Texas Department of Insurance
www.tdi.state.tx.us - Consumer Helpline 1-800-252-3439
Advisory 98-02 Subsequent (TWCC-21) Reporting via Electronic Data Interchange (EDI) The Commission is expanding the Electronic Data Interchange (EDI) initiative to include electronic reporting for all Subsequent Report (A49/TWCC-21) Maintenance Type Codes (MTCs). The additional A49 Subsequent Report MTCs (CA, CB, FN, RB, RE, S1, S4, S5, S6, S7, & S8) for change in benefit types, reductions, resumptions, and suspension of benefits, which correspond to the TWCC-21 (A2 & A3 Blocks), are now in production. Definitions and record layouts for these codes (copyright protected material) can be found in the International Association of Industrial Accident Boards & Commissions (IAIABC) EDI Implementation Guide, Release I. Insurance carriers are required to use the IAIABC Release I Maintenance Type Codes (MTCs) for the A49 payment and claim status information in addition to the required electronic submission of the First Report of Injury.
EDI REPORTING REQUIREMENTS & IMPLEMENTATION PLAN: This EDI implementation mandate for the First Report of Injury (IAIABC Flat File or ANSI 148 record) and the Subsequent Report (IAIABC A49 Flat File or ANSI 148 record) includes:
Recognizing that a managed EDI implementation will provide greater customer service to our trading partners, the Commission is using an assigned schedule approach that most efficiently uses EDI testing and production capacity. In order to maximize the impact to the system and increase the volume of EDI, the Commission will assign dates and testing capacity to bring 50 of the largest carriers/carrier groups (by claim volume) into full EDI reporting production between July 1998 and July 1999. The schedule is based on the carrier’s 1997 claim volume and the carrier’s current status of EDI reporting. Carriers with a smaller claim volume or other carriers authorized to write workers’ compensation after 1/1/98, may be scheduled to implement EDI in the second phase, which should be after July 1999. The Commission has determined that 90 days notice is adequate for a carrier to prepare for EDI reporting using internal or external resources. Carriers should be in a state of readiness for EDI testing within 90 days of this Advisory. Carriers will be notified in writing of their individual schedule/test date and provided with new test requirements. Carriers are responsible for distribution of this schedule notice to all entities submitting electronic data on their behalf. Carriers or trading partners that want to test earlier than July 1998, or before their assigned scheduled date, may contact the Records Division, EDI Development, MS-99 or 512-440-3996 to be considered for an accelerated schedule. Each scheduled carrier should be prepared for the following EDI action/outcome: Assigned Test Date (TD): the Assigned Test Date will be indicated on the carrier’s individual schedule letter, but will not be earlier than 6/1/98. The carrier is expected to begin testing no later than 5 days after TD. Expected Approval for EDI Production Date (EPD): the expected EDI Authorization for Production Date is the Assigned Test Date (TD) +30 calendar days. EDI Benchmark Audit Date (BMA): the carrier is expected to be in production and must file at least 25% of eligible reports electronically during the 30 day period covered by the BMA (EPD +30). Subsequent EDI Compliance Audits : Subsequent EDI Compliance Audits may be conducted as early as 60 days after the EDI Benchmark Audit. The following table provides a summary of key dates, performance standards, and penalty exposure based on EDI reporting requirements, implementation dates, and potential noncompliance as outlined above.
NOTE: Requirements for timely filing of the first and subsequent reports and timely initiation of payments to the injured worker have not changed. AUDITS AND ENFORCEMENT: Audits will measure noncompliant reporting issues involving First Reports of Injury and Subsequent Reports. Noncompliance as indicated on the above EDI Action/Outcomes table may subject the carrier to penalties. Failure to achieve and maintain EDI performance requirements may subject the carrier to subsequent EDI audits until EDI standards are achieved. Performance Requirements:
Data Quality and Accuracy Requirements:
Texas Labor Code §409.005 and Rule 124.1 allow for penalties not to exceed $500 for each failure by the carrier to properly file the Employers’ First Report of Injury data by EDI. Texas Labor Code §409.021 & 409.024 and Rules 124.2 & 124.4 allow for penalties not to exceed $5000 for each failure to file Notices of Initiation, Termination or Reduction of Benefits by EDI. In addition, the Commission may assess administrative penalties of up to $10,000 as provided by §415.021 of the Texas Labor Code for business practices that allow repeated violations.
EDI EXCEPTIONS: The following circumstances require paper filings rather than EDI reporting:
The Commission specifically requests a paper copy of a document. ADDITIONAL INFORMATION/REQUIREMENTS: The structured implementation process is to ensure that the industry achieves a predictable reduction in paper reporting. Test requirements will be distributed to carriers with their assigned schedule test date via Austin Carrier Representatives. The new scheduled implementation criteria require a carrier to complete the test process within 30 calendar days from test start date. The required EDI reporting format, form, and content are defined in the Commission’s EDI agreement documents and TWCC EDI specifications. Trading partners must have the Commission Edit package, dated August 1997, on their system to decrease the need for re-transmissions due to errors or rejected transactions. Also, trading partners must use the IAIABC Implementation Guide which contains the data element dictionary, record layouts, and other EDI information. This Advisory supplements Advisories 95-05, 95-06, 97-03, and previous Commission correspondence to carriers relating to EDI implementation requirements. For assistance, documentation, specifications, and information to implement EDI, please contact the TWCC Records Division, EDI Development & Implementation, at 512-707-5895 or 512-440-3996. Signed this 13th day of March, 1998. Robert Marquette, Acting Executive Director Distribution: Return to Advisories Table of Contents |