Workers' Compensation Terms in Texas
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Questions and Answers

Which of the following best describes an 'out-of-network' healthcare provider in the context of workers' compensation?

  • A provider who is under contract with a health maintenance organization but not a workers' compensation network.
  • A provider who specializes in occupational diseases but is not employed by the company.
  • A physician, healthcare provider, or hospital not contracted with a relevant network. (correct)
  • A provider who has completed all required training and certification.
  • What is the primary role of the Office of Injured Employee Counsel (OIEC)?

  • Providing legal representation to all injured employees.
  • Managing the Official Disability Guidelines database.
  • Overseeing performance assessments of insurance carriers.
  • Assisting injured workers with their workers' compensation disputes. (correct)
  • What constitutes an 'occupational disease' in the context of workers' compensation?

  • A sickness or disease arising while an employee is performing their job duties. (correct)
  • Any infectious disease from outside the workplace that causes the employee to miss work.
  • Any illness or disease an employee contracts, regardless of where it originated.
  • An illness that develops from a pre-existing condition independent of working conditions.
  • What does 'peer review' refer to in the context of healthcare within workers' compensation?

    <p>A chart review (not in person) of a claimant's health care medical records. (A)</p> Signup and view all the answers

    What is the primary role of an independent review organization in workers' compensation cases?

    <p>To determine the medical necessity and appropriateness of healthcare services provided to injured employees. (A)</p> Signup and view all the answers

    What are 'interrogatories' used for in regards to a DWC hearing?

    <p>To submit written questions to the other party prior to the hearing (B)</p> Signup and view all the answers

    What course of action can be taken if a party disagrees with a decision made during the DWC dispute resolution process?

    <p>Appeal the decision for judicial review. (D)</p> Signup and view all the answers

    What is the minimum impairment rating an employee must have to apply for supplemental income benefits (SIBs)?

    <p>15% (A)</p> Signup and view all the answers

    If an employee sustains a work-related injury causing wage loss, what type of benefits may they be eligible for after a seven day waiting-period?

    <p>Temporary income benefits (TIBs) (A)</p> Signup and view all the answers

    What is the role of a third-party administrator in the context of WC insurance?

    <p>To collect insurance premiums and adjust claims for an insurance carrier (A)</p> Signup and view all the answers

    What is the role of a treating doctor in the workers' compensation system?

    <p>To provide primary care to an injured employee and refer to specialists (B)</p> Signup and view all the answers

    An 'unjustified complaint' is characterized by which of the following?

    <p>A concern where there is no apparent violation of a standard. (A)</p> Signup and view all the answers

    What is the function of a utilization review agent?

    <p>To review medical services for necessity before, during, or after they are provided. (B)</p> Signup and view all the answers

    What is the role of an 'expert witness' in a workers' compensation case?

    <p>To offer their unique knowledge based on education or experience, that the average person does not possess. (A)</p> Signup and view all the answers

    What does the 'extent of injury' refer to?

    <p>The medical conditions that are part of an injured employee’s work related injury. (C)</p> Signup and view all the answers

    Which group is considered part of the 'first responder' category?

    <p>Paramedics working for a political subdivision in Texas (D)</p> Signup and view all the answers

    Which of the following best describes a 'political subdivision' in the context of workers' compensation?

    <p>A local government entity like a county or a school district that provides workers' compensation through a self-insurance pool. (C)</p> Signup and view all the answers

    What does a 'reconsideration' request involve?

    <p>A request to an insurance carrier to review its denial of medical services or income payments. (D)</p> Signup and view all the answers

    What is the significance of a 'pre-existing condition' in the context of WC claims?

    <p>A health condition that was present before an injury or before the WC insurance policy was put in place.</p> <p>This is a common way for an insurance company to deny medical treatment. (C)</p> Signup and view all the answers

    What is MMI (Maximum Medical Improvement)?

    <p>The point at which an injured employee's medical care has plateaued, and further medical improvement is very unlikely. (D)</p> Signup and view all the answers

    What is ODG?

    <p>The Official Disability Guidelines (A)</p> Signup and view all the answers

    What is a BRC (Benefit Review Conference)?

    <p>The first step in the TX WC dispute resolution process (B)</p> Signup and view all the answers

    What is a CCH (Contested Case Hearing)?

    <p>The second step in the TX WC dispute resolution process (C)</p> Signup and view all the answers

    What is the APD (Appeals Panel Decision)?

    <p>The third step in the TX WC dispute resolution process (B)</p> Signup and view all the answers

    What is "Judicial Review"?

