Texas House Bill HB1305

Texas 2019 - 86th Regular

Caption

Relating to a cost-of-living increase applicable to death benefits paid under the workers' compensation system.

Impact

If enacted, this bill will have a significant impact on the calculation of death benefits in the state. Currently, death benefits are fixed at 75 percent of an employee's average weekly wage without an automatic adjustment for inflation. By introducing an annual adjustment based on the CPI-W, beneficiaries will receive a benefit that keeps pace with inflation, thereby improving their financial security over time. This change is especially crucial for families who may rely heavily on these benefits following the loss of a loved one due to workplace-related injuries.

Summary

House Bill 1305 proposes an amendment to the Texas Labor Code regarding death benefits within the workers' compensation system. The primary focus of the bill is to introduce a cost-of-living increase applicable to these benefits, ensuring that the compensation paid to beneficiaries adjusts according to inflation. This adjustment is determined by the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is published by the Bureau of Labor Statistics.

Contention

While the bill is expected to provide necessary financial relief to beneficiaries, there may be points of contention regarding its implementation and the implications for insurance carriers. Critics may raise concerns about the financial burden placed on insurance companies and how this might affect their operations. Additionally, there could be discussions around whether the CPI-W is the most appropriate measure for adjusting benefits, with some advocating for alternative indices that may better reflect the living costs faced by families receiving these benefits. Overall, the passage of HB1305 could lead to heated debates as stakeholders weigh the benefits of increased support for families against the operational implications for insurers.