TITLE 28.INSURANCE

Part 1. TEXAS DEPARTMENT OF INSURANCE

Chapter 7. CORPORATE AND FINANCIAL REGULATION

Subchapter A. EXAMINATION AND FINANCIAL ANALYSIS

28 TAC §§7.25, 7.26

The Commissioner of Insurance adopts the repeal of §§7.25 and 7.26 concerning the relocation by a domestic insurer of its principle offices, books and records outside of this state. The repeal of the sections is adopted without changes to the proposal as published in the April 21, 2000, issue of the Texas Register (25 TexReg 3414).

The repeal of the sections is necessary to implement the simultaneous adoption of a new §7.25 which replaces the repealed sections. The new section implements the amendment of Insurance Code Article 1.28 by House Bill 3304, 76th Legislature, 1999. The department determined that a new section would be the most efficient implementation of the amendment to Insurance Code Article 1.28.

The repeal of the sections will eliminate provisions relating to the relocation by a domestic insurer of its principle offices, books and records outside of this state which are unnecessary as a result of the adoption of new provisions concerning the relocation by a domestic insurer of its principle offices, books and records outside of this state. Notification of the adoption of the new section appears elsewhere in this issue of the Texas Register.

No comments were received regarding the adoption of the repeal of the sections.

The repeal of the sections is adopted under the Insurance Code, Article 1.28 and §36.001. Article 1.28 authorizes the Commissioner of Insurance to adopt rules to implement the article. Section 36.001 authorizes the Commissioner of Insurance to adopt rules for the conduct and execution of the duties and functions of the department as authorized by statute.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 21, 2000.

TRD-200004361

Gene Jarmon

Assistant General Counsel

Texas Department of Insurance

Effective date: July 11, 2000

Proposal publication date: April 21, 2000

For further information, please call: (512) 463-6327


28 TAC §7.25

The Commissioner of Insurance adopts new §7.25 concerning the relocation by a domestic insurer of its principal offices, books and records outside of this state. The section is adopted with changes to the text as proposed in the April 21, 2000, issue of the Texas Register (25 TexReg3415).

The new section is necessary to implement the amendments made by House Bill 3304, 76th Legislature, 1999, to Insurance Code Article 1.28 and current departmental practices. Under Article 1.28, a domestic insurer that is a member of an insurance holding company system must obtain the prior approval of the Commissioner of Insurance (Commissioner) to relocate its records from Texas to another state. The legislation also added health maintenance organizations that are affiliated with other health maintenance organizations or health care providers to the persons that are subject to Insurance Code Article 1.28. The legislation further provided the Commissioner with the authority to adopt rules concerning the maintenance of records of insurers subject to Insurance Code Article 1.28, with persons that are not affiliated with the insurer under Insurance Code Article 21.49-1 (Insurance Holding Company System Regulatory Act). The adopted section sets out the procedures to be followed for an insurer to relocate its records outside the state. The section is necessary to set forth an improved procedure to be used by the department to take action on applications of domestic insurers and health maintenance organizations to move some or all of their books and records outside the state. Section 7.25(d) was changed to improve its clarity. The word "impact" in paragraphs (13) and (14) was changed to "effect." The word "related" was inserted between "other" and "information" in paragraph (19).

As a result of the adoption of the section, the department can exercise more effective and efficient regulation of insurers by having effective oversight of insurers' records that are located out of state. Examinations of insurers are more efficient when the location of records are known to the department prior to the commencement of an examination. Examination personnel can be effectively deployed to conduct the examination. Subsection (a) of the section describes the purpose and scope of the section and summarizes the procedure a domestic insurer must follow to relocate its principal offices, books and records (records). Subsection (b) defines certain terms used in the proposed section. In particular the term "eligible insurer" is defined to include all persons subject to Insurance Code Article 1.28. Subsection (c) establishes the requirement of Insurance Code Article 1.28 that an eligible insurer must notify the department of its desire to relocate its records out of state. Subsection (d) describes the information an eligible insurer is required to provide the department in the notice so the Commissioner may make an informed decision to approve or disapprove the request. Subsection (e) requires additional information that must be provided to the department in the notice when the eligible insurer intends for another person to possess and maintain the records out of state. Subsection (f) requires an eligible insurer to have a written agreement with a person who is an affiliate of the eligible insurer and who will maintain any of the eligible insurer's records out of state. Subsection (f) also requires such agreement to include certain provisions and requires the agreement to meet the standards of Insurance Code Article 21.49-1, §4(d)(2), which governs transactions between affiliates in an insurance holding company system. Subsection (g) proposes requirements and restrictions in addition to those in subsection (f), when an eligible insurer engages another person that is not an affiliate of the eligible insurer to maintain its records. Subsection (h) provides that the 30-day period established by Insurance Code Article 1.28, during which the Commissioner must approve or disapprove the request, begins to run when the department notifies the eligible insurer that the notice to relocate records is complete. Subsection (i) requires an eligible insurer that has previously received approval to move its records out of state pursuant to Insurance Code Article 1.28, and that desires to relocate those records again, to file a notice of intent to relocate records and obtain the approval of the Commissioner before relocating those records. Subsection (j) provides that an eligible insurer does not have to amend its articles of incorporation or similar organization document when it relocates its records under this section. Subsection (k) provides the Commissioner may revoke an eligible insurer's authority to maintain its records outside the state. Subsection (l) describes how sample service of process forms required by Insurance Code Article 1.28(e) may be obtained. Under the existing §7.25, which is simultaneously repealed with the adoption of this section and published elsewhere in this issue of the Texas Register, applicants are required to complete a form adopted by the department. Under the adopted section there is no adopted application form. Applicants may submit the information required by the section in a manner they consider most efficient.

No comments were received regarding the adoption of the section.

The new section is adopted under the Insurance Code Articles 1.28, 1.32 and 21.49-1 and §36.001. Article 1.28 authorizes the Commissioner of Insurance to adopt rules allowing the maintenance of books and records of a domestic insurer subject to Insurance Code Article 1.28 with a nonaffiliated person other than an agency and to allow a domestic health maintenance organization to comply with Insurance Code Article 1.28. Article 1.32 authorizes the Commissioner of Insurance to fix standards for evaluating the financial condition of an insurer. Article 21.49-1, §11 authorizes the Commissioner of Insurance to adopt rules to carry out the provisions of the article. Section 36.001 authorizes the Commissioner of Insurance to adopt rules for the conduct and execution of the powers and duties of the department as authorized by statute.

§7.25.Out of State Books and Records.

(a)

Purpose and Scope. The purpose of this section is to describe the procedure an eligible insurer must follow when it desires to relocate and maintain all or any portion of its books, records, and accounts and its principal offices outside this state at a location within the United States. To facilitate brevity, "all or any portion of its books, records, and accounts and its principal offices" will be referred to as "records" in this section. Insurance Code Article 1.28 and this section describe the standards that an insurer must meet to be eligible to relocate its records outside this state and sets forth the information an eligible insurer must provide to the department in its notice of intent to relocate records so that the Commissioner of Insurance (Commissioner) can make an informed decision to approve or disapprove the proposed relocation. The normal records relating to the business produced by an agency of an eligible insurer are not subject to Insurance Code Article 1.28. The department interprets the term "agency" in Insurance Code Article 1.28 to mean a person described in Insurance Code Article 21.02. An eligible insurer that desires to relocate its records to an out of state location must provide the information required by subsection (d) of this section. An eligible insurance company that desires to deliver possession of its records to another person located out of state who is an affiliate of the eligible insurer must also provide the information required by subsections (e) and (f) of this section. When that person is not affiliated with the eligible insurer, the person must comply with the provisions of subsections (e) - (g) of this section. Records of a health maintenance organization relating to its quality assurance program are not subject to this section.

(b)

Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

(1)

Affiliate - As defined in the Insurance Code Article 21.49-1, §2(a).

(2)

Domestic insurance company - As defined in the Insurance Code Article 1.28, §1(a).

(3)

Eligible insurer - A domestic insurance company that is:

(A)

an affiliate of an insurance holding company system;

(B)

a health maintenance organization that is an affiliate of another health maintenance organization or health care provider; or

(C)

a nonprofit legal services corporation that is an affiliate of an insurance holding company system and whose claims and daily affairs are handled under contract by a foreign insurer licensed to do a similar business in this state.

(4)

Health care provider - Is the same as the term "provider" in Insurance Code Article 20A.02(t).

(5)

Insurance holding company system - As defined in the Insurance Code Article 21.49-1, §2(i).

(c)

Notice of Intent to Relocate Records. An eligible insurer desiring to change the location of its records to a location outside this state must file with Financial Analysis and Examinations, 333 Guadalupe, Austin, Texas 78701 or P.O. Box 149099, Austin, Texas 78714-9099, Mail Code 303-1A an original and one copy of a notice of intent to relocate records setting forth the information required by subsection (d) of this section, accompanied by the required filing fee established in §7.1301(d)(18) of this title (relating to Fees). Alternatively, an eligible insurer complies with this section when it provides the department the information required by this section in an agreement with an affiliate, and such agreement has been approved or not disapproved as required by Insurance Code Article 21.49-1, §4.

(d)

Contents of Notice of Intent to Relocate Records. The notice of intent to relocate records required by Insurance Code Article 1.28 and subsection (c) of this section must provide:

(1)

the name of the eligible insurer desiring to relocate its records outside the state;

(2)

the street address of the eligible insurer's principal office or offices (if there is more than one principal office, identify the activities that are performed at each principal office; e.g., accounting, actuarial, investments, underwriting, claims, marketing, data processing, human resources and corporate matters);

(3)

the street address of the location or locations of the eligible insurer's records before the proposed relocation of records (if there is more than one location, identify the records that are maintained at each location; e.g., accounting, actuarial, investments, underwriting, claims, marketing, data processing, human resources and corporate matters);

(4)

the street address of the eligible insurer's principal office or offices after the proposed relocation of records (if there is more than one principal office, identify the activities that will be performed at each principal office; e.g., accounting, actuarial, investments, underwriting, claims, marketing, data processing, human resources and corporate matters);

(5)

the street address of the proposed location or locations of the eligible insurer's records;

(6)

a detailed description of the records that will be maintained at the proposed location or locations named in paragraph (5) of this subsection;

(7)

the anticipated effective date of the proposed relocation of the eligible insurer's records;

(8)

a description of the eligible insurer's affiliation with an insurance holding company system or health maintenance organizations or health care providers;

(9)

if the eligible insurer is affiliated with an insurance holding company system, a statement that the eligible insurer has made the necessary filings required by the Insurance Code Article 21.49-1;

(10)

if the eligible insurer is affiliated with an insurance holding company system, a statement that the eligible insurer is in compliance with the Insurance Code Article 21.49-1;

(11)

if the eligible insurer is a health maintenance organization that is not affiliated with an insurance holding company system, but is affiliated with other health maintenance organizations or health care providers, the health maintenance organization must furnish the information as set forth in §7.210 of this title (relating to Form B);

(12)

a description of any actual, proposed, or contemplated financial involvement with respect to the relocation of the records by an officer, director or employee or a person who is the beneficial owner, directly or indirectly, of 10% or more of the voting securities of the eligible insurer or affiliated insurance holding company system or health maintenance organization;

(13)

an analysis of the benefits to the eligible insurer anticipated as a result of the relocation of the records, including the effect on the location being abandoned;

(14)

a description of the effect of the relocation of the records on policyholders and claimants;

(15)

a service of process form executed by the eligible insurer (see subsection (l) of this section to obtain an example of an acceptable form);

(16)

a service of process form executed by a controlling person of the eligible insurer (see subsection (l) of this section to obtain an example of an acceptable form);

(17)

if the records of the eligible insurer will be maintained by a person other than the eligible insurer, state the name of the person who will be maintaining the records of the eligible insurer;

(18)

if a person is named in paragraph (17) of this subsection, provide the information in subsection (e) of this section; and

(19)

such other related information as the department may require so that an informed determination can be made to approve or disapprove the proposed relocation of records out of state.

(e)

Additional Information Required for the Relocation and Possession of Records with a Person Other than the Eligible Insurer. If the eligible insurer intends for a person other than the eligible insurer to possess and maintain its records, the following information must be included in the notice of intent to relocate records:

(1)

the name of the person who will possess and maintain the records;

(2)

the names of the directors, executive officers, principals or principal shareholders of the person named in paragraph (1) of this subsection;

(3)

a statement describing the person's affiliation with the insurance holding company system or health maintenance organization or health care providers named in subsection (d)(8) of this section, if any;

(4)

an explanation and description of control mechanisms in place to assure the effective and efficient reconciliation of the records to be maintained by the person with those corporate records maintained by the eligible insurer;

(5)

an explanation of how the eligible insurer will maintain direct supervision, management and control of the records that are relocated;

(6)

a copy of the agreement between the eligible insurer and the person possessing and maintaining the records. The agreement must comply with the requirements of subsection (f) of this section;

(7)

a description of the additional management reporting systems and internal controls that the eligible insurer will use relative to its arrangement with the person possessing and maintaining the records of the eligible insurer; and

(8)

a description of any existing computer link-up that will permit on-line access to the eligible insurer by departmental examiners, or an explanation acceptable to the Commissioner why such link-up would not be practical.

(f)

Agreement Between Eligible Insurer and Person to Maintain Records. An eligible insurer must have a written agreement with the person possessing and maintaining the records of the eligible insurer.

(1)

The agreement shall include:

(A)

a description of the functions to be performed by the person possessing and maintaining the records;

(B)

a provision that requires the records of the eligible insurer be under the eligible insurer's direct supervision, management and control;

(C)

a provision authorizing the department to examine, at the eligible insurer's expense, the records and operations of the person possessing and maintaining the records of the eligible insurer at the location of such records, regarding the arrangement with the eligible insurer; and

(D)

a provision requiring the person possessing and maintaining the records to fully cooperate with the department staff during an examination conducted pursuant to subparagraph (C) of this paragraph.

(2)

The agreement required by this section is subject to the standards in Insurance Code Article 21.49-1, §4.

(3)

If the person possessing and maintaining the records of the eligible insurer is not an affiliate of the eligible insurer under Insurance Code Article 21.49-1, the agreement between the nonaffiliated person and the eligible insurer must also comply with subsection (g) of this section.

(g)

Requirements and Restrictions Applicable to Nonaffiliated Person Maintaining Records. When an eligible insurer desires to have a nonaffiliated person maintain its records, there must be a written agreement between the eligible insurer and the nonaffiliated person that contains the provisions described in subsection (f) of this section and paragraphs (1) - (8) of this subsection.

(1)

Only records related to policyholder claims, policy administration and related processes may be maintained by the nonaffiliated person.

(2)

Only active claims files may be maintained by a nonaffiliated person.

(3)

Claim files, when closed, must be returned to the eligible insurer within 60 days of closing.

(4)

Copies of active claim files will be maintained by the eligible insurer at all times, unless the Commissioner's approval of the relocation of the records finds that it would not be practical and specifically waives this requirement.

(5)

Active claim files maintained by the nonaffiliated person must be provided to examiners representing the department on site within three days of request.

(6)

Representatives of the nonaffiliated person responsible for the maintenance of the eligible insurer's records must be reasonably available at the location of the eligible insurer's records when examiners representing the department are at the location.

(7)

The nonaffiliated person must be licensed by the department to perform the services contemplated by the arrangement with the eligible insurer.

