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The Texas Department of Insurance has adopted the National Council on Compensation Insurance Inc.'s statistical plan, which it will use as the basis of state collection of workers compensation statistics and data starting next year.
Boca Raton, Florida-based NCCI, a nationwide workers comp ratings and research organization, is the comp rating agency for 36 states and the District of Columbia. NCCI provides statistical information for the Texas insurance department, which currently acts as the state's workers comp rating agency.
In March, the insurance department adopted NCCI's basic manual, which includes classification codes and endorsements for workers comp policies, according to an insurance department order effective July 29. The department said it adopted NCCI's statistical plan as part of its transition to NCCI's basic manual.
The Texas department's current statistical plan includes “minimum statistical reporting requirements for exposure, premium, and loss data for each workers' compensation policy a carrier issues,” while the NCCI new statistical plan “requires carriers to report more detailed information than the current” plan, the order said.
The NCCI statistical plan is effective for Texas workers comp policies issued on or after Jan. 1, 2015, the order said. The current statistical plan used by the Texas insurance department will remain in effect for workers policies issued before next year.
“Texas carriers will benefit from having more uniform statistical data reporting requirements among states,” the order reads. The state insurance department “will benefit by having more detailed information to use in regulating the workers compensation market. Carriers and policyholders will also benefit from NCCI's technical expertise, infrastructure, and support.”
“Texas exceptions” will be used with the NCCI statistical plan, including unspecified differences in how the state handles electronic filing of statistical data, fraudulent claims and noncompensable workers comp claims, the order says.
ORLANDO, Florida — Workers compensation insurers and state lawmakers should implement consistent, evidence-based medical guidelines to improve treatment for comp claimants and control spending, said Joseph Paduda, principal of Madison, Connecticut-based consulting firm Health Strategy Associates L.L.C.