1994 Biennial Report of the Legislative Oversight Committee on Workers' Compensation

Abstract

This report has addressed the statutory requirements of the Labor Code, Sec. 405.004. REPORT, by identifying any problems in the workers' compensation system, with recommendations for commission and legislative action. We have presented an evaluation of the research conducted by the Research Center, and we have dealt with the effectiveness of the workers' compensation system to provide adequate, equitable, and timely benefits to injured workers at a reasonable cost to employers. Finally, we have made recommendations for legislative action.

In conclusion, several points must be emphasized. First, the reforms mandated in 1989 and 1991 are working. All of the early indicators point to a successful implementation of the reforms. Statistically, it has been shown that:

• costs are coming down;
• benefits are higher;
• there are fewer disputes; and
• objective information is being gathered about all components of the system.

Second, although th is report concentrates on problems, it is important to note that by and large, these problems are being addressed. The problems are raised because it is our responsibility to call them to the leadership's attention, so that monitoring will continue until solutions are put into place. For the most part, these problems are technical or administrative in nature. Problems, such as these, will require continual fine-tuning in the future.

Third, an issue that has not been discussed in this report, is the constitutionality lawsuit. The Garcia v. TWCC case is currently in the hands of the Supreme Court. The Court's decision may require further legislative changes. We have not tried to second guess how the Court will rule.

Fourth, we stress again that the system is young and immature. There is a need for more data to answer questions about the length of time supplemental income benefits (SIBs) are needed; the cost of SIBs; how many employers will return to the system because rates are lower; and what changes will be needed to enable the TWCC to carry out its mission.

Finally, in the last four years, great strides have been made to establish a system which truly benefits the employee and the employer. However, the work is not complete. We would be remiss if we suggested that nothing more needs to be done. In order to ensure that the reforms are not derailed, attention must be continually focused on the system in the coming years.

For further information, contact: PIO@tdi.state.tx.us .
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