(8)

A requirement that the eligible insurer must audit the nonaffiliated person at least once each 6 months to evaluate the internal controls and compliance with the agreement between the eligible insurer and the nonaffiliated person (performance audit) with regard to the records of the eligible insurer maintained by the nonaffiliated person. Such audits shall be conducted by persons who are knowledgeable in the claims adjusting process and internal controls; auditors should include representatives of the eligible insurer's internal audit department and/or the audit committee of the board of directors of the eligible insurer; and the audit reports must be reviewed by the board of directors of the eligible insurer and the nonaffiliated person.

(h)

Accepted Filing of Notice of Intent. The Commissioner may approve or disapprove the notice of intent to relocate records within 30 days after a complete notice is filed with the department. The written notice required under this section shall be considered complete and filed with the department only when all materials sufficient to allow the Commissioner to conduct an informed decision on the application, including any information subsequently requested by the Commissioner, are filed. If within 30 days after the date that the eligible insurer files its complete notice of intent to relocate records, including the applicable filing fee, the Commissioner does not request additional information and has not disapproved such notice, the notice shall be deemed approved.

(i)

Relocation of Records Approved to be Located Out of State. An eligible insurer that has relocated records out of state pursuant to Insurance Code Article 1.28 and this section and desires to relocate those records to another location, must file with the department the notice of intent to relocate records required by subsection (c) of this section. The eligible insurer may use the previously approved notice of intent to relocate records to comply with this subsection to the extent there has been no change in the information previously submitted.

(j)

Articles of Incorporation or Charter. An eligible insurer that relocates its records out of state is not required to amend its articles of incorporation, charter or other organizational document to reflect the relocation to the extent there has been no change in such documents as a result of the relocation.

(k)

Revocation of Authority to Relocate Records. The Commissioner, upon notice and opportunity for hearing, may limit or revoke the authority of an eligible insurer to maintain records outside this state if the eligible insurer or person possessing and maintaining the records of the eligible insurer fails or refuses to comply with a request to provide information as part of an examination, or if the Commissioner determines that the continued operations of the eligible insurer might be hazardous to policyholders, creditors or the general public.

(l)

Examples of the service of process form to be executed by the eligible insurer (TDI/SOP (2000)) and the controlling person (TDI/SOP-CP (2000)) under subsection (d)(15) & (16) of this section are available from the Company Licensing and Registration Division, Texas Department of Insurance, 333 Guadalupe. P.O. Box 149104, Austin, Texas 78714-9104.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 21, 2000.

TRD-200004360

Gene Jarmon

Assistant General Counsel

Texas Department of Insurance

Effective date: July 11, 2000

Proposal publication date: April 21, 2000

For further information, please call: (512) 463-6327


Part 2. TEXAS WORKERS' COMPENSATION COMMISSION

Chapter 129. INCOME BENEFITS - TEMPORARY INCOME BENEFITS

28 TAC §129.5

The Texas Workers' Compensation Commission (the Commission) adopts amendments to §129.5 concerning Work Status Reports with changes to the proposed text as published in the March 10, 2000 issue of the Texas Register (25 TexReg 1975).

After adopting current §129.5 in December of 1999, the Commission received numerous questions and significant feedback about the requirements of the rule. In an effort to resolve some of the concerns that have been raised and clarify the rule, the Commission adopts several amendments. The amendments, as adopted: clarify the report filing duties; extend the period of time that doctors have to file the report with insurance carriers (carriers) and employers; and provide doctors reimbursement for filing the report. It is expected that together, these changes will help ensure reports are timely filed which in turn will improve benefit delivery, reduce disputes, and make dispute resolution easier due to increased availability of information.

As required by the Government Code §2001.033(1), the Commission's reasoned justification for this rule is set out in this order which includes the preamble, which in turn includes the rule. This preamble contains a summary of the factual basis for the amendments to the rule, a summary of comments received from interested parties, names of those groups and associations who commented and whether they were for or against adoption of the amendments to the rule, and the reasons why the Commission agrees or disagrees with the comments and suggestions.

Changes made to the proposed rule are in response to public comment received in writing and at a public hearing held on April 18, 2000, and are described in the summary of comments and responses section of this preamble. Other changes were made for consistency or to correct typographical or grammatical errors and to address issues identified by the Commission during its reexamination of the rule while considering the input provided by the public. Changes were made to every subsection except subsection (g) of the rule as proposed and a new subsection (j) was added.

The Commission received numerous comments relating to the potential cost of reimbursing for filing the Work Status Reports and numerous comments relating to the frequency with which the report is required to be filed. Commenters also argued that the rule required too many reports to be filed. In reviewing these comments the Commission saw the opportunity to address both sets of concerns in a way which would not have a significant impact on the overall goal of encouraging communication to improve return to work. Thus the rule as proposed has been changed: to minimize the potential cost impact of reimbursing for filing the report; to reduce the number of reports that the rule will require to be filed on all claims to those which are minimally necessary to support return to work and timely initiation, termination, and reinitiation of temporary income benefits (TIBs), but to require additional reports to be filed if requested; and to provide for reimbursement to doctors who are required to file the Work Status Report. The full explanation of this reasoning can be found in response to comments that follow.

The Texas Register published text shows words that were added to or deleted from the proposed text published in the March 10, 2000 issue of the Texas Register , and should be read to determine the final version of the rule.

Note: §129.5 requires doctors to file the Work Status Report. The Commission has designated the form on which this report is to be filed as the "TWCC-73." Therefore, in the course of this preamble and the public comments and responses, the report required by this rule is referred as the "Work Status Report" and the "TWCC-73." These terms should be understood as being synonymous. The terms "report" and "form" should be understood to mean the Work Status Report unless the context clearly indicates otherwise. In addition to comments on the rule itself, the Commission received and considered public input in its revision of the Work Status Report form (TWCC-73).

Amendments to Subsection (a)

Subsection (a) is amended to clarify who is required to file the Work Status Report under this rule. The previous language stated that, in addition to a treating doctor, "a doctor to whom the treating doctor has referred the injured employee (employee) for regular treatment" is required to file the report under this rule. Questions were raised regarding what is meant by "regular treatment."

The intent of the prior language was to address the situation in which the treating doctor has referred the employee to another doctor to provide treatment. Often, this will result in this other doctor becoming the primary provider of care for the employee for a period of time during the claim. In these cases, this doctor would be in the best position to address the employee's current work status.

At the time the previous rule was adopted, the Commission rules did not contain a definition of a referral doctor. Therefore, the prior language was an attempt to explain the concept of referral doctor until a definition was adopted. Section 133.4 of this title (concerning Consulting and Referral Doctors) has now been adopted and thus it is possible to replace the original language of the subsection with a reference to the definition of "referral doctor" in new §133.4 to clarify the concept.

The filing requirements under the rule were changed to tie more directly into change in restrictions or a change in work status. Therefore, new subsections (a)(2) and (a)(3) were added which define "substantial change in activity restrictions" and "change in work status" respectively. Substantial change in activity restrictions means a change in activity restrictions caused by a change in the employee's medical condition which either prevents the employee from working under the previous restrictions or which allows the employee to work in an expanded and more strenuous capacity than the prior restrictions permitted (approaching the employee's normal job); Change in work status means a change from one of the three states listed in what is now subsection (a)(4) to another.

The language in what is now subsection (a)(4) was changed to simplify the language and to clarify that being released to return to work without restrictions is not the same thing as Maximum Medical Improvement (MMI). Commenters indicated that some doctors were estimating that the employee would not be able to return to work for 104 weeks which seemed to be a reference to the fact that the statute usually places the outer limit for MMI 104 from the date benefits accrued (with a limited exception that can result in a limited extension of MMI for certain spinal surgery cases).

Under the previous rule, when the doctor believed that the employee could not return to work in this capacity, the employee's medical condition was considered to be such that it "restricts the employee from returning to work." In the amended rule, it now says that the medical condition is such that it "prevents the employee from returning to work." It is believed that the term "prevents" rather than "restricts" is clearer.

Amendments to Subsections (b) and (c)

Although originally not proposed to be changed, changes were made to these subsections based upon comments that were concerned about doctors providing complete reports. A number of commenters related experiences with doctors filing reports which did not meet the purpose of the rule. Examples of this would be cases where doctors would refuse to put an estimated expiration date on work status, would indicate that the employee could not work at all but would not indicate why, or would indicate excessively long expirations, even for minor injuries.

Because the purpose of filing the Work Status Report is to provide needed information, it is appropriate to ensure that complete reports are filed. Further, part of the justification for providing reimbursement for the report is that the report is supposed to contain information that will improve claims management and return to work. Therefore, it is only appropriate that reimbursement be linked to "completeness" of the report.

However, if the rule simply stated that the report must be complete, there could be many different interpretations among carriers and doctors which would reduce communication rather than enhance it and would make it more difficult for doctors to file the report. In addition, doctors will be required to use a standard form for the Work Status Report (which many system participants seem to support); the requirement to use the standard form will be phased in to allow doctors time to integrate the new report into their systems. During the phase-in period, there would be no standard for completeness unless it is stated in the rule.

With that in mind the Commission expanded and consolidated the language in previous subsections (b) and (c) to better lay out the requirements of the report and what it takes to be considered complete. Subsection (b) now merely requires doctors to file the report in the form and manner prescribed by the Commission and subsection (c) identifies what information is required for a report to be complete.

Amendments to Subsection (d)

Although originally not proposed to be changed, public comment on how often the report should be filed was received which resulted in changes to the subsection. Based upon that input, the Commission revised subsection (d) to limit the frequency with which the report would be filed. The adopted version of this rule no longer requires doctors to file reports as often as once every two weeks unless the carrier requests it (or the employer requests it through the carrier). Instead, doctors are required to file the report at the initial visit, when there is a change in work status, a substantial change in activity restrictions, or on the schedule requested by the carrier. Doctors are also still required to file reports in the two situations described in subsection (f).

The reason for this change was that it was pointed out that for many injuries, there are relatively standard return to work time frames and continuously reporting that the employee was unable to return to work during a period when the employee is not really expected to return to work would be a waste of paper, time, and money (especially since the report is now reimbursable). At the same time, more frequent reporting may be appropriate in some cases, particularly those where the employee's return to work progress is slower than expected or where the carrier/employer believe that the additional reporting is worth paying for. Rather than require reports (and payment for reports) that employers and carriers don't need, the adopted rule allows the carrier (and the employer through the carrier) to request and receive more frequent reporting. This will limit the potential cost impact but will still ensure that employers and carriers can receive reports more frequently if they believe that this additional reporting is necessary, appropriate, and worth paying for.

A fuller discussion of the issues can be reviewed in the comments and responses that follow and are not duplicated here to avoid redundancy.

Amendments to Subsection (e)

Subsection (e) was amended to extend the period of time doctors have to file the report with employers and carriers. It was noted that, particularly at the beginning of a claim, the doctor may not be able to obtain carrier information within one working day of the initial examination as is currently required. Therefore, the timeframe was extended to provide more time for the doctor to obtain the necessary information. The requirement that the doctor provide the employee with a copy of the Work Status Report at the time of the examination has not been changed in the proposal. Even if the carrier and/or employer information is not available at the time of the examination, the completed Work Status Report absent that information can easily be provided to the employee at that time. The form instructions will state that the employee's copy given at the end of the examination is not required to contain the carrier and/or employer information when it is provided.

In developing the amendment, the idea of extending the filing period for the initial report but leaving the period intact for subsequent reports was considered and rejected. Although it is true that once the provider has obtained the carrier information, less time should be needed to file the report, there was concern that having two different deadlines would be confusing. Further, at this time, most of these reports will be filed by facsimile rather than electronic transmission. It may be some time before carriers have had the opportunity to identify the full effect that increased reporting by facsimile will have on their available facsimile capacity and to adjust that capacity as necessary. This also suggests that increasing the period of time for filing both initial and subsequent reports is appropriate at this time.

Based upon input, the subsection was changed to require the report to be filed with the employer every time it is required to be filed with the carrier. Having one standard for who the report is sent to, will simplify filing for doctors (just as having one due date for filing all Work Status Reports does). A fuller discussion of the issues can be reviewed in the comments and responses that follow and are not duplicated here to avoid redundancy.

Amendments to Subsection (f)

Although not originally proposed to be amended, the Commission received comments on this subsection which indicated minor confusion about its requirements. Specifically, it seems that it was not clear that the report which was referred to in subsection (f)(2) was a Work Status Report. Therefore this subsection was changed to replace the generic term "report" with "Work Status Report." In addition, language was added to make it clear that the treating doctor is expected to respond to an RME doctor's Work Status Report that indicates the employee can return to work, regardless of whether it is with restrictions or without restrictions.

Amendments to Subsection (h)

When reviewing comments on subsection (f) and (g), the Commission realized that the rule provided no guidance on filing the report with the employee if the report is filed based upon a review of functional job descriptions provided by the employer or a Work Status Report from an required medical examination (RME) doctor which indicates that the employee can return to work. In most cases the treating doctor will respond to either of these with a Work Status Report that is filled out and filed without a new examination of the employee. This would make it impossible to hand a copy of the report to the employee after the examination as the report will generally be filed. As such, subsection (h) was changed to address this situation and at the same time, changed to make it easier to follow.

Amendments to Subsection (i)

New subsection (i) provides the doctor with reimbursement for filing a complete report required by this rule. As adopted, doctors will not be entitled to reimbursement for reports which are not required by the rule unless the report is a extra copy of a previously filed copy of the report which is being provided because it was requested by or through the carrier. The subsection was also amended from what was proposed to clarify that providing an extra copy of a report in response to a request from an employer, carrier, or their agent is reimbursable. Employers and carriers should provide copies of their report to their agents in order to reduce the number of requests for extra copies that doctors receive. Repeated telephone requests for copies of previously provided documentation and reports is a common complaint from doctors' offices.

In the December 1999 preamble to the adoption of previous §129.5, the Commission indicated that the Work Status Report would not be separately reimbursed. However, as discussed in response to comments, the Commission has reconsidered reimbursement for completion and filing of the Work Status Report and believes reimbursement for filing this report is appropriate at this time.

The successful implementation of this new reporting mechanism will help ensure that benefits are timely initiated and terminated and help reduce system costs by increasing communication between carriers, employers, and employees regarding return to work opportunities. Providing reimbursement for what should be valuable information will provide an additional incentive for filing the report as required and, as a result, benefit the system as a whole.

Reimbursement for completion and submission of the Work Status Report is set at $15, in part, because this is consistent with reimbursement for other required reports. The Commission has received suggestions that the report be reimbursed at a significantly higher level than other reports traditionally have been. Some of the reasons that these suggestions have been made were due to the mistaken belief that reporting on the employee's work status will require a more thorough examination, possibly even a functional capacity examination. Work status reporting is designed to be based upon the doctor's experience and judgment and does not require the kind of testing that functional capacity and impairment rating examinations do. Work status reporting is intended to improve communication and ensure that return to work remains an issue at the forefront of a workers' compensation claim. More involved examinations are only expected to be needed on more serious injuries, particularly those that have resulted in the employee being off work a very long period of time.

The issue of reimbursement (whether there should be reimbursement, under what circumstances reimbursement might be appropriate, and how much the reimbursement should be) was the subject of the most comments. A fuller discussion of the issues can be reviewed in the comments and responses that follow and are not duplicated here to avoid redundancy.

