workers’ compensations law in your state.  


Select a state from the dropdown menu below to scroll through the state specific archives for updates and opinions on various workers’ compensation laws in your state.


Contact information for NWCDN members is also located on the state specific links in the event you have additional questions or your company is seeking a workers’ compensation lawyer in your state.


Texas

STONE LOUGHLIN & SWANSON, LLP

  512-343-1385

The PLN Truth
 

While we’re on the topic of proper Plain Language Notice protocol, the Appeals Panel issued Decision No. 230503 on June 12, 2023.  The case involved an injured worker who initially reported to his employer—in writing—that his injury occurred in June 2022.  The employer dutifully alerted its work comp carrier to the injury once it was reported.  The carrier, in turn, filed a PLN-1 denying the claim in full within sixty days following notice.

Thereafter, the claimant asserted that he had been mistaken about the date of his injury, that it was not June 28 but rather July 28. The Division, operating under the assumption that this was an entirely different injury, generated a new DWC number for the ersatz second claim.  

Claimant and his attorney argued that the carrier waived into accepting the July 2022 injury because no PLN-1 had been filed to combat it.  The Administrative Law Judge agreed that the carrier accepted the claim via waiver, even after Claimant testified that he never sustained an injury in June, that he had mistakenly reported the incorrect date to his employer, and that the two dates of injury were actually one and the same.  

The Appeals Panel reversed, reasoning that the carrier had disputed the claim when first alerted to it.  “Under these facts, to require the carrier in this case to again dispute the injury it had previously disputed simply because the claimant alleged a different date of injury due to a typographical error would represent an elevation of form over substance.”  


Copyright 2023, Stone Loughlin & Swanson, LLP

Who Moved My Fees?


The April 2023 edition of The Compendium outlined recent changes to the designated doctor rules, which were presumably designed to incentivize those already on the DD list to maintain their status while increasing the number of new applicants.  However, as we pointed out, the amendments omitted any updates to the reimbursement rates for DD exams, perhaps the component most to blame for the dwindling number of available designated doctors overall and certainly a reason for the dearth of M.D.s and D.O.s currently on the list.   

That oversight seems poised to change, as the DWC announced on June 26, 2023, a new set of proposed amendments to Rules 133 (General Medical Provisions) and 134 (Guidelines for Medical Services, Charges, and Payments).  Key modifications would include adjusting fees via the Medicare Economic Index (MEI) percentage adjustment factor for the period of 2009 through 2024, then annually thereafter every January 1.  Fees would be rounded to the nearest whole dollar, and a $100.00 missed appointment fee would also be permitted when injured workers neglect to attend their exams.  (More on that in a moment.)  These provisions can be found in the new Rule 134.210(b)(4).  

The DWC released a table of fee adjustment estimates (estimated because the MEI percentage adjustment factor for 2024 is not yet set) for Designated Doctor Exams, Required Medical Examinations, and treating/referral doctor impairment rating certifications.  Fees for extent of injury, disability, return to work, return to work for SIBs, appropriateness of care (RMEs only), and “other similar issues” jump from $500.00 to $640.00 per issue (again, estimated).    Maximum medical improvement issues would invite an increase from $350.00 to $448.00, while the first musculoskeletal impairment rating assessment rises from a range of between $150.00 and $300.00 to $384.00.  Fees for subsequent impairment rating areas would also increase from $150.00 to $192.00, approximately.  

New additions to some designated doctor bills will include a “Specialist Fee” of $300.00.  Specialist fees pertain to designated doctors (though not RMEs) asked to evaluate injuries itemized in Rule 127.130(b)(9)(B-I): traumatic brain injuries, spinal cord injuries, severe burns, complex regional pain syndrome, multiple fractures, complicated infectious diseases, chemical exposure, and heart/cardiovascular conditions.  

Comments on the proposed changes can be sent via email to RuleComments@tdi.texas.gov.  The DWC advises that “Chapters 133 and 134 Informal Posting” should be included in the subject line.  Comments must be received in writing by 5:00 p.m. on the still-not-random-in-the-least date of July 26, 2023.  

Now, about that “Missed Appointment Fee”…
 

Copyright 2023, Stone Loughlin & Swanson, LLP  

Seriously, WTF? (What's This Fee?)
 

As previously mentioned, House Bill 2702 would have revised portions of the Labor Code by tagging insurance carriers with an additional expense: a fee for a missed medical examination.  The bill failed to pass the Senate in May 2023, but its most dubious component has found new life in the DWC’s proposed Rule 134.240(b).  

Under the newly drafted rule, an injured worker who fails to attend an examination by a designated doctor would endure the eternal ignominy of subjecting his or her workers’ compensation carrier to an additional $100.00 fee. That’ll show ‘em!

You read that correctly—the insurance carrier would be subjected to what amounts to a fine for an AWOL claimant’s missed DD exam.  (And in case you were wondering, no, the rule does not permit an insurance carrier to take a credit for that fee from later benefits.)

