State News : Texas

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


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


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


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


Texas

STONE LOUGHLIN & SWANSON, LLP

  512-343-1385

Stone Loughlin & Swanson joined in honoring our good friend Marvin Kelly, recently retired after 30 years as the first, and to date only, Executive Director of the Texas Property and Casualty Insurance Guaranty Association (TPCIGA).  For those that don’t know, when an insurance company is declared impaired, TPCIGA fulfills certain policy obligations of the impaired insurance company including the obligation to pay workers’ compensation benefits.  Marvin was instrumental in creating what is now commonly recognized as one of the best, if not the best, insurance guaranty associations in the country.  We wish him well and appreciate his many years of service protecting Texas claimants and policyholders impacted by insolvent insurance companies.  
 


Copyright 2022, Stone Loughlin & Swanson, LLP 

Reliable sources inform us that Cole Fulks has replaced Kevin Henry as the Administrative Law Judge in Tyler. Cole joins the agency after representing injured workers for several years at Bailey & Galyen. Welcome, Cole!

Erica De La Cruz has been promoted to Deputy Commissioner of Claims and Customer Services. The new program area includes Claims Services, Self-Insurance Regulation, and the Subsequent Injury Fund.

Mary Landrum, the new Deputy Commissioner for Health and Safety, will oversee the Office of the Medical Advisor, Health Care Business Management, Medical Fee Dispute Resolution, Workplace Safety, and Return to Work programs. She will also continue to oversee the operations, training, and certifications for the Designated Doctor program.

Kimberly Donovan, who joined DWC in November, has been named as DWC’s new Deputy Commissioner of Operations and External Relations. This new program area includes Communications, External Relations, and the Research & Evaluation Group.

Tammy Campion is the new Deputy Commissioner for Business Process, which includes the management of DWC’s technology modernization efforts, Electronic Data Interchange (EDI) processes, system data and electronic records management.

Kate Sidora is the new Director of External and Media Relations and will manage DWC’s government relations, legislative activities, and stakeholder outreach.
 

Copyright 2022, Stone Loughlin & Swanson, LLP 

Sehgal & Sons Enterprises (Ultra Business Services Inc.), owned by Kunal Puri, was convicted of first-degree felony for defrauding its workers' compensation carrier, Texas Mutual Insurance Company. From August 2011 through December 2014, the company concealed payroll by having two separate payroll accounts with the Texas Workforce Commission, but reported only the small payroll account to Texas Mutual. The company has been ordered to pay $300,000.


Copyright 2022, Stone Loughlin & Swanson, LLP 

The DWC recently began holding contested case hearings in Austin at the new Barbara Jordan Building in the Capital Complex, located at 1601 Congress Avenue.  However, parking and entering the building is so complicated that it prompted DWC to create the following instructional video: 

https://www.youtube.com/watch?v=e4PMzgw52eA

The video discusses parking options “if you are driving to your Austin hearing.”  Due to the parking situation, you might consider some easier alternatives than driving like taking the bus or an e-scooter.  The video also reminds participants not to show up more than 15 minutes before the hearing because they won’t be allowed in the building before then.

Here is actual video showing the dire consequences when one injured worker arrived too early for his hearing in Austin:

https://youtu.be/CrRudfWIKmA

SLS scoped out the situation and after reaching several dead ends and approaching multiple locked entrances, confirmed that the new Austin digs are indeed a veritable maze due to the ongoing construction and construction fences surrounding the building.  

Therefore, to help you find your way we’ve created a map to simplify matters: 
 

 
Good luck trying to find your way in! And be sure not to arrive too early for that CCH.


Copyright 2022, Stone Loughlin & Swanson, LLP

Evidence-based medicine is the standard of compliance written into the Labor Code and used in evaluating causation issues, but in our experience the standard is often ignored or not understood.  For example, studies show that baseline MRIs do not predict future low back pain, and up to 93% of them show degenerative disc disease regardless of whether the patient is reporting symptoms.  The ODG in fact warns against attempting to correlate MRIs with symptoms.  There is a great new summary written by a well-respected doctor which was provided to us that has the medical statistics thoroughly reviewed for neck, thoracic, lumbar, wrist and hand, shoulder and knee imaging findings.  Of particular interest is the information regarding evaluating the chronicity in shoulder issues and the explanation of the reasons why so many rotator cuff surgeries fail over time.  Ever tried sewing tissue paper to tissue paper?  A link to the article can be found here.    