In addition to providing for reimbursement, language was added to the subsection to address how doctors are to bill for these reports. The billing instructions require doctors to identify what type of report was provided and why it was provided. For years, the Commission has received complaints from health care providers who indicated that carriers constantly contact them requesting reports or information in excess of those required by rule or requesting a provider send another copy of a previously provided report. This is despite the fact that the Commission has for years told carriers that they are responsible for providing copies of reports to their staff and agents. By including separate billing modifiers for different reports, the Commission will be able to monitor this activity as it relates to the Work Status Report and will also be able to determine how much of the cost associated with reimbursing the Work Status Report is within the carriers' control, meaning what percentage of the total costs are associated with carrier requests rather than the rule's minimal requirements.

New Subsection (j)

Although not in the original changes proposed to this rule, a new subsection (j) has been added for clarification purposes based upon public comment. The issue relates to whether RME doctors are required to file Work Status Reports. §126.6 (relating to Order for Required Medical Examinations), already required RME doctors to file Work Status Reports under certain conditions and referred the doctors to §129.5. Because more doctors are likely to be familiar with §129.5 than 126.6, new subsection (j) was added to reference rule 126.6 so that RME doctors would be aware of their responsibilities for filing Work Status Reports.

Comments that indicated support for the amendments were received from the following groups: Dr. Albert M. Kincheloe's office; Harris Methodist Fort Worth Occupational Health Program; Brasseur Chiropractic; Harris Occupational Health; Dr. James E. Butler's office; Dr. Bruce R. Beavers' office; RSK Co.; Dr. William Lowe's office; Naman, Howell, Smith & Lee; Dr. Pablo Garza's office; TDMHMR Lufkin State School; Southwest Medical Examiners; Dr. Robert Allred's office; Orthopaedic Associates of Corpus Christi; Concentra Health Services; Scott & White; Orthopaedic Associates of North Texas; Pass & Seymour/Legrand; Professional Emergency Service Association Corporation; Dr. Barry L. Zindel's office; Garland ISD; and Texas Orthopedic Administrators Association.

Comments that indicated general opposition to one or more of the proposed amendments were received from the following groups: Health Texas; Consolidated Freightways; Lockheed Martin Aeronautics Company; Flahive, Ogden & Latson; Hammerman & Gainer, Inc.; Texas Workers' Compensation Insurance Fund; American Insurance Association; Texas Association of Business & Chambers of Commerce; and The Zenith.

Comments that indicated both support for some of the amendments and opposition to other amendments were received from the following group: Insurance Council of Texas.

The Commission also received comments that indicated support for or opposition to the amendments from a number of individuals who did not list what groups or associations they were affiliated with. The majority of these individuals indicated support for the amendments.

In addition to comments supporting and/or opposing the amendments, many of these commenters provided suggestions for other changes to the rule and, in some cases, provided input that was not directly within the scope of the rule itself.

Comments supposedly related to §129.5 were also received from people who did not actually comment on the rule or the amendments but did raise issues that were related to the TWCC-73 form itself: Huguley Occupational Medicine; Nacogdoches Neurosurgery, P.A.; Pathfinder Consulting; Physical Medicine & Rehabilitation Associates; Dr. Melburn K. Huebner's office; Center for Orthopaedic Specialties, P.A.; Argonaut Insurance Southwest; Good Shepherd Medical Center, Longview; and Brando Chiropractic. The Commission considered this and other public input in its revision of the Work Status Report form but did not address the comments here because they are unrelated to the adoption of amendments to the rule itself.

GENERAL COMMENTS

Comment: Commenter indicated that although doctors in the commenter's office have resisted the TWCC-73, the office staff was happy to see it: "They hope to see phone calls reduced because of it."

Response: The Commission agrees. One of the expected benefits of the rule will be a reduction in calls to doctors' offices by carriers and employers attempting to obtain work status or disability information.

Comment: An employer commenter, who is also a certified self-insurer, expressed general agreement with the intent of §129.5: "The goal of returning an employee to work is often overlooked by Treating Doctors and the use of the TWCC-73 is an appropriate method to focus that attention" and commended the Commission on its efforts to assist the employees and employers in facilitating a safe and early return to work but indicated that there were several areas of the rule that could be improved. An insurance carrier commenter agreed and expressed the belief that if health care providers complete and submit the form on a timely basis, it could have a positive effect on employees and system costs by encouraging additional opportunities for modified duty or potentially more timely notification of the ability to return to work.

An insurance association commenter complimented the Commission and its staff "for their hard work in developing and implementing the return to work program. The return to work program that TWCC has implemented will result in further reduction of costs associated with income benefits." The commenter also opined that "the return to work program is essential in meeting the mandates of the Texas Legislature to reduce the costs associated with the Texas Workers' Compensation system and providing for a program that encourages and assists injured employees with returning to work." A commenter from the health care provider community expressed the belief that the Commission had done a good job with the proposed changes. An employer commenter who is also governmental entity indicated that "this is an important rule so we can get our employees back on light duty and then back to work as soon as possible."

Response: The Commission agrees. Timely return to work is an important part of the system and is one of the goals of the Workers' Compensation Act. Improvements to return to work help reduce system costs and help limit the impact that an injury or illness has on an employee's long term earning capacity.

OVERVIEW COMMENTS RELATING TO REIMBURSEMENT OF THE REPORT

The Commission received numerous comments relating to the proposal to allow reimbursement for the Work Status Report. The vast majority of commenters indicated support for the proposal. One commenter suggested that if the form does not become reimbursable, then he would have to raise the level of office visits to cover the cost of completing the form (which as discussed below is inappropriate).

Many of the commenters indicated that they believed that $15.00 was appropriate reimbursement although a number of them suggested that the proposed reimbursement level was too low. In addition, a number of commenters indicated that the report should not be reimbursed at all and several commenters provided alternate reimbursement suggestions.

As noted, based upon these comments and other comments relating to the frequency with which the report must be filed, the Commission has made changes to the rule designed to minimize the potential cost impact of reimbursing for filing the report; to reduce the number of reports that the rule will require to be filed on all claims to those which are minimally necessary to support return to work and timely initiation, termination, and reinitiation of TIBs, but to require additional reports to be filed if requested; and provide for reimbursement to doctors who are required to file the Work Status Report. The full explanation of this reasoning can be found in response to comments that follow.

COMMENTS OPPOSING REIMBURSEMENT

Although the vast majority of commenters favored some form of reimbursement for the report, there were a number of commenters who opposed reimbursement (more than 3 to 1 were in favor of reimbursement). There were a number of reasons given for why the commenters opposed separate reimbursement for the form. The following comments oppose reimbursement as proposed.

Comment: Commenters opined that the preamble did not state reasons for the proposed reimbursement and were concerned that this represented a reversal from the Commission's position in the original adoption of the rule.

Response: The Commission agrees in part. The addition of reimbursement for filing the Work Status Report represents a change from the Commission's original position as contained in the preamble for adoption of the previous §129.5, which was published in the Texas Register on December 17, 1999. By proposing the amendments to §129.5, the Commission invited those in the system to provide input as to why the Commission should or should not allow for reimbursement for the Work Status Report. Reviewing this input has helped the Commission consider additional points and resulted in a change in policy.

Comment: Several commenters stated that the cost of filing the report was already covered in the office visit reimbursements by the Medical Fee Guideline and quoted a comment and response from the adoption preamble to previous §129.5 as an indication that the Commission agreed. The following was the comment and response quoted:

"[Comment from the preamble for Adoption of Chapter 129, which was published in the Texas Register on December 17, 1999]: [Commenters] noted that the rule does not discuss reimbursement for filing the Work Status Report. [Commenter] thought that billing for the report on a HCFA-1500 would be grossly inefficient and suggested that $5.00 be added to the reimbursement for an office visit. Another [commenter] suggested that §129.5 be changed to reference a $15 per report reimbursement because 'the development, data entry and submission of these reports involve the same type of costs associated with completing other TWCC reports . . . which is consistent with the reimbursements for the TWCC-69 and the TWCC-61 and 64 which this new form is proposed to take the place of.'

[Response from the preamble for Adoption of Chapter 129, which was published in the Texas Register on December 17, 1999]: The Commission currently has a rule development team reviewing its Medical Fee Guideline and expects to recommend amendments to that guideline. These comments have been forwarded to that group for their review. The evaluation of the appropriate level of reimbursement for these reports, as with evaluation of the appropriate level of reimbursement for the office visits themselves will be performed by this group.

However, it may be several months before a new fee guideline is adopted by the Commission and so staff reviewed the current reimbursement system in place and the premises on which it was based.

According to the preamble to the current Medical Fee Guideline, the reimbursement levels for evaluation/management codes (office visits) were calculated with consideration given to the fact that the workers' compensation system places an additional administrative burden on doctors. Specifically, the Commission noted in that preamble that these reimbursement levels were recalculated using the conversion factor for a higher percentile in order to address the additional administrative burden and the concern that if reimbursement levels did not account for the additional burden, primary care doctors would leave the system.

The type of report that this rule requires the doctor to file is an example of the type of additional administrative burden that the workers' compensation system places on doctors. However, it should be noted that even in nonworkers' compensation claims many doctors provide patients with modified duty slips. In addition, this report should be relatively easy to complete and the information required in the report is the type of information which doctors should already be collecting on a regular basis during office visits. Therefore, during this intermediate period between the effective date of this rule and the expected adoption of a new fee guideline, additional reimbursement for this report does not appear to be warranted. Although the current medical fee guideline was not developed with the Work Status Report in mind, it was developed with the expectation that providing care in the workers' compensation system carries additional administrative requirements of which this type of report is one.

Further, considering that one of the legislative goals of the workers' compensation statute is the quick and safe return to work of employees injured on the job and the fact that the system places primary responsibility for accomplishing that goal on the treating doctor, this type of reporting should have been happening in the system all along. Indeed, it appears that in many cases it has been occurring in a variety of ways. As indicated by another [commenter], many doctors created their own forms to report the information on a regular basis and those that did not, often ended up reporting it anyway by telephone when the carriers called for work status information.

Therefore, pending the amendment of Medical Fee Guideline, in which this issue may be revisited, filing of the Work Status Report will not be separately reimbursed. A new Medical Fee Guideline may or may not change this."

Commenters suggested the Commission should evaluate the reimbursement levels for office visits to determine whether they do or don't include the cost of completing and filing reports such as the Work Status Report and if they do not, then to correct that in the Commission's Medical Fee Guideline. The commenters opined that since the report is filled out at the time of the examination and is provided to the employee at that time as well, the cost of completing the report should be included in the cost of the examination: "The report, which is completed after an injured employee is examined and seen by a doctor, is part of the doctor's duties to document the condition, progress, and work status of the injured employee. Doctors must bill for the examination of the injured employee utilizing the proper evaluation/management code set out in TWCC's 1996 Medical Fee Guideline . Insurers believe that doctors are already adequately reimbursed for office visits and tasks associated with office visits." Another commenter expressed concern that separate reimbursement would amount to "[promulgating] fee 'unbundling' by rule."

Response: The Commission agrees in part and has followed the commenters' suggestion that current reimbursements for office visits be reevaluated to see if they include consideration for the cost of filing reports such as the Work Status Report. As a result of this review, which was based on input from other commenters and review of the rules in existence prior to and after the adoption of the 1991 and 1996 Medical Fee Guidelines, it does not appear that reimbursement levels for office visits that are contained in the current fee guideline include the cost of filing reports such as the Work Status Report.

Section 133.106 (relating to Fair and Reasonable Fees for Required Reports and Records) provides that required reports such as the Initial Medical Report (TWCC-61) and the Specific and Subsequent Medical Reports (TWCC-64) were reimbursable at a rate of $15 per report. This rule was effective January 24, 1991. Later the Commission passed its first Medical Fee Guideline which was effective August 1, 1991. This fee guideline did not repeal §133.106 and indicated that system participants were to "see rules" for reimbursement issues associated with reports. It does not seem that this was an oversight because the Commission adopted amendments to the guideline effective December 11, 1991 which did not make any change to the report reimbursement.

While the adoption preamble to the 1996 Medical Fee Guideline did indicate that the evaluation and management reimbursement levels were raised from what were proposed in consideration of the fact that the workers' compensation system places an additional administrative burden on doctors, it appears that this additional administrative burden did not include filing required reports such as the TWCC-61 and the TWCC-64 because they were still reimbursed separately. An example of the type of burden that is included in these reimbursements is that treating doctors are required to review all other doctors' certifications of maximum medical improvement and impairment ratings. If the administrative burden the preamble referred to included reports such as the TWCC-61 and the TWCC-64, then the adopted version of the fee guideline would have also included language which exempted these reports from §133.106. To the contrary, the fee guideline still referenced reimbursements for filing reports and provided billing instructions for seeking such reimbursement. Therefore, it appears that the administrative burden to which the 1996 preamble was referring related to other burdens such as the duty of the treating doctor to coordinate medical care among multiple providers and ad hoc reports rather than required reports such as the TWCC-61 and TWCC-64.

It should also be noted that the 1996 Medical Fee Guideline predates the concept of a formal Work Status Report by several years. This report represents a new reporting requirement which provides valuable information to employees, employers, and insurance carriers. Though designed to be as simple as possible to fill out, the TWCC-73 form, which is to be used by doctors filing Work Status Reports, still takes some work to fill out and file because it focuses on different information than prior required reports and because it will be filed more quickly.

Regarding the suggestion that the Commission should "correct" the Medical Fee Guideline if the current reimbursement levels don't include the Work Status Report, that would require a separate amendment of the guideline. Although it would be possible to do so, the Commission has, for now, opted to reimburse doctors for filing the Work Status Report through §129.5.

The Commission disagrees that providing for a separate reimbursement for the Work Status Report amounts to unbundling because, as noted, the Commission has historically allowed doctors to be reimbursed for some reports separate from the office visit and because the Commission does not currently believe that filing reports such as the Work Status Report is part of the office visit. The fact that the report is filled out at the time of the examination does not necessarily make it part of the examination for reimbursement purposes. If doctors were to bill higher office visit levels to try to recoup the time and expense for filling out and filing the Work Status Report, it would be a form of upcoding, which is impermissible and which would have a far more serious impact on medical costs than the $15 that this report will be reimbursed, because the difference in reimbursement between the different level office visits is often more than $15.

Further, although the Commission anticipated that filling out the Work Status Report would be relatively simple, it appears there are other issues associated with filing these reports which were not fully accounted for in the previous version of the rule. The response to the following comment goes into more detail on this point.

Comment: Commenter suggested that if the Commission insisted on providing a reimbursement fee that "it should be no more than a one time charge for the initial set up." The commenter's greatest concern was that reimbursement for the report "will create a lot of opportunity for abuse by those physicians that are already abusing the system. It will be seen as a billing opportunity and will be issued on a biweekly basis for as long as treatment can be extended." The commenter suggested that the "overwhelming majority of physicians are well intentioned and would not abuse it. However, the rule must protect against the problematic few, not the majority."

Response: The Commission agrees that it needs to protect the system from unnecessary increases to medical costs but does not support the suggestion that only the initial report be reimbursed. Other commenters have correctly pointed out that the way this form is filled out and filed represents a major change from the way forms have been filled out and filed in the past. The form contains blanks for follow-up appointment information which is information some employers and carriers have indicated they are interested in. This information is not generally available during the examination when the doctor is going over the report with the employee, because follow-up appointments have not yet been set. This means that after partially filling out the form (i.e. putting information on work status and, if appropriate, activity restrictions), the form will be sent back to the "front office" to fill out the additional information (i.e. follow-up information).

Another major change is that the report must be completed by the end of the examination to be provided to the employee. This means that doctors will not be able to use transcription services to fill out the reports. Further, because this report is required to be filed with the carrier much faster than other required medical reports have traditionally been required to be filed (and since it is filed with another party: the employer), doctors have far less room for error or delay in filing the report than in the past.