This change to DD exam billing is intended, one assumes, to offset the lost time from patients and the general inconvenience experienced by doctors whose examinees are M.I.A.  However, imposing an additional fee on the insurance carrier for the injured worker’s truancy may invite challenges over the perceived fairness of the measure, especially in instances where the missed exam was requested by the Claimant or Claimant’s attorney; the proposed rule does not take into consideration the party that sought the exam.


Copyright 2023, Stone Loughlin & Swanson, LLP

Paper Cut
 

Further changes to the Administrative Code were announced on June 21, 2023. Section 55.15(6), pertaining to requirements for Compromise Settlement Agreements in old law claims, contains the following instructions, held over from the Old Law days: “all compromise settlement agreements submitted to the board must be submitted in four parts--the original must be white, the second copy pink, the third copy yellow, and fourth copy white. The forms must either be on NCR [no carbon required] paper or be submitted with carbon left intact.”  

For all future “old law” CSAs (of which there are likely to be few), system participants have finally—finally—been relieved of these onerous multichromatic paper specifications, which have been cut from the rule, allowing for submission of settlement agreements “in the form and manner prescribed by the DWC.”  All further paper-related queries can be directed here: https://youtu.be/6OlEEfvwXnA


Copyright 2023, Stone Loughlin & Swanson, LLP

Circuit Judge
 

The DWC’s new Austin-based Administrative Law Judge, Hsin-Wei Luang, started on June 26.  Judge Luang received a degree in engineering from the University of Illinois, then her law degree from St. Mary’s School of Law in 1997. She combined her legal acumen and engineering background for a career in technology, business, and intellectual property.  

Among her prior employment, Judge Luang served as senior counsel for Honda and vice-president of IP at Lone Star Circle of Care.  She owns a business & technical writing service, and since May 2021 she has used her expertise in technological and legal writing to produce a blog helping entrepreneurs start and run small businesses.  We congratulate her on accepting the position with the DWC and certainly look forward to reading her decisions.


Copyright 2023, Stone Loughlin & Swanson, LLP

A Philanthropic Topic
 

SLS partner Jane Stone will be the faculty member providing training in Texas law for WorkCompCollege.com, which recently initiated a scholarship program for Kids’ Chance recipients, a cause dear to our hearts.  Bob Wilson, a long-time supporter of Kids’ Chance chapters, and Don Abrams and Mark Pew, all of whom founded the College, have generously committed to providing the scholarships.  More information about that in the link below:  

https://urldefense.com/v3/__https://workcompcollege.com/workcompcollege-com-opens-scholarship-program-for-kids-chance-recipients/__;!!Dsthdr1F7A!GuhY24LgRy20lccPSJCHHRbdrSDrdQxZe2xF8o2jTBISh-46psashw6h59YxHt1DYycv5-daXQQ6rA2W8VkoT-rhjUI$

It always amazes us what a small and supportive community workers’ compensation system participants have established, not just in Texas, but all over the country.  We wish WorkCompCollege.com the best!  


Copyright 2023, Stone Loughlin & Swanson, LLP

Distant Dentist
 

Yet more changes to the Administrative Code.  This one involves Rule 133.30, pertaining to billing for Telemedicine and Telehealth Services.   The proposed modification adds “Teledentistry” to the list of reimbursable remote health care and incorporates the (somewhat redundant) definition from the Texas Occupations Code, Section 111.001: “ ‘Teledentistry dental service’ means a health care service delivered by a dentist, or a health professional acting under the delegation and supervision of a dentist, acting within the scope of the dentist's or health professional's license or certification to a patient at a different physical location than the dentist or health professional using telecommunications or information technology.” Billing for teledentistry services would follow applicable Medicaid payment policies.  The DWC invites feedback, again via RuleComments@tdi.texas.gov, this time by July 24, 2023.  

We were all set to mock the very concept of “Teledentistry” until we happened upon Marathon Man on Turner Classic Movies last night.  

https://youtu.be/GZayydR4DPs

If nothing else, at least teledentists can’t torture their patients remotely.  Congratulations, Teledentistry.  You win.  


Copyright 2023, Stone Loughlin & Swanson, LLP

Subtracting Insult from Injury


The Texas Workers’ Compensation Act sets forth specifically prescribed categories for grievously injured employees who qualify for Lifetime Income Benefits (LIBs), most of which are straightforward: those who suffer permanent loss of use in both eyes, both feet, or both hands, or a combination of one hand and one foot; spinal injuries resulting in paralysis of both arms, both legs, or one leg and one arm; and significant third-degree burn victims. 

However, one classification has fostered equal parts ambiguity and scorn among system participants for decades: head trauma injuries resulting in “incurable insanity or imbecility.”  The phrasing of this portion of the statute, found in Texas Labor Code Section 408.161(a)(6), is not only inherently vague (as neither “insanity” nor “imbecility” is defined anywhere in the Act), but also antiquated, relying on medical terminology established during the reign of Queen Victoria.  

At long last, the Legislature is poised to rid us of the much-maligned clause.  House Bill 2468 replaces the unfortunate “incurable insanity or imbecility” with “permanent major neurocognitive disorder.” But while the revision may be exponentially more tactful, is it any clearer?  

