Relating to workers' compensation compensability disputes, examinations to define the compensable injury and notifications to health care providers regarding compensability disputes.
The bill introduces amendments to the Labor Code that clarify the responsibilities of insurance carriers when contests of compensability occur. Notably, insurance carriers are now required to provide written notification to healthcare providers if they contest an injury's compensability. Prior to this notification, they cannot deny payment for healthcare services, creating a more transparent system for healthcare providers and injured employees alike.
SB1696 addresses the disputes over workers' compensation related to compensability of injuries in Texas. The bill mandates that an injured employee must submit to a single medical examination, which can be requested by either the insurance carrier or the injured employee. This provision aims to streamline the process of defining compensable injuries, thereby reducing the complexity and disputes that can arise during claims.
One significant aspect of SB1696 is that it includes a stipulation that if an insurance carrier does not contest the compensability of the injury within 60 days of notification, they waive their right to do so. This provision places pressure on carriers to act promptly and ensures that injured employees receive timely benefits without delay. Critics might argue that this could place unwarranted burdens on insurance carriers, demanding rapid responses that could lead to administrative challenges in processing claims effectively.