The means of filing the report is different than the method in which other required reports have traditionally been filed. In most cases, the Works Status Report is required to be filed by facsimile or electronic transmission. At the moment, this will generally mean that most doctors will be filing the report by facsimile because most doctors, employers, and carriers have not yet set themselves up to send and receive required reports such as the Work Status Report electronically. Filing by facsimile will, at times, involve long distance charges. In addition, regardless of whether the reports are filed by facsimile or electronic transmission, the doctor needs to obtain either the facsimile number or email address of the employer and carrier. Doctors report that they have been experiencing problems doing this.

The differences between the Work Status Report and other reports and the costs associated with those differences continue past the initial filing of the report. Therefore, it is not appropriate at this time to limit reimbursement to the initial filing.

Regarding the commenter's concern about abuse, the Commission is concerned about abuse by any parties in the system. However, in developing this rule, the Commission assumes that the vast majority of system participants operate in good faith in the system and that the few abusers should be dealt with through other processes. Because the Commission believes that the filing of this report deserves reimbursement, to deny that reimbursement to the many, to prevent abuse by the few is not warranted.

As noted, however, the Commission is concerned about the potential impact reimbursing this report would have on the system and, as discussed in response to other comments, has adjusted the frequency of filing the report to limit reimbursement of the report to those reports which are minimally necessary to enhance return to work and timely initiation, termination, and reinitiation of TIBs. Filings beyond this minimal level are required and will be reimbursed if the filings are at the request of the carrier or the employer (who makes the request through the carrier). These changes will reduce costs associated with these reports while allowing carriers and employers who believe additional reporting is necessary and appropriate on an individual claim to ask for and receive the additional reports (though they have to pay for the requested reports). The reimbursement for requested reporting beyond the minimums required by the subsections (d)(1), (d)(2), and (f) of the rule will impact medical costs. However, this impact will be in the control of the carrier and employer. Therefore the reimbursement should serve as an incentive to limit additional reporting to the cases where it is truly appropriate.

Comment: Commenter stated "the form is designed, according to the Commission, to be simpler and easier to fill out [than] existing [forms] required from providers. Why then is the fee set the same as the other referenced forms? It would seem the Commission is at odds with itself with respect to the charge as a part of the regular office visit."

Response: Though designed to be as simple as possible to fill out, the TWCC-73 form, which is to be used by doctors filing Work Status Reports, still takes some work to fill out. In addition, unlike other forms, The Work Status Report is required to be filed with the carrier, the employer, and employee and, in most cases, is required to be filed by facsimile or electronic transmission. As indicated in a prior response, the Commission is not at odds with itself as to whether the cost of filing a Work Status Report is included in the reimbursement levels for office visits but rather, has reconsidered and changed its position based upon current input received.

Comment: In support of the idea that filing the report should be included as part of the office visit one commenter offered the following: "During a routine workers' compensation office visit, health care providers will: assess an injured employee's ability to work through the examination and history of the injured worker; document the results by completing the 'return to work' form; and, consult with the injured employee and provide the injured employee with a copy of the completed 'return to work' form. These 'office visit' activities are consistent with the American Medical Association's (AMA) evaluation and management description for office visits.

The AMA's description states, in part: '. . .an office visit encompasses a history, examination, medical decision making, counseling, coordination of care, nature of presenting problem, and time. . . The office visit includes both face to face time (history, exam, and counseling) and non face to face time (reviewing records, tests, arranging for further services, and communicating further with other professionals and the patient through written reports and telephone contact).'"

Another commenter added: "The Doctors should have always gone through this thought process when they comment regarding work status on the current medical report forms, and the common "off work" slips. Therefore, this is not extra work, it is merely a different means/form to document what was already being done. As such, the doctor time/expense has already been factored into the fee guideline for reimbursement for the office visit."

Response: The Commission disagrees. Although some of the activities necessary to be able to complete a Work Status Report are included in an office visit, completion and filing of the Work Status Report is a workers' compensation requirement. Further, the Work Status Report requires a more detailed explanation of the work restrictions or justification for keeping the employee off work entirely than most doctors have provided in the past. The fact that the report is filed with three parties and is required to be filed by facsimile or electronic transmission, represents a burden to doctors not previously considered in setting office visit reimbursements.

Comment: Several commenters asked that the Commission consider the potential impact that reimbursement for the form would have on medical costs. Included were estimates that the proposed reimbursement of $15.00 per report filed in accordance with the rule would have a net increase of ten million dollars (this was a net calculation because of the savings offered by the elimination of the TWCC-61 and TWCC-64 forms that previously were passed by the Commission): "TWCC staff cited a figure of [seven] million dollars in FY 98 for reimbursement of the TWCC 61 & 64. The TWCC 61 & 64 reports are each filed once at a system cost of [$30.00]. If the proposed reimbursement is approved, the maximum number of reports filed (5) could raise single case totals to [$75.00] and a system total of more than [17] million dollars." "While insurance companies would no longer pay for the Initial, Subsequent, and Specific Medical Reports, there would still be a system cost increase of approximately [ten] million dollars for the proposed change to §129.5. The Texas workers compensation system cannot afford any additional increase in medical costs."

One commenter pointed out that "treating doctors are the only health care provider who, by rule, can prepare and be reimbursed for the Initial, Subsequent, and Specific Medical Reports. §129.5 allows both the treating doctor and all referral doctors to prepare and submit the report and be reimbursed." Further the commenter stated that the "cost of medical benefits in the Texas workers compensation system has risen 83% since 1993. Data from the National Council on Compensation Insurance (NCCI) indicates that the average expected medical costs per claim in Texas exceeds the national average by almost 80%. After reviewing data received from the TWCC, the NCCI, and two large insurance carriers, the Research & Oversight Council on Workers Compensation (ROC) concluded that the medical costs for both indemnity and medical claims in Texas are higher than the average median costs for other states.

The increasing costs of medical treatment in the Texas workers compensation system is of such concern that the Texas Legislature passed House Bill 3697 which, in part, directed the ROC to conduct a study to identify the reasons for the drastic increase of medical costs. The [commenter] believes that TWCC should be looking for ways to decrease system medical costs. The inclusion of provisions for reimbursement of the form TWCC-73, Work Status Report, in §129.5 will not cut medical costs in the workers' compensation system but rather have the opposite effect of driving costs up."

Response: As noted, the Commission is concerned about the potential impact that reimbursing this report would have on the system and, as discussed in response to other comments, has adjusted the frequency of filing the report to limit reimbursement of the report to those reports which are minimally necessary to enhance return to work and timely initiation, termination, and reinitiation of TIBs, and those requested by or through the carrier.

Under this approach, reports will generally be limited to an initial one at the beginning of treatment and then an additional report when there is a change in work status or if the employee's activity restrictions substantially change (except for the reports required under subsection (f) in response to the employer's functional job descriptions or an RME doctor's Work Status Report that indicates the employee can return to work). This will result in reporting (and thus reimbursement) requirements that are very similar to some of the TWCC-61 and TWCC-64 filing duties. In fact, the reporting requirements should be slightly less since doctors will not be required to file a report once every 60 days as they were with the TWCC-64. As such, the costs associated with reimbursing the minimally required reports should be offset by the savings experienced by eliminating the TWCC-61 and TWCC-64.

However, the Commission also recognizes there are employers and carriers who may wish to receive work status information on a more regular basis. Rather than require doctors to file extra reports on all claims (which would be too often on many claims), the Commission believes that carriers and employers should evaluate their claims and determine whether additional information is worth paying additional reimbursement for. If so, the carrier will be able to request additional reports from the doctor who will be required to provide the report as requested (the employer can request additional reports through their carrier) and the carrier will be required to reimburse the doctor for the requested reports.

Filings beyond the minimal level will only be reimbursed if the filings are at the request of the carrier or the employer (who makes the request through the carrier). These changes will greatly reduce the costs associated with the reimbursement of the Work Status Report as proposed while allowing carriers and employers who believe additional reporting is appropriate on an individual claim to ask for and receive the additional reports. Though the requested reports will represent a cost to the system, this will be a cost which carriers and employers can choose to avoid or minimize by ensuring that they only ask for additional reports when they are truly needed. Carriers and employers may wish to do this by focusing their additional attentions on those claims which appear to be in danger of exceeding standard return to work expectations.

Comment: Commenter disagreed with language in the preamble for the proposed amendment of §129.5 which stated that "[p]roviding reimbursement for what should be valuable information will provide an additional incentive for filing the report ..." and argued that the "failure on the part of a doctor to file the report constitutes a violation of Rule 129.5. A doctor who fails to comply with a TWCC rule commits an administrative violation and may face financial penalties. The possibility of a penalty based upon the failure to comply with Rule 129.5 is the actual incentive for filing the report by a doctor."

Response: Although the Commission agrees that enforcement action such as issuance of penalties can help improve compliance and thus avoiding penalties can serve as an incentive to remain in compliance, it is more efficient to utilize market forces to provide incentives for remaining in compliance than it is to issue penalties. Voluntary compliance is the preferred outcome because it allows the Commission to focus its compliance efforts on serious violations and abusers. Further, because the Work Status Report will help meet one of the statutory intents (speedy return to work), it should be reimbursed and such reimbursement will improve acceptance of the new reporting requirement thus improving compliance.

Comment: A number of commenters that generally opposed reimbursement for the report did indicate that they supported reimbursement under limited circumstances. Specifically, the commenters noted that filing the work status report in response to an required medical examination (RME) doctor's release to return to work and filing the report in response to receiving functional job descriptions from an employer hoping to make an offer of employment at modified duty (as required by subsection (f) of the rule), go beyond the treating doctor's traditional duties and warrant reimbursement. It was also suggested that doctors should be reimbursed when providing a report in response to a special request.

Response: As indicated in response to other comments, the Commission believes that any report filed as required by this rule, including those required in response to a request by the employer or carrier should be reimbursed. Therefore, the Commission disagrees with the suggestion that doctors should only be reimbursed when providing a copy of the report in response to the employer's functional job descriptions, in response to an RME doctor's Work Status Report that indicates that the employee can return to work, or for special requests.

Comment: In response to opposition to reimbursement for the report expressed at the public hearing, a commenter offered a compromise proposal that would allow for reimbursement of the form but limit the increase in costs by allowing the initial report to be reimbursed and any subsequent report which reports a change in work status. Under this compromise, subsequent reports that simply report that the employee's work status had not changed would not be reimbursed since the report would be easier to fill out.

Response: The Commission agrees in part. However, as discussed in response to other comments, rather than require doctors to file reports which are not reimbursed, the Commission has revised the rule to reduce the frequency in which the report is required to be filed (and thus reimbursed). Further, at this time, the Commission believes that there will be costs associated with filing this report which doctors should be reimbursed for even when the employee's work status and activities restrictions have not changed.

COMMENTS SUPPORTING REIMBURSEMENT

The following summarizes the comments received supporting reimbursement including those comments suggesting that the reimbursement level should be higher than $15.00 (recommending anywhere between $20.00 and $200.00). Some of those that indicated that the reimbursement level should be higher than $15.00 and those who indicated support for the $15.00 reimbursement did not provide any reason for their position; the others mostly cited one or more of the following as their reasons for their positions:

A) Some commenters felt that there is more time and trouble in filling out the Work Status Report than other medical reports because it is more complicated.

B) Some commenters felt that the process for filing the form is more complicated because the form has space on it for follow-up appointment information which means that the report requires moving back into the "front office" for scheduling before being filed and because the report has to be faxed or transmitted electronically (which may involve long distance charges). This then "requires not only the doctor's time but also involves at least one other employee to stop whatever it is they are doing to fax a copy of this at the time of the visit which means we must have additional personnel hired to handle the form."

C) The time frames and frequency for filing the report are much tighter than other reports such as the TWCC-69.

D) The Commission needs to remain consistent with reimbursement for other medical reports.

E) The current reimbursement level for medical reports ($15.00) was set in 1991 and the current levels of reimbursement for office visits were set in 1996 and are no longer adequate. Further, the reimbursement levels for office visits, though increased from what was proposed still were well below the level that the majority of doctors charged for office visits in all payor systems.

F) There may be significant programing costs with implementing the Work Status Report.

One commenter noted that although medical costs in Texas workers' compensation are higher than the medical costs in other states' systems, the commenter pointed to utilization, particularly abusive utilization, as the reason for the high costs, not the individual reimbursement levels. The commenter indicated that although a fee schedule is an appropriate means to limit costs, the fees should not be at so low a level as to cause providers to leave the system and suggested that without reimbursement for the report, doctors whose business does not focus primarily on occupational medicine, particularly rural doctors, might choose to leave the system, thus reducing employee options for seeking medical care. The commenter also pointed out that the Texas workers' compensation system has been operating under the current reimbursement levels for four years yet health care providers' costs (such as human resource benefit costs) have risen as they have for all employers.

Response: The Commission agrees that doctors should receive reimbursement for filing the Work Status Report at this time. However, the Commission disagrees with suggestions that the reports should be reimbursed at a level beyond the $15.00 that was proposed.

The Commission disagrees that the report is significantly more complicated to fill out than prior reports but, nevertheless has been working to improve its ease of use. The Commission published a draft of an improved form on the Internet and asked for suggestions on how to improve it. A number of employers, carriers, and health care providers has assisted the Commission in reviewing those suggestions and making even more improvements to the form. The final version of the form has been significantly changed from the first draft that was issued back in December of 1999. Among the more important changes designed to improve ease of use are: removing redundant choices and less common restrictions; reorganizing the information so the form is easier to fill out and more closely follows the process that doctors generally follow in filling out reports; and simplifying of the language on the report.

While it is true that providing follow-up appointment information and transmitting the report by facsimile or electronic transmission represents a change from many doctors' current business practices, it is anticipated that these changes will improve the system. Further, regardless of whether transmitting a report by facsimile, electronic transmission, or postal mail, someone has to determine where to send the report and then send it. Regarding the follow-up services information the doctor's staff can fill out this portion of the report when the employee makes their next appointment as he or she is leaving. The staff can then make a copy for the employee and set the original aside to be transmitted to the employer and the carrier.

Although the timeframe for filing these reports with the carrier and the employer is much tighter than the seven day timeframe for filing a TWCC-69 form, the TWCC-69 is a more complicated report to complete (assuming the doctor has found the employee to be at maximum medical improvement (MMI)) because the doctor must attach a multi-page narrative that describes the examination and how the impairment rating was determined. Therefore, it is appropriate that the TWCC-69 be given more time to be filed.

The Commission agrees that reimbursement for required reports should be consistent which is why the Commission does not believe that it would be appropriate to increase reimbursement for this report from the level that was proposed at this time. Any change in the amount of reimbursement for required reports would need to be based upon a broader analysis of costs and reimbursements in the system and the Commission has not yet performed such an analysis. The issue of whether or not office visits are reimbursed at too low a level is separate from the issue of reimbursement for the report itself.

Although many system participants will choose to incorporate the Work Status Report into their automation systems, this is a choice and these will be fixed start-up costs. As businesses, doctors will choose automation if they believe that automation can increase efficiency and thus reduce costs. It is also worth noting that even though the reimbursement levels for reports were originally set at $15.00 in 1991 and have not been adjusted since that time, many doctors chose to automate their systems to produce those reports automatically. However, now such automation should be much easier given the improvements in computers and software that have occurred in the past ten years and their increased presence in doctors' offices.