Copyright 2022, Stone Loughlin & Swanson, LLP 

We can’t send a newsletter out without mention of KCTX.  We have 35 current scholarship recipients and are especially grateful to the brave and water-proof golfers who participated in a very soggy golf tournament at the Dallas Cowboy’s Golf Club on October 28th.  The final numbers aren’t in yet, but the enthusiasm for the cause was not dampened at all. There is pride in overcoming adversity, and the KCTX Board (especially Wendy Schrock with Downs & Stanford, Joanne Anderson with OIEC, Catherine Benavidez with IMO, and all the volunteers) should be very proud of what they managed to weather through – they are true KCTX Champions!

Newsflash: Save the date for the KCTX Top Golf event in The Colony on November 13th from 12:00 noon to 3:00 p.m.  The event is in conjunction with the PRIMA conference in the Frisco, Texas area.  If you are attending PRIMA and get a copy of this newsletter, make sure to sign up!
 

Copyright 2022, Stone Loughlin & Swanson, LLP 

On October 20, 2022, the Texas Comptroller’s office ruled in a Private Letter that Designated Doctor exam charges are now taxable. We worry that this sales-and-use tax will drive the remaining Designated Doctors and independent doctors who perform Required Medical Exams and peer reviews further out of the system. The decision is specific to Designated Doctors, but the rationale may apply across the board for doctors who provide services other than medical treatment for system participants.  Of note, sales tax has to be collected “up front”, even before the doctor is paid his fee for the services, and even if they never get paid (or are paid late) on their bill.  No doubt the DWC will have some head-scratching to do to figure out the EDI ramifications of this development, since the decision specifically states that these services are not medical treatment.  Might this mean that there is no EDI reporting requirement? We shall see once the dust clears. We note that large exam scheduling companies can best handle this new administrative burden. The word is that DWC took the position with the Comptroller that these services should not be subject to sales-and-use tax. So much for the concept of comity.


Copyright 2022, Stone Loughlin & Swanson, LLP 

Crime doesn’t pay forever. On October 11, 2022, Ms. Khyati Undavia, owner of Memorial Compounding Pharmacy, was sentenced to 27 months in prison by U.S. District Judge Andrew Hanen.  Ms. Undavia was indicted on July 9, 2021 for conspiracy to defraud federal government programs by billing for compounded drugs that were not medically necessary and that she paid doctors an illegal kickback to prescribe.  She pled guilty on October 12, 2021. The judgment against Ms. Undavia orders her to pay restitution of six million dollars to Tricare and six million dollars to the U.S. Department of Labor, Office of Workers’ Compensation Programs (DOL-OWCP).  

Memorial Compounding Pharmacy was also active in the Texas workers’ compensation system.  The Division issued numerous medical fee dispute decisions ordering carriers to pay Memorial for its expensive compounded topical creams on the grounds that Memorial didn’t have to get preauthorization. Nonetheless, at least three different SOAH administrative law judges have reached the opposite conclusion that Memorial was required to obtain preauthorization for its compounded creams and therefore, it should not be paid.  Upon her release, Ms. Undavia will be excluded from participating as a provider in Medicare, Medicaid, and all Federal health care programs. However, the judgment does not prevent her from participating in the Texas workers’ compensation system.  We may see her again one day.
 
To view the judgment, click here.


Copyright 2022, Stone Loughlin & Swanson, LLP

Amber Morgan is moving up to the DWC’s Appeals Panel from her position as an Administrative Law Judge.  She also has the distinction of having the position of president of the Texas State Bar Worker’s Compensation section. Also on the move is Nick Morgan, who will make the transition from private practice representing injured workers to be the resident administrative law judge in the Waco field office.  We look forward to these changes and wish them both the best!

 

Copyright 2022, Stone Loughlin & Swanson, LLP

DWC’s Subsequent Injury Fund (a separate account at the State Treasury) was recently audited by an actuary.  The SIF is funded solely by death benefit payments from insurance carriers where a compensable death occurs but there is no eligible beneficiary, or the claim for benefits is untimely.  We don’t understand all the numbers, but the bottom line appears to be that insurance carriers are safe from being assessed to make up for any negative balance at the SIF for the foreseeable future.  A link to the report can be found here


Copyright 2022, Stone Loughlin & Swanson, LLP