“Permanent major neurocognitive disorder” is not yet defined in the statute, other than to say it necessitates “occasional supervision in the routine daily tasks of self-care” and renders an employee “permanently unemployable.” What constitutes “occasional supervision” or permanent unemployability remains to be seen.  If left unaddressed in the corresponding rules the DWC has been charged with drafting, it is foreseeable that these phrases could generate as much uncertainty as those they replace.

If signed by Governor Abbott, House Bill 2468 goes into effect September 1, 2023.


Copyright 2023, Stone Loughlin & Swanson, LLP  

Burn Notice


House Bill 2468 also amends Section 408.161(a)(7) which pertains to serious burn injuries.  Previously, an injured worker would be entitled to LIBs if he/she sustained third degree burns to the majority of either both hands, or one hand and the face.  Now, third degree burns to both hands, to one hand and one foot, or to the face and either one hand or one foot can establish LIBs entitlement. 

House Bill 2468 further expands LIBs entitlement to certain first responders in the newly promulgated Section 408.1615.  Peace officers, EMTs, and firefighters (or those acting as EMTs or firefighters on a volunteer basis) who are rendered “permanently unemployable” following a “serious bodily injury” beyond those specifically enumerated in Section 408.161 may be entitled to LIBs.  

Qualifying claimants would be compelled to recertify their total unemployment to Carriers annually.    Carriers may audit the worker’s employment status periodically, but not more than once in any five-year window, unless the Carrier can show that the injured first responder’s assertion of non-employment is false.  Under such circumstances, the Carrier would be compelled to request a designated doctor to evaluate the claimant’s employability.  LIBs may be suspended if the annual certification is not accomplished, or if the first responder is employed in any capacity.  Suspension of LIBs is also codified under the new Section 408.0041(k-1).  

 

Copyright 2023, Stone Loughlin & Swanson, LLP 


The Dallas Court of Appeals Declines a Three-Way (Split)

 

In Hartford Accident & Indem. Co. v. Francois, decided May 23, 2023, the Dallas Court of Appeals spells out how to allocate a third-party settlement between the workers’ compensation carrier, injured employee, and injured employee’s attorney.  These calculations are a source of continuing confusion for some despite the plain language of the statute and the case law applying it.

The Dallas Court of Appeals’ decision also dispels the notion that the law requires the parties to split a settlement three ways:  one-third to the carrier, one-third to the claimant, and one-third to the claimant’s attorney.  This idea refuses to die despite the fact that there is no support for it in the law. As a result, some carriers still give up much more than they should.           

Janery Francois sustained a work injury for which Hartford paid her $356,669.73 in workers’ compensation benefits. Francois sued the third-party property owner of the building where she was injured and recovered $150,000. Hartford argued that under the Texas Workers’ Compensation Act’s subrogation statute, it was entitled to $95,206.03 of Francois’s $150,000 recovery.  

However, Judge Martin Hoffman, a former personal injury attorney, agreed with the interpretation of the statute offered by Francois’s attorney and found that Hartford was only entitled to $57,088.04 and that Francois and her attorney were entitled to $92,911.96.  Of this amount, $4,793.97 was for expenses and the remaining $88,117.99 was for attorney’s fees for Francois’s attorney. Judge Hoffman also awarded Francois’s attorney an additional $10,000 in fees under the Uniform Declaratory Judgment Act (UDJA) which allows the trial court to award fees that are equitable and just.

The Dallas Court of Appeals reversed Judge Hoffman’s decision and rendered judgment that Hartford was entitled to $95,206.03 of the third-party settlement. The court of appeals also found that Judge Hoffman abused his discretion by awarding Francois’s attorney an additional $10,000 in attorney’s fees under the UDJA because the award violates the Workers’ Compensation Act and is not equitable or just.

Francois’s attorney argued at trial that the award is equitable and just because Hartford refused to agree to a three-way split of the settlement which would have provided $50,000 to Hartford, $50,000 to Francois, and $50,000 to Francois’s attorney.  This approach would have resulted in Hartford recovering $45,206.03 less than it was entitled.  The Dallas Court of Appeals rejected this argument:
 

According to Francois’s counsel, the carrier, employee, and employee’s counsel “always” agree to split a settlement three ways, and he has entered into those agreements “dozens of times.”  But Francois cites no authority to support an argument that Hartford was under any obligation to reduce its lien and accept a three-way split.    


The Dallas Court of Appeals held that Hartford has a statutory right to recover its entire lien amount and it should not be penalized for asserting its rights. The court found that Judge Hoffman abused his discretion by awarding additional attorney’s fees to Francois’s attorney when “Hartford was well within its right to seek the full amount of reimbursement permitted under Chapter 417.”

Hartford Accident & Indemnity Co. v. Francois, No. 05-21-00981-CV (Tex. App—Dallas, May 23, 2023).
 

Copyright 2023, Stone Loughlin & Swanson, LLP