The intent of reimbursing the doctor for filing the Work Status Report was not to create a new source of revenue for doctors. The intent is to compensate the doctors for the cost of providing the report. The Commission believes that the Work Status Report represents a separate cost to doctors that should be separately compensated at this time. However, the intent is to reimburse costs of the filing, not restructure the reimbursements for office visits.

Although the Commission agrees that reimbursements should not be set at levels that would jeopardize access to medical care, at the same time the Commission does not believe that filing reports should be a significant source of revenue for doctors. As indicated in the preamble to the original adoption of this rule, the Commission is in the process of evaluating medical fees in the system by developing a new medical fee guideline. At this time, the Commission is not prepared to increase the cost of reimbursing a report beyond that which the system has historically paid because such changes, if evaluation shows they are warranted, should be done in conjunction with the other changes so that the Commission and system participants will be able to anticipate the total impact of all the changes together rather than having to evaluate them piecemeal.

Comment: Commenter expressed disagreement with the way doctors are expected to evaluate the employee's current work status and suggested that a much higher reimbursement was appropriate because he felt the doctors should do extensive evaluations on work status. Specifically, the commenter disagreed with idea that the report should be filed in the absence of something akin to a functional capacity examination as is anticipated by the rule noting that: "The Work Status Report addresses key issues that deal with specific information such as time and weights. How long can an employee stand, sit, bend etc. and how much weight can that employee lift and for how long. Unless the form is completed based on appropriate testing the employer will have to be prepared for liability associated with reinjury."

The commenter argued that filling out the report without some kind of examination is nothing more than "guessing" and that such guessing will "be substandard care for the employee and increased risk in the [return to work] process. Just guessing without supportive testing and physician examination increases risk for all parties involved and results in poorer care for the employee. The additional time and testing will require appropriate charges in the range of $100- $200."

The commenter argued that the report requires more than just the doctor's experience and judgment: "Appropriate testing is necessary to accurately determine RTW status. Management of the employee's RTW status should not be delegated to a guess. Basing the employee's work status on a guess from the physician is not wise and may ultimately result in more work reinjuries and increased workers compensation costs."

The commenter also expressed disagreement with the statement that the rule should save costs by reducing disputes and simplifying their resolution: "You can not get better information from a guess . . . insurance companies are already sending the employee for an Independent Medical Evaluation, IME. They, IME doctors, are already sending the employees back to work unrestricted. This will result in more disputes from the treating physician, especially if the IME doctor bases their decision on a guess."

Response: The Commission disagrees. The type of testing that the commenter described is more akin to a functional capacity examination (FCE). As noted in the December 1999 adoption preamble to §129.5, doing FCEs on a regular basis is not appropriate. The Commission's Medical Fee Guideline allows a maximum of three FCEs per employee. The FCE is more useful for the more severe injuries, particularly those which result in significant permanent restrictions and in cases where there may be a disagreement of the employee's work status. However, if doctors were to do an FCE on every claim, the per claim medical costs would increase dramatically since each FCE may be reimbursed several hundred dollars.

Restrictions on an employee's ability to work are dynamic by their very nature. Over time, these restrictions will change as the employee becomes more able to work. However, it is also possible that a doctor will overestimate the employee's ability to work. In those cases, the employee should contact the doctor and ask the doctor to revise the restrictions. The reason the rule requires the doctor to provide the employee with a copy of the report at the time of the examination is to ensure the employee has the opportunity to discuss a return to work release with the doctor. This can help the employee understand what he or she is able to do and should help ensure that any restrictions are accurate and understood. Communication between the doctor and the employee should ensure an accurate assessment of the employee's ability to return to work and applicable restrictions on activities.

Rule 129.6 (relating to Bona Fide Offers of Employment) reminds system participants that they can request a benefit review conference on an offer of employment if they have any concerns about it. However, offers of employment based upon restrictions assigned by an experienced doctor are expected to be appropriate so that disputes will be avoided. The key is having clear communication about the doctor's opinion regarding the employee's ability to return to work. In the past, light duty releases were often given with little if any detail about what "light duty" meant. This would lead to disputes about what the doctor meant and whether the job was really within the employee's ability to work. As a tool, the Work Status Report will help improve the quality of information provided by the doctor regarding work status and work restrictions which will improve the ability of the employer to accurately identify modified duty opportunities which meet the employee's restrictions.

OTHER COMMENTS RELATING TO REPORT BILLING AND REIMBURSEMENT

Comment: Commenter asked that subsection (i) be clarified to indicate that the doctor will be reimbursed if the carrier requests reports in excess of those required by the rule. Another commenter suggested that the rule should explicitly state that third and fourth party agents, including rehabilitation nurses should have to obtain information from either the employer or the carrier because physician offices are continuing to receive phone calls from these people who are requesting information that has already been faxed to two other sources. The commenter also asked that the Commission not require doctors to submit an additional copy the report with the medical bill as this would be yet another filing of the report and would be duplicative to the one the carrier was previously sent by fax or email.

Response: The Commission agrees that doctors should not be and are not required to file a separate, additional copy of the report with the medical bill to be reimbursed for the bill. The Commission also agrees that carriers should be responsible for providing their staff and their agents with copies of reports and documentation they need. However, there are circumstances under which it might be reasonable to ask for an additional copy of a report. Rather than forbid carriers or their agents from requesting additional copies of reports, the Commission believes that it is more appropriate to provide reimbursement for the additional reports since the $15.00 reimbursement should outweigh the cost the carrier would otherwise experience if it had to copy the report itself. This will hopefully limit the circumstances under which doctors will receive these requests to those in which an extra copy is truly necessary. The Commission also agrees that subsection (i) should be clarified to ensure that system participants understand that if a doctor provides additional copies of a Work Status Report at the request of the carrier, employer, or their agents, the doctor is entitled to reimbursement.

However, in reviewing the commenters' concerns, the Commission noticed that the rule does not address how doctors are to bill for this report. In addition, given all of the concerns raised about costs and having to provide additional copies of reports upon request of the employer, carrier, or their agents (e.g. case management nurses), the Commission believes this is an area that needs to be monitored. Therefore the rule has been amended to provide instructions on what code and modifiers doctors are to use when billing.

Three different billing instructions were included to allow the Commission to evaluate the impact on medical costs that reimbursing the Work Status Report has had and to allow the Commission to differentiate between the costs associated with the reports minimally required by the rule, the cost of the additional reports required because of a request by the carrier or the employer making the request through the carrier, and the cost of the extra copies of previously provided reports. This differentiation is important for two reasons. The first is that the costs that are tied to requests by the employer or carrier are within the control of the employer and carrier which means they should be evaluated separately. Second, doctors have long complained about carriers requesting additional copies of previously provided reports and documentation. Being able to identify these requests by their billing will allow the Commission to evaluate how often these requests happen and possibly develop solutions for any continuing problem. Subsection (i) has been changed as follows:

(i) Notwithstanding any other provision of this title, a doctor may bill for, and a carrier shall reimburse, filing a complete Work Status Report required under this section or for providing a subsequent copy of a Work Status Report which was previously filed because the carrier, its agent, or the employer through its carrier, asks for an extra copy. The amount of reimbursement shall be $15. A doctor shall not bill in excess of $15 and shall not bill or be entitled to reimbursement for a Work Status Report which is not reimbursable under this section. Doctors are not required to submit a copy of the report being billed for with the bill if the report was previously provided. Doctors billing for Work Status Reports as permitted by this section shall do so as follows:

(1) CPT code "99080" with modifier "73" shall be used when the doctor is billing for a report required under subsections (d)(1), (d)(2), and (f) of this section;

(2) CPT code "99080" with modifiers "73" and "RR" (for "requested report") shall be used when the doctor is billing for an additional report requested by or through the carrier under subsection (d)(3) of this section; and

(3) CPT code "99080" with modifiers "73" and "EC" (for "extra copy") shall be used when the doctor is billing for an extra copy of a previously filed report requested by or through the carrier.

Comment: Several commenters thought it would be simpler and more efficient if the cost of the report were considered in the reimbursement for the office visit rather than having a separate bill or separate line of billing for the report: "adopting a separate billing process for the filing of work status reports - as opposed to factoring the costs of such services into the fee schedule - would serve only to unduly increase paperwork, time, and expense for physicians, employers, and carriers alike, to the detriment of the system."

Response: The Commission disagrees. Historically, doctors have billed for reports separately. Specifically the Commission's fee guidelines have told doctors to bill required reports using CPT code 99080. Also, the Commission has reduced the minimal reporting requirements of the rule significantly (with it now being less than the prior reporting requirements of the TWCC-61 and TWCC-64). Therefore, there should be minimal impact on administrative costs. Carriers who wish to limit the administrative costs should limit their requests for additional reports to those cases where such reports are appropriate and worth the extra cost to the carrier.

COMMENTS ON HOW FREQUENTLY THE REPORT IS TO BE FILED

Comment: Commenter suggested that the Work Status Report should be completed at each appointment, but no more often than every 2 weeks, even after the patient is able to return to full duty so there would be no question as to the patient's current work status. This was nearly the opposite of other concerns regarding cases in which there are very serious injuries (e.g. when the employee is permanently disabled) or when the employee retires, the form would not provide useful information after maximum medical improvement (MMI) and suggested that continuing to file the form on a scheduled basis would not be appropriate (and would be a waste of time and money) and filing it at the request of an interested party would be more appropriate.

Response: As noted, the Commission has reconsidered how often the report should be filed by the doctor based, in part, on concerns about the effect that reimbursement of all these reports would have on medical costs. The suggestion that the doctor continue to file reports confirming that the employee is able to return to work is inconsistent with the direction that the Commission believes the rule should follow. Although it is possible for an employee who has been released to return to work without restrictions to later be restricted from work (either partially or entirely), the danger that this would cause delayed payment of income benefits is relatively minor because both the employer and the doctor have a duty to file reports with the carrier. Further, the employee has a vested interest in notifying the carrier of the disability.

Regarding the issue of permanent restrictions, now that the doctor will generally only be filing the Work Status Report at the beginning of the claim and when the employee's work status or activity restrictions changes, the issue of continuing to file reports on employees whose condition has not or will not change is moot. The only time a doctor will be required to file a report in this situation is if the carrier requests one on its or its employer's behalf and it is unlikely that either the employer or the carrier will believe that additional reporting is appropriate in the case of an employee with permanent restrictions or who is retired.

Comment: Several commenters suggested that it would be preferable if the doctor only had to file the report when the employee's condition changed. Another commenter questioned whether the report needed to be filled out every two weeks: "If one has a common, uncomplicated, broken wrist, it takes 6 weeks for that to heal. At two weeks one might be ready to go back to work at a one-handed job, if their employer offers a one-handed job. If they do not, then it will be 6 to 8 weeks routinely before one can return to work, if the person has to be 100 percent rehabilitated. Those are very standard types of time. In those types of situations a report every two weeks is quite redundant."

Another suggestion was to modify modifying the second sentence of subsection (e) to require the report to be filed with the employer when the employee's work restrictions change which the previous rule did not do. The commenter pointed out that the employer needed to know whether the employee's restrictions have become less restrictive or more restrictive so that the employer can adjust the employee's job duties as necessary to meet the employee's restrictions: "This change would be more consistent with the program encouraging employers and treating doctors to communicate about modified duty."

Response: The Commission agrees that the number of reports required to be filed by the rule should be reduced. The Commission also agrees that when there is a substantial change in the employee's activity restrictions a Work Status Report should be filed and the employer should receive a copy of the report. This is necessary to ensure that the modified duty that the employee is performing is appropriate to the employee's medical condition.

Although the Commission can anticipate cases where additional reporting (i.e. a report as often as once every two weeks) could be useful to the employer and carrier, applying a constant reporting standard to all claims will generally be overkill and unnecessarily drive medical costs up. Therefore, as noted, the Commission is changing the minimum number of reports required by the rule to more closely match the suggestions that the report only be filed when there is a change in work status or a substantial change in activity restrictions. If the carrier or employer believes that additional reporting is necessary and appropriate on a given claim or for their claims management practices in general, the carrier can request that the doctor file on a more frequent basis. However, in order to ensure that this reporting does not become excessive, doctors will not have to file reports more often than once every two weeks and the schedule will be based upon the scheduled appointments with the employee (in order to ensure that carriers are not dictating the appointment dates/frequency).

At some point, the Commission could revise the filing requirements again if it adopts standard return to work guidelines. This would allow for automatic reporting on an exception basis based upon whether a claim was exceeding a guideline. However, at this time, such a system is not workable because the lack of standards would likely be a cause of disputes and questions over whether a report was due. Subsection (d) was amended as follows to implement the changes in filing requirements:

(d) The doctor shall file the Work Status Report:

(1) after the initial examination of the employee, regardless of the employee's work status;

(2) when the employee experiences a change in work status or a substantial change in activity restrictions; and

(3) on the schedule requested by the insurance carrier (carrier), its agent, or the employer requesting the report through its carrier, which shall not to exceed one report every two weeks and which shall be based upon the doctor's scheduled appointments with the employee.

In addition, to ensure that there is no confusion about what "change in work status" and "substantial change in activity restrictions" mean, the Commission has added language to subsection (a) and made minor changes to the subsection to simplify the language of the rule as follows:

(a) As used in this section:

(1) the term "doctor" means either the treating doctor or a referral doctor, as defined by §133.4 of this title (relating to Consulting and Referral Doctors);

(2) "substantial change in activity restrictions" means a change in activity restrictions caused by a change in the employee's medical condition which either prevents the employee from working under the previous restrictions or which allows the employee to work in an expanded and more strenuous capacity than the prior restrictions permitted (approaching the employee's normal job);

(3) "change in work status" means a change in the employee's work status from one of the three choices listed in subsection (a)(4) of this section to another of the choices in that subsection; and

(4) the term "work status" refers to whether the injured employee's (employee) medical condition:

(A) allows the employee to return to work without restrictions (which is not equivalent to maximum medical improvement);

(B) allows the employee to return to work with restrictions; or

(C) prevents the employee from returning to work.

Comment: Commenters suggested that the doctor should always file the report with the employer as well as the carrier, rather than simply filing it with the employer at the beginning of treatment and when the employee's work status changes. One commenter pointed out that the "employer is an interested party for the duration of the claim and is entitled to Work Status information from each visit whether or not the status has changed." The other commenter suggested that this would be less confusing (since doctors would not have to send it to different people under different conditions) but indicated that if the employee were required to provide a copy to the employer, then perhaps the doctor would not need to do so.

Response: The Commission agrees. Having one standard for who receives reports is simpler to follow. However, the fact that the report will generally only be filed when there is a change in work status or activity restrictions unless requested, means that the employer will always get a copy of the report. Subsection (e) has been changed as follows:

(e) The Work Status Report filed as required by subsection (d) of this section shall be provided to the employee at the time of the examination and shall be sent, not later than the end of the second working day after the date of examination, to the carrier and the employer.

COMMENTS ON THE CONTENT OF REPORT

Comment: Commenters suggested that the requirement in subsection (c) for an estimated expiration date for restrictions should be eliminated. Commenters were concerned that carriers would attempt to use such dates to attempt to stop or deny treatment and/or benefits to employees and argued that since the expiration dates were nonbinding, they did not have value: "Although TWCC does not hold an expected expiration date binding, insurance carrier adjusters & case managers tend to do so. In doing so, the patient then is penalized for not being able to return to work on the projected date. Therefore, an expected date should not be required."

Another commenter suggested clarifying §129.5(c) to specify that restrictions with an expiration date may be considered as ended in the absence of a change or extension from the doctor assigning them.

