TWCC Penalizes Carriers for Late Benefit Payments

The Texas Workers’ Compensation Commission (TWCC) issued 62 Notices of Violation (NOVs) to insurance carriers on Nov. 9, 2004, for a total of $155,500 in penalties for late initial payments of Temporary Income Benefits (TIBs) to injured workers.

The Commission also issued 45 NOVs to insurance carriers for a total of $7,626 in penalties for inaccurate reporting of electronic data. Both types of violations resulted from audits of initial TIBs payments electronically reported by the carriers to the Commission during the four-week period of June 1 to June 30, 2004.

The NOVs are part of a new enforcement strategy to ensure the prompt and timely initiation of income benefits to injured workers. The strategy is in direct support of Commission Rule 124.3 as amended in March 2004 after the passage of House Bill 2199 authored by Rep. Burt Solomons in the Texas Legislature.

The Commission will continue to monitor insurance carriers’ performance on the initiation of income benefits and issue NOVs when appropriate.

Any questions regarding the periodic notices or any other compliance issues may be directed to the Commission’s Compliance and Practices Division at (512) 804-4700.