    <p>The fourth step in the TX WC dispute resolution process (C)</p> Signup and view all the answers

    Flashcards

    Independent review organization

    A certified organization that reviews workers' compensation cases for medical necessity.

    Injured employee

    A person hurt while performing job-related activities for their employer.

    Insurance carrier

    An entity that provides medical and income benefits to injured employees.

    Interlocutory order request

    A request to pay or stop paying benefits until a dispute is resolved.

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    International Association of Industrial Accident Boards and Commissions

    An organization that standardizes data collection for workers’ compensation.

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    Interrogatories

    Written questions exchanged between parties during a DWC hearing discovery process.

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    Judicial review

    Appealing a DWC decision to a higher court for review.

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    Justified complaints

    Valid concerns about policy or rule violations in medical practice.

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    Over the counter drugs

    Medicines available for purchase without a prescription.

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    Occupational disease

    Sickness that arises from performing job duties.

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    Occupational hazard

    Conditions at work that increase injury or illness risk.

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    Peer review

    Evaluation of health care by similarly qualified professionals.

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    Permanent impairment

    Lasting damage from a work-related injury.

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    Plain Language Requirement

    Federal agencies must use clear language in communications.

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    Health Insurance Policy

    A written contract outlining claims insurers must pay.

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    Political Subdivision

    Local governments that offer workers' compensation via self-insurance.

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    Preauthorization

    Requesting insurance approval for treatment before it occurs.

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    Precertification Authorization

    Doctors submit treatment plans for insurer cost approval.

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    Pre-existing Condition

    A health issue present before receiving treatment.

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    Premium

    The cost of insurance protection for specific risks.

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    Quality Improvement

    Programs to enhance insurance carrier processes and services.

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    Reconsideration

    Requesting a review of a denial for services or payments.

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    Network Referrals

    Requests to see specialists within or outside a network.

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    Subscriber

    Employers providing workers’ compensation benefits to employees.

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    Subrogation

    Insurance carrier's right to pursue claims against third parties after paying a workers' comp claim.

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    Subsequent Injury Fund

    Fund to encourage hiring employees with pre-existing conditions and assist with new injuries.

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    Supplemental Income Benefits (SIBs)

    Benefits paid to injured employees after impairment income benefits end, requires application.

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    Temporary Income Benefits (TIBs)

    Benefits for injured employees losing wages for over seven days due to work-related injury.

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    Third Party Administrator

    Company handling insurance premiums, contributions, or claims for an insurance carrier.

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    Treating Doctor

    Physician providing primary care and specialist referrals for work injuries.

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    Unjustified Complaint

    Concern with no apparent violation of standards, rules, or laws.

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    Underwriter

    Person evaluating risks to set insurance rates and coverage.

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    Utilization Review

    Process monitoring quality and necessity of health care to reduce costs for insurers.

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    Experience

    The amount of workers’ compensation claims an employer has.

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    Experience modification

    The percentage change in insurance premiums based on claim losses.

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    Experience rating

    Adjusts workers' compensation premiums by comparing an employer’s losses to industry averages.

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    Expert witness

    A person with specialized knowledge in a subject beyond the average person's understanding.

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    Extent of injury

    The medical conditions related to a work-related injury of an employee.

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    Facility-based provider

    A healthcare provider associated with a medical facility.

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    Formulary

    A list of pre-approved prescription drugs for treatment.

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    First responder

    Emergency personnel such as police, firefighters, and paramedics.

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    Fringe benefits

    Extra benefits paid to employees beyond their salary.

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    Geographic service area

    The region where healthcare benefits are accessible for injured employees.