Response: The Commission disagrees with the suggestion that the rule be changed to not require expected expiration dates. Expected expiration dates serve a number of purposes. First, they help carriers with case management by giving them a better means of determining whether an employee is likely to accrue TIBs and by providing dates that the carrier can use in a diary system to track claims once benefits have started. In addition, expected expiration dates help employers better manage their operations by helping them determine when they might be able to have the employee back on modified duty and how long such duty might be expected to last. It also helps the employee understand the doctor's assessment of their work status.

Although the simple fact that an expected expiration date has been reached is generally not grounds to terminate benefits (particularly when the doctor has not yet had the time to file a subsequent report), in some cases it will be appropriate to dispute disability based upon an expected expiration date. One example of this would be where the doctor released the employee to return to work with restrictions but also released the employee from treatment (e.g. the employee is treated for a sprained ankle and the doctor's restrictions include minimal standing and walking for two weeks). In this case, if the employee is released from treatment by the doctor, then it might be reasonable to expect disability to end when the doctor estimated the restrictions would expire. Another example of when such disputes would be appropriate is when the employee is no longer receiving treatment and can not be located.

Each situation must be evaluated separately based, in part, on the type of restrictions that were expected to "expire." In many cases it will not be appropriate to dispute disability or presume a lack of disability based solely on an expected expiration date. For example, if the employee had not yet been released to modified duty, and had a significant injury, then the "expiration" of the full restriction from work would more reasonably only be expected to result in the employee's being able to work at modified duty. Without a bonafide offer of employment, an employee who is able to return to work with restrictions is still entitled to TIBs. But, as noted, if the employee had been released to return to work with restrictions when the restrictions supposedly "expired," it might be reasonable to assume the employee could return to work without restriction and thus does not have disability. In all these cases, the carrier's first action when an expiration date is reached should be to contact the employee, employer, and doctor to try to verify whether the employee has returned to work without restrictions or whether the doctor anticipates extending or modifying the employee's restrictions.

Comment: Commenter suggested that when a doctor indicates that an employee is totally incapacitated, the doctor should be required to give "proper and adequate medical documentation" as to why the employee is unable to work. Another commenter suggested that the change in the amount of time to file the report should be coupled with a requirement that the doctors state "the specific objective medical basis or finding necessitating the employee be off work."

Response: Although the Commission agrees that doctors should have medical documentation that explains an employee's medical condition, the Commission disagrees that this information should be provided as part of the Work Status Report. Doctors are required to provide an explanation of why the employee can not return to work even with restrictions on the TWCC-73; however "proper and adequate medical documentation" would likely be more extensive information than the Work Status Report was designed to convey and would be better provided as part of the bill for an office visit if such documentation is required. Further, if the carrier disagrees with the doctor's opinion regarding the employee's work status, the carrier can file a notice of dispute of disability in accordance with §124.2 (relating to Carrier Reporting and Notification Requirements).

Comment: Commenter suggested that details on why the employee is not able to do even light duty work impedes the progress of coordination of doctor, employer, employee and insurance company for a safe return to the work environment and leads to miscommunication and adversarial roles. Another commenter disagreed with the requirement on the form for a doctor who indicates that the employee can not return to work at all, to provide a specific explanation of how the condition precludes the employee from returning to work objecting to the "requirement of a 'specific explanation' because it will required an inordinate amount of time to explain to non-medical personnel (i.e. employers) the rationale for the employee being unable to return to work." The commenter was concerned that this would cause unnecessary confusion and questions.

Response: The Commission disagrees. There are clearly cases in which an employee will be unable to work even in a light duty capacity (especially during the period immediately following a significant injury). It is important that employees, employers, and carriers understand the reasons for this and how long the full restriction is expected to last. The Commission believes that more complete information improves communication, improves return to work, and reduces disputes.

Further, the Commission believes that if the doctor is indicating that the employee can not return to work in any capacity, the doctor should be required to provide an explanation of how the employee's medical condition precludes the employee from returning to work in order to ensure that the form is not biased. For example, if it were easier for the doctor to check a box marked "unable to work" with no further explanation than it was to indicate the employee can return to work with restrictions (necessitating identifying the restrictions on the form), the simplicity of the choice might influence the way the report is filled out.

Finally, employers and carriers have indicated that information on why the employee can not return to work (i.e. with restrictions) is useful for claims management purposes. Employers who have questions about the doctor's explanation can call their carriers for assistance or call the treating doctor. Texas Labor Code §413.018 charged the Commission to "establish a program to encourage employers and treating doctors to discuss the availability of modified duty to encourage the safe and more timely return to work of injured employees." If the requirement to explain why the employee can not return to work spurs that communication, then it would appear that the intent of the statute was met.

However, it is important to address the idea that most employees should be released to return to work with restrictions rather than being placed completely off work. As noted by several other commenters, in general, when making a decision about the employee's work status the doctor is not supposed to be influenced by whether the employer has a specific position available. The job of the doctor is to identify what the employee's restrictions are and then let the employer attempt to find appropriate work. If the restrictions are so stringent that the employer does not have a position that can meet the restrictions, there is no impact on the employee's income benefits. The Commission agrees that doctors need to provide restrictions on all cases where it is appropriate to do so and let the employer have the opportunity to try to meet those restrictions.

Comment: Commenter suggested that reimbursement for simply filing the form and checking off that the employee is unable to work seemed excessive unless the doctor sent a note explaining the status. The commenter suggested that the doctor should also file a treatment plan that details the way the doctor intends to relieve symptoms at follow up visits.

Response: The Commission disagrees that doctors should file treatment plans as part of the Work Status Report. The Work Status Report is not intended to address medical treatment because it is not a traditional medical report. The report is merely designed to improve case management and return to work. Further, the report does require an explanation from the doctor of why the employee cannot work if the doctor is restricting the employee from all work.

COMMENTS RELATING TO PROPER COMPLETION OF THE REPORT

Comment: Commenters suggested that reimbursement for the form and/or office visits should be tied to properly completing the form. One commenter noted that many doctors merely state "off work until further notice" and that then employees who only have minor injuries are off work for months. Another commenter expressed concern about her experiences with the TWCC-73 form where doctors either ignore blanks for estimated expiration dates or write "unknown" and suggested amending subsection (i) to condition reimbursement on providing the required information by changing the first sentence of the subsection to read:

"Notwithstanding any other provision of this title, a doctor may bill and a carrier shall reimburse a report required under this section in the amount of $15 for completion of the information required."

Another commenter noted that often "the forms are not filled out completely: missing description precluding working in any capacity; given off work status for two years with no rationale (such as on a simple strain which normally resolves in 8 weeks); or being given no follow up reporting of work status after initial status done." Commenter suggested that to solve this, when forms are incomplete, there should be no compensation to the doctor or it should be given at a reduced rate.

Response: The Commission agrees that Work Status Reports need to be properly completed. As noted, expected expiration dates serve a number of purposes. First, they help carriers with case management by giving them a better means of determining whether an employee is likely to accrue TIBs and by providing dates that the carrier can use in a diary system to track claims once benefits have started. In addition, expected expiration dates help employers better manage their operations by helping them determine when they might be able to have the employee back on modified duty and how long such duty might be expected to last. Expiration dates also help employees by giving them information about how their injury is expected to heal and when they can plan to be able to return to their job or to a modified duty position.

Work Status Reports on which the doctor has failed to provide an estimated expiration date for restrictions or put "unknown," in all but the most extreme cases (e.g. an employee in a coma or paralyzed or the doctor has not yet been able to evaluate the full extent of a serious injury involving multiple fractures), would be considered incomplete and the doctor would be in noncompliance, because an estimated expiration date for restrictions is required by the rule.

Texas Labor Code §408.021 entitles injured employees to health care that enhances the ability to return to or retain employment. This shows the inter-relatedness of medical care and return to work and makes it the doctor's responsibility to provide treatment that enhances the employee's ability to return to work. Therefore, doctors need to put realistic expected expirations on an employee's restrictions.

Some doctors who are giving two year estimates on the expiration of restrictions may be confusing the concept of "return to work without restrictions" with "MMI." An employee can be released to return to work without restrictions before MMI and an employee with a serious injury who has reached MMI might not yet be able to return to work without restrictions (especially in the case of statutory MMI). In making estimates of expiration of restrictions, doctors need to not confuse these two different concepts.

Under Texas Labor Code §413.018, the Commission is also charged with providing by rule for the periodic review of medical care provided in claims in which guidelines for expected or average return to work time frames are exceeded. As the Commission moves forward in doing this, it is possible that the Work Status Report will play a prominent role in those reviews, particularly in identifying the claims in which such a review is necessary. Doctors who simply put 104 weeks for the estimated expiration on every claim or who similarly estimate excessive periods for minor injuries may find themselves more likely to have their treatment reviewed.

In order to address the issue of "completeness," the Commission has changed subsections (b) and (c). Each of these subsections previously provided some guidance on what information was required on the report. Now subsection (b) merely requires doctors to file the report in the form and manner prescribed by the Commission and subsection (c) lays out what is required in a complete report. Subsection (i) was also amended to indicate that doctors are only entitled to reimbursement when a report is complete (see prior changes) The Commission is providing guidance on completeness in the rule in order to set out a consistent standard and prevent doctors from having to deal with multiple interpretations of what is required. The changes to subsections (b) and (c) are as follows:

(b) The doctor shall file a Work Status Report in the form and manner prescribed by the Commission.

(c) The doctor shall be considered to have filed a complete Work Status Report if the report is filed in the form and manner prescribed by the Commission, signed, and contains at minimum:

(1) identification of the employee's work status;

(2) effective dates and estimated expiration dates of current work status and restrictions (an expected expiration date is not binding and may be adjusted in future Work Status Reports, as appropriate, based on the condition and progress of the employee);

(3) identification of any applicable activity restrictions;

(4) an explanation of how the employee's workers' compensation injury prevents the employee from returning to work (if the doctor believes that the employee is prevented from returning to work); and

(5) general information that identifies key information about the claim (as prescribed on the report).

COMMENTS ON WHO FILES THE REPORT

Comment: Commenters indicated support for the clarification of who files the report.

Commenter suggested that the Work Status Report be filed by the doctor who is providing treatment at the time: "For example, if the Treating Dr. has referred the patient to a referral dr. for pain management, the pain management specialist should complete the TWCC-73 until the patient returns to the Treating Dr. The Treating Dr. should continue to be responsible for assessment every 60 days to maintain continuity of care."

Response: The Commission believes that it is appropriate for the doctor providing primary treatment at the time to be responsible for filing the report. The Commission also agrees that the treating doctor should continue to be responsible for the claim but disagrees with the specific suggestion that the treating doctor should be responsible for an assessment every 60 days as this is not required by the Commission's fee or treatment guidelines and the Commission has repealed the requirement that treating doctors file Subsequent Medical Reports (TWCC-64) every sixty days (effective July 15, 2000).

Comment: Commenter suggested that the rule specifically mention whether RME doctors are required to file the report. Another commenter suggested that the rule should specify that the RME doctor is required to file the Work Status Report if requested to address work restrictions.

Response: The Commission agrees. A new subsection (j) has been added that reads as follows:

(j) As provided in §126.6(f) of this title (relating to Order for Required Medical Examinations), a doctor who conducts a required medical examination (on anyone's behalf) in which the doctor determines that the employee can return to work immediately with or without restrictions, shall file the Work Status Report required by this section, but shall do so in accordance with the requirements of §126.6(f).

Comment: Commenter was confused by the requirements of subsection (f)(2), believing that it required treating doctors to file the Work Status Report for RME doctors. The commenter suggested that it would be much faster and easier if the RME doctor simply filed the report at the time of the examination rather than making the treating doctor do it; especially since the treating doctor should not be responsible for another doctor's actions which the treating doctor may not agree with.

Response: The Commission agrees that the RME doctor should be required to file his or her own report. Subsection (f)(2) requires the treating doctor to file a Work Status Report in response to receiving the RME doctor's report that the employee can return to work. The RME doctor's report is also a Work Status Report. The purpose of requiring the treating doctor to file a Work Status Report in response to the RME doctor's report is similar to the requirement for a treating doctor to indicate agreement or disagreement with a certification of MMI and assignment of an impairment rating by a doctor other than a designated doctor under §130.3 (relating to Certification of Maximum Medical Improvement by a Doctor Other Than the Treating or Designated Doctor). Getting the treating doctor's opinion on these reports can help avoid disputes or can help clarify issues in a dispute. To make certain that this subsection is understood, it has been amended as follows:

(f) In addition to the requirements under subsection (d), the treating doctor shall file the Work Status Report with the carrier, employer, and employee within seven days of the day of receipt of:

(1) functional job descriptions from the employer listing available modified duty positions that the employer is able to offer the employee as provided by §129.6(a) of this title (relating to Bona Fide Offers of Employment); or

(2) a required medical examination doctor's Work Status Report that indicates that the employee can return to work with or without restrictions.

COMMENTS ON THE TIMEFRAME FOR FILING THE REPORT

The Commission received comments from a number of commenters relating to the proposal to extend the timeframe for filing the report with the carrier and employer. These included support for the extension, opposition to the extension, and the suggestion that the period be extended further.

Comment: A number of commenters supported addition of one working day to the timeframe for filing the report to the carrier and employer. A commenter included a lengthy description of problems he has had with doctors who he believes keep employees off of work for too long and believed that the "TWCC-73 is a good process". This commenter supported extension of time to file the report but insisted that there must be vigorous enforcement efforts to ensure timely filing of the reports. Commenter felt that the Commission has adopted a double standard with regard to enforcement of health care providers as compared to carriers and employers.

Response: The Commission agrees that the time frame for filing the report with the employer and the carrier should be extended as proposed and agrees that the Commission may need to take enforcement action to ensure compliance with the rule if it finds there are compliance problems. However, the Commission disagrees that the Commission has adopted a double standard with regard to enforcement actions against non-compliant health care providers. When considering what enforcement action may be appropriate on a given instance of noncompliance, the Commission reviews the facts of the case and weighs the six factors required by Texas Labor Code §415.021(c). These factors are applied for each type of violation, regardless of the violator. The commenter's perception that the Commission tends to work more carrier violations than provider violations may be caused by the fact that (through May of fiscal year 2000) more than 70% of administrative violation referrals received by the Commission are alleged carrier violations and less than 9% of referrals are alleged health care provider violations.

Comment: Commenter argued against changing the TWCC-73 reporting system: "Do you actually feel that the current requirement of medical reports every sixty days is adequate?" The commenter went on to provide an example of a claim in which the employee is off work for months and there are only three medical reports filed and suggested the Commission solve this problem by rule. Commenter instead suggested that the doctor should be required to file the report with carrier at the time of the examination since that is when the employee gets it. Another commenter felt that: "The filing time for distribution to the carrier and employer is unrealistic. If the form is to be given to the employee on the date of service, the form should be transmitted to the carrier and the employer the same day. It is obvious the provider will know who the employer is and will also be aware of the carrier. It is common practice for a provider to withhold service until they have that information."

Another commenter opined that the proposal to extend the filing timeframe does "not serve the goals of the workers' compensation system as it relates to providing timely notice regarding a workplace injury, and the work status of an injured employee. The TWCC in its original adoption of this rule required that the report be filed within 24 hours. Our original comments asked that in light of the requirement that the injured employee be given a copy of the report at the time of examination, why should there be a delay in providing immediate feedback to the employer? System goals could be better met if the report was also forwarded immediately to the carrier and employer. The original adoption provided what we felt was a reasonable compromise of 24 hours, and we are now forced to oppose the current attempts to extend the filing time from 24 to 48 hours. Notice to the employer must be provided as quickly as possible. Further, as providers have complained of the inability to verify coverage, a requirement of an earlier notice could also serve to better assist a healthcare provider in obtaining necessary coverage information."

Response: The Commission disagrees. The Work Status Report is not a medical report and further, it is not filed once every 60 days as the commenter seems to believe. It appears that the commenter is confusing the requirement to file the TWCC-64 - Subsequent Medical Report (which was due once every 60 days) with the requirements of this rule. The requirement to file the TWCC-64 has been deleted effective July 15, 2000.

Regarding the suggestions that the report should be provided to the employer and carrier on the date of examination, as indicated in response to similar comments received on the 1999 proposal of §129.5 (contained in the adoption preamble published in the Texas Register on December 17, 1999), the Commission does not believe that the timeframe should be shortened to the date of the examination. If the examination were to take place late in the day, the doctor might not have the opportunity to timely transmit the report. Further, as indicated in the proposal to these amendments, doctors have been having difficulty obtaining correct transmission information from carriers and employers, making it harder to timely submit the report in one working day. It is not always "obvious the provider will know who the employer is" as many employers do business under different names and the employee may not know the true name of the company or what facsimile number the employer would want the report sent to. In decentralized operations (i.e. those where the employees work on various job sites), it is especially likely that the employee will not know what the facsimile number is.

Carriers and employers who want to ensure the report is received as early as possible should be very proactive in providing transmission information to the doctor. For example, carriers could provide employers with coverage cards that contain voice and facsimile numbers and email addresses on them that the employer would give to the employee to take to the doctor. The cards could even have places on them for employers to add their contact information as well. This would make it much easier for doctors to file reports and have the potential to greatly improve communication between doctors, employers, and carriers. In addition, the employee would have this information as well which could help the employee contact the carrier when needed. Employers could choose to provide this type of information as well.

Comment: Commenter suggested that there should be 3 days to submit the form: "A large, geographically diverse clinic system will take at least that long to collect the form from the physician and send to processing/fax areas. Also injury verification often takes one working day from the visit." Another commenter suggested that "the time frame for faxing to the insurance carrier and employer should be 3-4 business days rather than the proposed 2. Currently, in order for a fax to be received within the 1-2 day time frame, 90% of the time, our staff must fax to insurance carriers after 5 p.m. or before 8 a.m. to ensure the fax goes through due to the heavy volume of faxes being sent and received by both offices." This commenter also pointed out that when "the TWCC-73 has to be filed by mail, the 2-day time frame is being extended simply by the fact that it may take 5-7 days to reach the employer or carrier."

Response: The Commission disagrees. If a doctor is filing reports outside of traditional business hours, extending the time to file would not allow the commenter to avoid filing reports outside of normal business hours because the number of reports being sent each day would remain the same. Basically, if the volume of reports is the same and the days of the week that the doctor can file the report remains the same (i.e. 5 days in a traditional work week), then extending the time frame would have no effect because the number of reports per day would remain unchanged. In order to improve timely filing and avoid busy signals, doctors and carriers could also utilize some kind of facsimile "buffering" system where faxes are kept in a system memory like voice mail until there is a free machine to print the information out. In addition, doctors and employers could use internet faxing services which will automatically complete the transmission.

The Commission does not support extending the time to send the Work Status Report to the employer and carrier beyond the end of the second working day following the date of the examination. By statute, a carrier always has seven days from the date it receives first written notice of the injury to investigate a claim before it can be required to pay income benefits.

Because the earliest that TIBs are required to be paid is seven days after they accrue (which is the eighth day of disability), and the carrier's investigation of a claim is not expected to delay payment of benefits to the employee, ideally, TIBs should be paid 15 days after the employee began to experience disability. However, this is only theory. In reality, TIBs are usually paid later because often the carrier does not receive written notice of the injury until after the eighth day of disability and the carrier still has a minimum of seven days before it is required to make a payment.

The reason for the delay in notice to the carrier can be found in the statute and rules. By statute, employers have eight days from the day the employee has been absent from work for more than a day (occupational diseases are different) to send the Employer's First Report of Injury (TWCC-1) to the carrier. This means that at minimum, the employer has 10 days from the date of injury to file the report (two days of absence from work to trigger the duty to file plus eight days of time to actually send the report to the carrier). In addition, employers are permitted by statute to send the reports by mail which adds another 3-5 days to the transmittal time. Further, if the eighth day falls on a weekend or a holiday, the due date is extended to the next working day. Therefore, although the ideal is for the first check to be issued 15 days after the injury, in the worst case scenario, it is possible for an employer to timely submit the TWCC-1 and the carrier to timely initiate benefits (i.e. within seven days) but the check not be issued until 26 days after the injury (even in cases without delayed or intermittent lost time). For the period of May 1, 1999 through April 30, 2000, the average number of days from date of injury to issuance of the first check by carriers was 19.4.

The Commission anticipates the Work Status Report often serving as the carrier's first written notice of injury. To the extent the Work Status Report is received by the carrier prior to the eighth day of disability, benefits should be issued earlier (i.e. closer to the 15-day ideal). In addition, the Work Status report will be a very valuable tool for carriers to confirm disability and the duty to pay benefits (because the estimated expiration of restrictions should tell the carrier whether or not and when benefits are likely to accrue). Therefore, when considering the number of days that doctors are given to file the report, the Commission has considered the effect that later reporting would have on the initiation of benefits. The driving fact here is that TIBs are paid weekly. Therefore, it is important to try to ensure that the Work Status Report be received by the carrier prior to the seventh day after the date the benefits accrued. The earlier in the pay period the carrier receives the Work Status Report, the more likely the carrier will be to react to it and timely issue benefits by the due date.

In most cases, employees will see doctors on a working day (Monday through Friday, other than a legal holiday). This analysis ignores the issue of holidays for the sake of simplification. If the doctor has until the end of the second working day following the date of the examination to file the report with the carrier and employer (as was proposed), then reports will be due to be filed within 2 calendar days 60% of the time (i.e. a Monday examination will require a report to be sent by close of business on Wednesday, a Tuesday examination will require a report on Thursday, and a Wednesday examination will require a report on Friday). However, 40% of the time, the report will not be due for 4 calendar days (i.e. reports for examinations held on a Thursday or Friday would not be due until Monday or Tuesday respectively).

If the doctor were given three working days to file the Work Status Report, then reports would be due within 3 calendar days 40% of the time (i.e. for examinations held on Monday or Tuesday) and reports would be due within 5 calendar days 60% of the time (i.e. for examinations held on Wednesday through Friday). Remembering that not all employees obtain medical treatment immediately (because they don't realize how serious their condition is or have to wait for an appointment) and taking into account that TIBs are paid weekly, having 60% of Work Status Reports filed as late at 5 days after the date of the examination will greatly reduce the amount of time that carriers have to react to the reports and timely initiate, terminate, or reinitiate TIBs. The Commission believes that using two working days will provide additional time to health care providers while not significantly impacting benefit delivery.

Regarding the delay in employers' receiving Work Status Reports when the employer does not have facsimile or electronic transmission capability (thus necessitating transmission by mail), that delay is not the doctor's concern. The rule requires doctors to send the report by the end of the second working day following the date of the examination; it does not require the employer to receive it. The fact that some employers will not receive the report as quickly as others does not provide a reason to extend the filing timeframe for all employers. If the employer wants to get the report more quickly, the employer can obtain access to a facsimile machine and be sure to provide the facsimile number to the doctor.

Comment: Commenters suggested that the goals of timely reporting and prompt and appropriate return to work would be better met if the employee were required to report his or her work status to the employer within 12-24 hours of receiving the Work Status Report. One of the commenters suggested that the employee be required to provide a copy of the report to the employer.

Response: The Commission disagrees that a requirement for the employee to report or provide a copy of the report within 24 hours should be included in the rule. There are circumstances in which it would be inappropriate to require the employee to deliver the report to the employer (e.g. when the employee is hospitalized).

Comment: Commenter expressed concerns with subsections (f) and (g) of the rule which require treating doctors to file a Work Status Report within 7 days of the date the doctor receives either functional job descriptions from the employer or a Work Status Report from an RME doctor indicating that the employee can return to work. "Filing the report within 7 calendar days of an employer providing a list of available duties or of a required medical exam [doctor's] report is insufficient time. In the field of orthopaedic surgery, 7 calendar days may only actually provide 3-4 days or less for staff to discuss the situation with the treating [doctor]. Either 10 calendar days or 7 business days would be more appropriate." The commenter also stated that the "Work Status Reports should NOT be completed and thus filed without the patient being seen by the treating [doctor]. In our experience, whenever work restrictions are updated between office visits, responsibility for advising the patient 'falls between the cracks,' and the patient is not properly notified in advance of the need to return to work." The commenter also pointed out that if a Work Status Report is filed between appointments, the patient cannot be given a copy as is required, nor can the patient discuss the changes with the doctor as readily as he can in an office setting.

Response: The Commission disagrees. The purpose of requiring the treating doctor to file his or her own Work Status Report in response to the RME doctor's report is similar to the requirement for a treating doctor to indicate agreement or disagreement with a certification of MMI and assignment of an impairment rating by a doctor other than a designated doctor under §130.3 (relating to Certification of Maximum Medical Improvement by a Doctor Other Than the Treating or Designated Doctor). Under §130.3 a treating doctor is given 7 days to indicate agreement or disagreement with the MMI certification and impairment rating assigned by a doctor other than a designated doctor and is not expected to do a separate examination of the employee to do so. Given the amount of documentation a doctor has to review to determine whether an impairment rating is accurate, it seems reasonable to require a treating doctor to also respond within seven days to receipt of a report by an RME doctor that the employee can return to work or receipt of functional job descriptions from the employer. The documentation and the treating doctor's own notes should allow the Work Status Report to be filled out without a subsequent examination.

However, the Commission agrees that if a Work Status Report was issued as required by subsection (f) in between appointments, the doctor would not be able to hand a copy of the report to the employee as required when the doctor files a routine report as required by subsection (d). To address this, subsection (h) was simplified and amended as follows:

(h) The doctor shall file the Work Status Report as follows:

(1) A report filed with the carrier or its agent shall be filed by facsimile or electronic transmission;

(2) A report filed with the employer shall be filed by facsimile or electronic transmission if the doctor has been provided the employer's facsimile number or e-mail address; otherwise, the report shall be filed by personal delivery or mail; and

(3) A report filed with the employee shall be hand delivered to the employee, unless the report is being filed pursuant to subsection (f) of this section and the doctor is not scheduled to see the employee by the due date to send the report. In this case, the doctor shall file the report with the employee by facsimile or electronic transmission if the doctor has been provided the employee's facsimile number or e-mail address; otherwise, the report shall be filed by mail.

The changes also make it easier to identify the means by which Work Status Reports are to be filed with the required recipients.

Comment: Commenter requested that TWCC clarify the rule so as to clearly state that a doctor who is preparing the Work Status Report under the provisions of subsection (f) of §129.5 shall rely upon available medical records and the doctor's latest examination of the injured employee because an "additional examination of the injured employee is not required nor appropriate."

Response: Although the Commission agrees that the doctor should not delay filing the report required by subsection (f) in order to perform an examination, there may be times where it is appropriate for the doctor to perform another examination of the employee when filing the report under subsection (f). For instance, the doctor may already have an examination scheduled within the seven day period following the receipt of the functional job descriptions from the employer or the Work Status Report from an RME doctor.

OTHER COMMENTS

Comment: Commenter asked how treating doctors are to now send medical information to carriers and asked for clarification as to whether the doctor is to dictate a letter and send it with the bill.

Response: Rather than providing medical reports through the TWCC-61 and TWCC-64 on a scheduled basis, after July 15, 2000, doctors will simply be required to provide medical information to carriers as required in the Commission's fee and treatment guidelines and rules.

The Commission recently adopted §133.1 (relating to Definitions for Chapter 133, Benefits - Medical Benefits) which defines "complete medical bill" and specifies documentation that will be required with certain types of bills. Among the requirements are that for the three highest level office visits, single and interdisciplinary programs such as work conditioning programs, work hardening programs, and physical medicine treatment(s) and/or services(s), providers will have to include: a copy of progress notes and/or SOAP (subjective/objective assessment plan/procedure) notes, which shall substantiate the care given and the need for further treatment(s) and/or services(s), and indicate progress, improvement, the date of the next treatment(s) and/or service(s), complications, and expected release dates.

Comment: Commenter requested that the Commission revise the definition of "Treating Doctor" to include physician assistants and nurse practitioners which the commenter says are licensed to see, treat and care for patients. The commenter expressed the belief that the Commission regards physician assistants and nurse practitioners as "non-providers" and that the Commission does not have the authority to prevent them from treating injuries or signing reports. The commenter suggested that the Commission's current policies (as he understands them) towards physician assistants and nurse practitioners may cause them to leave the system thus reducing access to medical care.

Response: The Commission disagrees. This rule does not address the definition of a treating doctor. Further the Commission does not have the authority to change the definition of treating doctor which is defined in the Texas Labor Code. Texas Labor Code §401.011(42) states that the term "treating doctor" "means the doctor who is primarily responsible for the employee's health care for an injury." Texas Labor Code §401.011(17) provides that the term "doctor" "means a doctor of medicine, osteopathic medicine, optometry, dentistry, podiatry, or chiropractic who is licensed and authorized to practice." Therefore allowing physician assistants and nurse practitioners to serve as treating doctors would require a change in the statute.

The Texas Labor Code also requires that certain actions be performed by a "doctor" or by the "treating doctor," e.g. §408.123 requires that it be a doctor who certifies maximum medical improvement and assigns an impairment rating. §403.018 requires the Commission to implement a program to encourage employers and treating doctors to discuss the availability of modified duty and return to work.

Regarding the issue of physician's assistants and nurse practitioners signing reports, this rule requires treating or referral doctors to file Work Status Reports and these doctors are responsible for evaluating and reporting on the employee's work status. A treating doctor is the person who is required and responsible for an employee's health care and it is that person's judgement that is sought regarding the employee's ability to return to work. This is in keeping with the statutory mandate that the Commission facilitate communication about return to work between employers and treating doctors. In some situations, the treating doctor refers an employee to another doctor who then is primarily treating the employee and as such is in the best position to provide return to work information in the place of the treating doctor.

The Commission considers physician assistants and nurse practitioners to be an important part of the workers' compensation system as are all health care practitioners authorized by the Texas Labor Code who provide reasonable and necessary health care that cures or relieves the effects naturally resulting from the compensable injury; promotes recovery; or enhances the ability of the employee to return to or retain employment.

Comment: Commenters suggested that the TWCC-73 is duplicative of the TWCC-61 (Initial Medical Report) and TWCC-64 (Subsequent/Specific Medical Report) and thus wastes time and money. It was suggested that the TWCC-73 be discontinued or replace the TWCC-61 and TWCC-64.

Response: The Commission agrees there are some similarities between the TWCC-73 and the TWCC-61 and TWCC-64. However, as of July 15, 2000, the TWCC-61 and the TWCC-64 will no longer be required reports and thus the commenters' concern is moot. Further, the TWCC-73 provides a standard mechanism to report on work status and work restrictions. A standard mechanism makes it easier for carriers, employers, and employees to understand what the employee's work status and work restrictions are. This will improve claims management and make it easier to develop appropriate modified duty offers.

Comment: Commenter suggested that the rule should identify a specific violation level for failure of the doctor to comply with the rule.