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    Study Notes

    State Specific Terms - Texas

    • Act: A set of Texas workers' compensation laws designed to protect both the employer and employee.
    • Act of God: An event caused by natural forces with no human involvement, such as floods, lightning, or earthquakes.
    • Adjuster: A representative of the insurance carrier who determines if the carrier is responsible for a claim and pays benefits if owed.
    • Administrative review: Examines a dispute's outcome, for example, the DWC Appeals Panel reviewing an administrative law judge's decision.
    • Adverse determination: A utilization review agent's finding that the health care services provided to an injured employee are not medically necessary, or are experimental or investigational.
    • Agent: A person who sells and services insurance policies; they must have a license from the Texas Department of Insurance (TDI).
    • Agent's license: A certificate of authority from the state allowing an agent to conduct business.
    • Agreement (in workers' compensation): A legal contract between parties involving an offer and acceptance, written on form 024, Benefit Dispute Agreement. An administrative law judge or benefit review officer must approve the agreement.
    • Annuity: A regular payment of money, either yearly or in installments, made either by the insurer to the injured employee or their beneficiary.
    • Appeal: The right to take a case to a higher level for review if a party is dissatisfied with a decision from dispute resolution.
    • Average weekly wage (AWW): The average amount an employer paid an employee each week in the 13 weeks before their injury or illness.
    • Balance billing: The practice of charging an injured employee the difference between the total cost of medical services and the amount covered by insurance.
    • Benefit review conference: An informal meeting held between parties and a DWC benefit review officer to discuss claim disputes.
    • Benefits (in workers' compensation): Payment or medical care provided by an employer's insurance to an injured employee.
    • Beneficiary: A person who receives benefits under an employer's workers' compensation policy following the death of the injured employee.
    • Case management: Coordinating medical services for an injured employee to enhance care and reduce costs.
    • Case manager: An experienced professional who coordinates the necessary health care services for an injured employee.
    • Catastrophic event: An event beyond one's control that interrupts the processing of claims for over two business days.
    • Certified network (workers' compensation): The TDI-certified healthcare delivery system of physicians and providers who make contracts to deliver medical and health care services to injured employees.
    • Certified self-insurer: A private employer who is approved to insure their own workers' compensation claims.
    • Certificate of authority: Gives an insurer the power to write insurance contracts in Texas and the powers granted to its agents.
    • Claim: A formal demand for benefits or a report of a workplace injury, filed by or on behalf of the injured employee.
    • Claimant: The person seeking payment of benefits.
    • Claimed injury: The work-related injury, disease, or illness for which an employee is claiming benefits from the insurance carrier.

    Continued

    • Classification: Grouping employees insured under a workers' compensation policy based on similar job characteristics and risk.
    • Compensable injury: An injury or illness that occurred while an employee was performing their job duties.
    • Complaint: A written statement alleging a violation of a workers' compensation law or rule.
    • Contested case hearing (CCH): A hearing held when disputes can't be resolved informally. All parties present evidence and arguments before a DWC administrative law judge.
    • Contested case hearing decision: A written decision from a DWC administrative law judge that resolves disputes on benefits, including findings of fact, conclusions of law, and whether benefits are owed.
    • Contributing injury: A previous work injury, medically proven to have lasting harm or impairment; impacts benefits due to the current injury.
    • Contribution: In certain situations, the insurance carrier can ask to reduce benefits if there is a prior work-related injury.
    • Course and scope: An injury that occurs while an employee is performing duties related to their employment and furthering the business interests of their employer.
    • Coverage verification: A method to check if an employer had workers' compensation insurance coverage on a specific date, usually done by the TDI website.
    • Date of service: The date healthcare services were provided by a healthcare provider or attorney.
    • Death benefits: Payments to families when an employee dies due to a work-related injury or illness.
    • Delegation: The process of appointing a person or group to perform specific tasks on behalf of another.
    • Designated doctor: A doctor chosen by the DWC to resolve disputes about medical conditions or work-related injuries.
    • Disability: An employee may have a disability if an injury prevents them from earning the wages they made in the 13 weeks before the injury; this is income loss from job, not a physical or mental condition.
    • Direct result: A requirement for supplemental income benefits, showing that the work-related injury was substantial, caused lasting effects (impairment), and prevents the employee from doing their job.
    • Dispute: A disagreement between parties in a workers' compensation claim, commonly about benefits or payment amounts.
    • Documentary evidence: Supporting documentation used in a workers' compensation case, including reports, medical records, or statements.
    • DWC: The Texas Department of Insurance, Division of Workers' Compensation.

    Continued

    • Electronic Data Interchange (EDI): Electronically transferring claim, medical, and insurance coverage data to DWC by the insurance carriers.
    • Emergency care: Includes medical or behavioral health services for severe pain, risks to health, disabling functions or significant issues to a pregnant woman or unborn child.
    • Exceptions to liability: Reasons why the insurance carrier might not be liable for a worker’s compensation claim (e.g., injuries happening off-duty, un-reported on time, or due to intoxication).
    • Exchange: Information that all parties in a claim must share before a conference or hearing concerning benefits.
    • Existence, duration, or extent of disability: Common disputes about whether a disability exists, its duration, or if it’s connected to a compensable injury.
    • Expedited: A quicker way to complete a process or action.
    • Experience: The total amount of claims (losses) resulting from workers' compensation an employer has incurred.
    • Experience modification: An adjustment to insurance premiums based on an employer's experience with workers' compensation claims.
    • Experience rating: Assessing insurance premiums based on an employer's workers' compensation loss experience compared to similar employers' loss experiences.
    • Expert witness: A person with special knowledge in a subject matter, by training or expertise.
    • Extent of injury: The range of medical issues related to the injuries sustained.
    • Facility-based provider: A healthcare provider working in a facility or facility-based setting, such as an emergency room, orthopedic surgeon or physical therapist.
    • Formulary: Authorized prescription drug list by insurance.
    • First responder: Emergency service workers (e.g. police, paramedics and other emergency medical personnel) in a political subdivision of Texas.
    • Fringe benefits: Compensation, over and above an employee's salary, such as health insurance, car allowance, or dry cleaning.
    • Geographic service area: Area where workers' compensation health care services are accessible. For injured employees, if the employer is within a network, services must be provided in that network's area.