Response: The Commission disagrees. As noted in preambles to other recently adopted or amended rules, the Texas Labor Code provides numerous avenues for enforcement by the Commission to ensure compliance with the statute and rules. Listing all those avenues in each rule would be redundant to the statute and would unnecessarily lengthen Commission rules. The Commission has been deleting specific enforcement language from rules because in some cases, the language did not cover all the Commission's enforcement options and the Commission does not want this to be seen as intent to limit its authority to take enforcement action as authorized by the statute. In the immediate case, the statute authorizes the issuance of a penalty not to exceed $500 for a failure to timely file required reports or records and authorizes issuance of a penalty not to exceed $10,000 and a cease and desist order for repeated administrative violations or allowing, as a business practice, the commission of repeat administrative violations. The statute also allows for other enforcement actions such as sanctions and removal from the Commission's approved doctors list.

Comment: Several commenters expressed concern regarding Advisory 2000-01 which was issued by the Commission to inform system participants of potential changes to §129.5 and the TWCC-73 form. The Commenters felt that the Advisory 2000-01 was improperly used to suspend an adopted rule which is not legal. The specific language from the advisory that the commenters were concerned with read: " [g]iven the pending revisions, until further notice, the Commission will not require doctors to use the TWCC-73 form or to meet the turn-around time of one working day from the date of examination. Use of the Form TWCC-73 in the interim is optional."

Response: The Commission agrees that the language of the advisory could have better expressed its intent. With the changes being considered to the rule and form, the Commission felt it was necessary to provide system participants with information about these changes. In addition, the implementation of reporting in accordance with §129.5 turned out to be different than was initially anticipated by the Commission when the rule was adopted. In many cases, doctors learned about the new rule for the first time when a carrier called them looking for a report. Further, many providers' offices had set up patient databases to help fill out forms to speed up the process and improve accuracy but had not been able to update them to file the TWCC-73.

Regarding the issue of suspending use of the TWCC-73 by advisory, §129.5 requires doctors to file the Work Status Report "in the form and manner prescribed by the Commission." Initially, the Commission prescribed the original TWCC-73 form as being "the form and manner" for filing the Work Status Report. As noted, many providers integrate TWCC forms into their patient database systems. Once it became apparent that the TWCC-73 form was going to be revised, the Commission made its use optional until such time as the form could be finalized to make sure that doctors and carriers did not waste money integrating a soon-to-be- revised form into their systems. This was clearly not beyond the Commission's authority to do by advisory. It is also important to note that although the advisory made the TWCC-73 form optional, the advisory did not relieve doctors of the responsibility to file a Work Status Report required by §129.5.

Unfortunately the language in the advisory regarding the one day turn around gave the wrong impression to readers. Given the significance of the change in reporting requirements that the new rule represented and the fact that the Commission had recently proposed changing the rule to extend the filing deadline from the end of the next working day after the examination to the end of the second working day after the examination, the Commission wanted to essentially set up a grace period and give system participants time to get used to the new reporting. It should be noted that it was not just the doctors who were having problems with the rule. Part of the difficulties that doctors were having with the original one day deadline was obtaining carrier transmission information. Often the carrier's first notice of the injury was the doctor's office calling to find out what facsimile numbers the carrier and employer wanted the report sent to. Apparently many carriers and employers had not yet adjusted their processes to provide this information when the doctor's offices called. Few system participants were adequately prepared to implement this new reporting requirement.

The basic intent of the language in the advisory was to communicate that at this time, the Commission was not going to stringently enforce the one day filing deadline at that time. The Texas Labor Code clearly gives the Commission the authority and the responsibility to consider various factors in deciding what enforcement actions may be appropriate in a given situation. Among the factors the Commission is required to consider in issuing penalties is "other matters that justice may require" and "the penalty necessary to deter future violation." In this case, the Commission felt that rigid enforcement of the one day filing requirement when revision of this timeframe was being considered and when the rule represented major changes in reporting in the system, was not yet appropriate.

Comment: Commenter noted that the TWCC-73 was designed to assist in providing information to the carrier in handling the injured employee and hoped that the information on the report would also help carriers to timely pay medical bills. Another commenter suggested that carriers need to be clear about the information they want provided in order to secure payment for medical services. The commenter was concerned that the TWCC-73 would be another form that doesn't answer the carriers needs, and that they will then delay payment of services pending additional documentation: "It's a constant battle and it truly increases overhead in the offices. We already accept reduced fees, we already accept a certain amount of paperwork to fulfill TWCC statutes. Please don't allow the carriers any more latitude to deny payment on services because the stipulated forms don't answer their 'needs'." Commenter suggested that the information requested on the form should answer most, if not all questions about a patient's progress and the rationale for further treatment: "Doctors will continue to create full medical records for their own use, because that is good medicine. TWCC forms will never replace, nor should they, a complete medical record. . . . However, unless there is a compensability issue, payment should be made based on the information on these forms."

Response: The Commission disagrees that the TWCC-73 should have a significant impact on timely payment of medical bills (other than perhaps serving as earlier notice of the injury). The TWCC-73 primarily communicates the employee's work status. It does not address whether specific medical care is reasonable or necessary and does not represent documentation required to get a bill paid. The primary intent of §129.5 and the Work Status Report is to improve communication between treating doctors and employers to facilitate early return to work and to provide a standard reporting system for work status within the Texas workers' compensation system. It is also hoped that one of the benefits of the rule will be a reduction in calls to doctor's offices by carriers and employers attempting to obtain work status or disability information and that employers and carriers will find claims management to be easier. The commenters' concerns focus more on issues covered by new §133.1 which includes a definition of a complete medical bill.

Comment: Commenter suggested that if implemented, the rule will need a 6-month phase-in because it will take that long to re-write computer data bases and complete training of providers.

Response: The Commission agrees in part. The Commission believes that providers might need up to six months to incorporate the TWCC-73 form into their systems but disagrees that the Commission should delay implementation of the changes to the rule for six months. As changed, the rule reduces the frequency at which the reports are required, increases the amount of time to file the report, and provides for reimbursement of the report. If these amendments were delayed, doctors would be required to file reports within one working day, as often as once every two weeks, and would not get paid for the reports. Therefore, although the Commission will allow a six month implementation period for use of the new form, the Commission will not delay implementing changes to the rule itself.

Comment: Commenter suggested that carriers be required to post their fax numbers on the TWCC Web Page: "Carrier fax numbers can often be difficult to find and we are often told that a faxed document has been sent to the wrong place, therefore we repeatedly fax to carriers."

Response: The Commission agrees that something like this would be a valuable way to improve communication between carriers and providers and help ensure timely reporting. However, the Commission cannot accommodate the commenter's suggestion at this time.

This suggestion assumes that carriers would have one facsimile number for submission of all Work Status Reports. Although smaller carriers or those that have only one claims management office might only have one facsimile number, the reality of the system is that the majority of claims are handled by carriers that have multiple claims management offices and also may utilize multiple claims management companies (each of which could have multiple offices). Given that the call from the doctor's office asking for a facsimile number may be the first the carrier has heard of the claim, the carrier might have to make a decision right there as to where the claim is likely to be assigned so that the correct number can be given. Other technical and practical factors will also need to be considered.

It may be possible to proactively identify carrier facsimile numbers on a per employer basis (since many carriers seem to divide claims management by employer) or on a regional basis (i.e. claims in this region go to a particular facsimile number). The Commission is currently involved in a business process improvement effort which is examining access to contact information such as the commenter suggested and this suggestion has been forwarded to that group for their consideration. Further, as suggested previously, carriers or employers could be proactive by developing cards that contain contact information on them which would be given to an employee the first time the employee goes to the doctor.

In the mean time, doctors are encouraged to document difficulties they have obtaining correct facsimile number information from carriers (i.e. date and time of contact, person spoken with, etc). This information could be helpful in determining how large the problem is and what the best mechanism is to deal with it. Doctors should probably record this information on a routine basis anyway to show who at the carrier gave them the number the report was faxed to so that the carrier can straighten out any problem it has on its end.

Comment: Commenter asked whether the TWCC-73 would replace the forms that most large employers use for return to work purposes and whether doctors would be able to ignore the employers' forms in favor of the TWCC-73.

Response: The Commission does not require doctors to fill out reports used by employers. However, it is worth noting that the Commission has received input from a number of employers who have indicated that they like the new draft of the form that was circulated for input separately from the rule and that they felt it would meet their needs from a claims management and return to work point of view. Therefore, it is likely that many employers will adopt use of the Commission's standard form. Part of the reason for having a standard form is to make it easier to fill out for doctors and easier to read and understand for carriers, employers, and employees and to avoid the use of multiple forms. That is why the Commission will be mandating use of a standard form.

Comment: Commenter felt that "Work Status" should continue to refer to any restrictions the patient may have and should not necessarily refer to specific work activities: "It should be the responsibility of the employer to provide work duties that fit within the restrictions outlined by the treating doctor. In the event the employer and/or insurance carrier agree work duties are available within these restrictions, they should be held accountable. If work duties within these restrictions are not available, the patient should not be penalized for failure to perform work duties that might cause increased symptoms or further injury."

Response: The Commission agrees. As set out in subsection (a), "work status" basically addresses whether the employee's medical condition allows the employee to return to work and if so, whether this return is with or without restrictions. If an employer offers an employee work and it turns out that the work duties do not comply with the doctor's restrictions and/or are not within the employee's ability to return to work, the employee's work status does not change. The employee is still considered to be able to return to work with restrictions. The difference is that the work offered is not within the employee's ability to work and thus the employer's offer could be challenged as not being a bona fide offer of employment. It is not the intent of this or any other Commission rule that employees should return to work that is not appropriate to the employee's medical condition.

The amendment is adopted pursuant to the following statutes: Texas Labor Code, §401.024 as amended by the 76th Texas Legislature, which provides the Commission the authority to require use of facsimile or other electronic means to transmit information in the system; Texas Labor Code, §402.042, which authorizes the Executive Director to enter orders as authorized by the statute as well as to prescribe the form manner and procedure for transmission of information to the Commission; Texas Labor Code, §402.061, which authorizes the Commission to adopt rules necessary to administer the Act; Texas Labor Code, §406.010, which authorizes the Commission to adopt rules regarding claims service; Texas Labor Code, §408.004, which addresses required medical examinations and the affect of a carrier selected doctor's opinion of payment of TIBs; and Texas Labor Code, §413.018, as amended by the 76th Texas Legislature, which requires the Commission develop a program to encourage employers and treating doctors to communicate about modified duty offers.

The amendment is adopted pursuant to the following statutes: Texas Labor Code, §§401.024, 402.042, 402.061, 406.010, 408.004, and 413.018.

§129.5.Work Status Reports.

(a)

As used in this section:

(1)

the term "doctor" means either the treating doctor or a referral doctor, as defined by §133.4 of this title (relating to Consulting and Referral Doctors);

(2)

"substantial change in activity restrictions" means a change in activity restrictions caused by a change in the employee's medical condition which either prevents the employee from working under the previous restrictions or which allows the employee to work in an expanded and more strenuous capacity than the prior restrictions permitted (approaching the employee's normal job);

(3)

"change in work status" means a change in the employee's work status from one of the three choices listed in subsection (a)(4) of this section to another of the choices in that subsection; and

(4)

the term "work status" refers to whether the injured employee's (employee) medical condition:

(A)

allows the employee to return to work without restrictions (which is not equivalent to maximum medical improvement);

(B)

allows the employee to a return to work with restrictions; or

(C)

prevents the employee from returning to work.

(b)

The doctor shall file a Work Status Report in the form and manner prescribed by the Commission.

(c)

The doctor shall be considered to have filed a complete Work Status Report if the report is filed in the form and manner prescribed by the Commission, signed, and contains at minimum:

(1)

identification of the employee's work status;

(2)

effective dates and estimated expiration dates of current work status and restrictions (an expected expiration date is not binding and may be adjusted in future Work Status Reports, as appropriate, based on the condition and progress of the employee);

(3)

identification of any applicable activity restrictions;

(4)

an explanation of how the employee's workers' compensation injury prevents the employee from returning to work (if the doctor believes that the employee is prevented from returning to work); and

(5)

general information that identifies key information about the claim (as prescribed on the report).

(d)

The doctor shall file the Work Status Report:

(1)

after the initial examination of the employee, regardless of the employee's work status;

(2)

when the employee experiences a change in work status or a substantial change in activity restrictions; and

(3)

on the schedule requested by the insurance carrier (carrier), its agent, or the employer requesting the report through its carrier, which shall not to exceed one report every two weeks and which shall be based upon the doctor's scheduled appointments with the employee.

(e)

The Work Status Report filed as required by subsection (d) of this section shall be provided to the employee at the time of the examination and shall be sent, not later than the end of the second working day after the date of examination, to the carrier and the employer.

(f)

In addition to the requirements under subsection (d), the treating doctor shall file the Work Status Report with the carrier, employer, and employee within seven days of the day of receipt of:

(1)

functional job descriptions from the employer listing available modified duty positions that the employer is able to offer the employee as provided by §129.6(a) of this title (relating to Bona Fide Offers of Employment); or

(2)

a required medical examination doctor's Work Status Report that indicates that the employee can return to work with or without restrictions.

(g)

Filing the Work Status Report as required by subsection (f) of this section does not require a new examination of the employee.

(h)

The doctor shall file the Work Status Report as follows:

(1)

A report filed with the carrier or its agent shall be filed by facsimile or electronic transmission;

(2)

A report filed with the employer shall be filed by facsimile or electronic transmission if the doctor has been provided the employer's facsimile number or e-mail address; otherwise, the report shall be filed by personal delivery or mail; and

(3)

A report filed with the employee shall be hand delivered to the employee, unless the report is being filed pursuant to subsection (f) of this section and the doctor is not scheduled to see the employee by the due date to send the report. In this case, the doctor shall file the report with the employee by facsimile or electronic transmission if the doctor has been provided the employee's facsimile number or e-mail address; otherwise, the report shall be filed by mail.

(i)

Notwithstanding any other provision of this title, a doctor may bill for, and a carrier shall reimburse, filing a complete Work Status Report required under this section or for providing a subsequent copy of a Work Status Report which was previously filed because the carrier, its agent, or the employer through its carrier, asks for an extra copy. The amount of reimbursement shall be $15. A doctor shall not bill in excess of $15 and shall not bill or be entitled to reimbursement for a Work Status Report which is not reimbursable under this section. Doctors are not required to submit a copy of the report being billed for with the bill if the report was previously provided. Doctors billing for Work Status Reports as permitted by this section shall do so as follows:

(1)

CPT code "99080" with modifier "73" shall be used when the doctor is billing for a report required under subsections (d)(1), (d)(2), and (f) of this section;

(2)

CPT code "99080" with modifiers "73" and "RR" (for "requested report") shall be used when the doctor is billing for an additional report requested by or through the carrier under subsection (d)(3) of this section; and

(3)

CPT code "99080" with modifiers "73" and "EC" (for "extra copy") shall be used when the doctor is billing for an extra copy of a previously filed report requested by or through the carrier.

(j)

As provided in §126.6(f) of this title (relating to Order for Required Medical Examinations), a doctor who conducts a required medical examination (on anyone's behalf) in which the doctor determines that the employee can return to work immediately with or without restrictions, shall file the Work Status Report required by this section, but shall do so in accordance with the requirements of §126.6(f).

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 26, 2000.

TRD-200004433

Susan Cory

General Counsel

Texas Workers' Compensation Commission

Effective date: July 16, 2000

Proposal publication date: March 10, 2000

For further information, please call: (512) 804-4275