    Continued

    • Good cause: A legitimate reason for taking or not taking an action.
    • Health care facility: Place that provides healthcare (e.g., hospital, emergency clinic, outpatient clinic).
    • Health care practitioner: Someone licensed or otherwise authorized to provide health care, even if not a medical doctor or M.D.
    • Health care provider: Health care facilities or practitioners.
    • Health Insurance Portability and Accountability Act of 1996 (HIPPA): A law concerning the national standards and national identifiers for healthcare transactions, and security/privacy of healthcare data
    • Impairment income benefits (IIBs): Income payments if an injury affects the body as a whole.
    • Impairment rating: A rating that shows what percent a work-related injury affects the entire body, as assigned by a health care provider
    • Independent review organization (in workers' compensation): An organization that reviews cases and establishes if the medical and health care provided to the injured employee is medically necessary and appropriate.
    • Injured employee: A worker hurt while performing work duties.
    • Insurance carrier: Provides medical and income benefits to injured workers. An insurance company, self-insurer, self-insurance group or governmental entity.
    • Interlocutory order request: Asking for a decision on medical or benefit payments to be held until a dispute is decided during a contested case hearing.
    • International Association of Industrial Accident Boards and Commissions (IAIABC): An organization related to workers' compensation that provides standards and data collection tools for states, analyzing policies, and suggesting model laws.
    • Interrogatories: Formal questions sent during case discovery.
    • Judicial review: The process of an injured employee appealing a DWC dispute to a court.

    Continued

    • Justified complaints: Valid concerns regarding violations of policies or rules in a medical or business setting.
    • Large group employer: An employer with 51 or more eligible employees in a previous year.
    • Letter of clarification: A letter sent by concerned parties to DWC for further information regarding a designated doctor’s report concerning a worker's injury.
    • Lifetime income benefits (LIBs): Long-term benefits for severe injuries.
    • Malinger: To falsely claim an injury to get more benefits than warranted.
    • Maximum medical improvement: When an injured worker’s healing process is finished.
    • Medicaid: A state and federally funded health care program for eligible residents.
    • Medical fee dispute resolution: A DWC process for resolving disagreements on healthcare costs for treating work-related injuries by an employee.
    • Medical necessity: If medical services are needed to diagnose or treat an injury, illness, condition, or disease in accordance to medical standards/practice.
    • Medically necessary: A service that will affect the patient's healthcare condition negatively if not performed, determined by a medical or healthcare professional.

    Continued

    • Misrepresentation: Providing inaccurate information regarding terms or benefits of a policy or regarding a worker's injury.
    • Multiple employment: An employee having multiple jobs at the time of injury.
    • National Association of Insurance Commissioners (NAIC): An organization regulating insurance; providing analyses & developing model laws for state legislators.
    • National Council on Compensation Insurance (NCCI): An organization, operating as a rating organization, that provides statistics on workers' compensation, develops policy forms and rates, and makes filings for its members to the states.
    • National Provider Identifier (NPI): A unique identifier for healthcare providers which is used on all forms; required by Medicaid and other services.
    • Network (in workers' compensation): Physicians who contract with an insurance carrier to treat injured workers of an employer in a specific area.
    • Non-network (in workers' compensation): Medical services given outside of the contracted healthcare provider network of the insurer.
    • Non-subscriber: An employer who does not provide workers' compensation coverage for their employees.
    • Notice of denial: Notification that insurance carriers send when benefits are not going to be provided.

    Continued

    • Notice of continuing investigation: Notification for insurance carriers when further information is needed regarding a claim to determine compensability; sent to the injured employee & DWC.
    • Notice of network requirements: Contains information regarding the requirements of an employer who's involved in a network, for injured employees.
    • Occupational disease: Illness resulting from prolonged exposure to work conditions.
    • Occupational hazard: Condition that increases the risk of injury or illness at work.
    • Office of Injured Employee Counsel (OIEC): Agency apart from DWC, which assists workers' with disputes concerning workers' compensation.
    • OIEC ombudsman: Provides support to injured employees who have disputes about workers' compensation, without having an attorney.
    • Official Disability Guidelines: Health care providers use this as a database to decide how to best treat an injured worker and when they can safely return to work.
    • Over the counter drugs: Medications available without a prescription.
    • Out-of-network: Health services provided by a healthcare provider who does not have a contract with the insurance carrier.
    • Parent company: The senior company within a group of insurers or other businesses.

    Continued

    • Peer review: Review of another healthcare professional's performance on a medical treatment, performed by someone with similar or equal training.
    • Performance based oversight assessment: The DWC uses this to measure an insurance company's and healthcare provider performance every two years. Poor, average, or high tiers are assigned.
    • Permanent impairment: Damage to an injured employee from a work-related injury that causes a lasting affect.
    • Pertinent information: Important details that are needed to resolve disputes, such as witness accounts, police reports, and medical records.
    • Plain language: Language understandable on first reading and understanding.
    • Policy: The contract between insurer and policyholder outlining the claims payable by the insurer.
    • Political subdivision: Local government bodies like counties, cities, districts, and housing authorities who offer work compensation coverage.
    • Preauthorization: Insurance approval of medical treatment before it is given.
    • Precertification authorization: The process for an insurer to determine the appropriateness and amount of medical procedures and treatment and rates, and to inform the insured employee as well as their caregiving personnel(e.g,doctor).
    • Pre-existing condition: Health concern present prior to a work-related injury.
    • Premium: Cost of insurance protection over a set period of time.

    Continued

    • Quality improvement: Measures and corrects deficiencies/errors impacting an insurance carrier's procedures and processes or health care network
    • Reconsideration: Request from an injured employee or healthcare provider to review the denial of medical services or income payments.
    • Referrals (in-network): A request to another healthcare provider for a specialist who is part of the insurance carrier’s network.
    • Referrals (out-of-network): A request to a specialist when the requested service is not in the insurance carrier’s network.
    • Remand: When a DWC Appeals Panel sends a case back to a contested case hearing for additional action.
    • Representative: A person, such as an attorney, who helps an injured employee, beneficiary or insurance carrier concerning benefits payments.
    • Required medical exam: A medical examination required by the DWC for an injured employee when there is concern regarding appropriate or needed care or diagnosis when there is a disagreement on a medical diagnosis.
    • Retrospective review: Review to determine if medical services given were appropriate and necessary after the services are finished.
    • Rules: DWC's stated laws and policies, generally published in the Texas Administrative Code.
    • Seasonal employee: Worker who has employment to fulfill temporary needs of the employer.
    • Secure File Transfer Protocol (SFTP): A secure protocol for sending documents electronically to DWC.

    Continued

    • Self-insured governmental entity: State, county, and local entities that self-insure workers' compensation coverage for employees.
    • Self-funded/self-insured benefit plans: Alternative plan to worker's compensation.
    • Showing good cause: Providing a valid reason for taking or not taking an action.
    • Small group employer: A person or entity employing 2-50 eligible employees in a calendar year.
    • Solvency: Having sufficient funds to conduct the insurance business and cover liabilities.
    • Statewide average weekly wage: The average weekly wages of Texas employees for a specified time period; calculated by the Texas Workforce Commission.
    • Statement: A written, spoken, or recorded fact.
    • Statutory: Required by a law or statute, such as Texas Labor Code.
    • Statutory maximum medical improvement: The date when an injured employee is deemed medically improved according to the time limits of the laws.
    • Subscriber: The employer who provides workers' compensation benefits for their employees.
    • Subrogation: When an insurance carrier, after paying a claim, takes over the right to pursue payments for benefits from another party.

    Continued

    • Subsequent Injury Fund: Fund administered by DWC to support employees with pre-existing conditions and new injuries.
    • Supplemental income benefits (SIBs): Additional income payments after the impairment income benefits stop, if a specific impairment rating is met.
    • Temporary income benefits (TIBs): Temporary financial payment assistance for loss of wages caused by a work-related injury or illness lasting longer than 7 days.
    • Third-party administrator: Company that processes insurance premiums or claims for an insurance carrier.
    • Treating doctor: Healthcare provider who provides primary care for an injured employee.
    • Unjustified complaint: Concern about a violation of policies or standards that are not valid.
    • Underwriter: Evaluates risks and sets rates for an insurance carrier.
    • Underwriting: Process of evaluating and classifying insurance risks.
    • Utilization review: Process of monitoring quality and appropriateness of healthcare for workers' compensation.
    • Utilization review agent (URA): An individual or organization who reviews healthcare services appropriateness and necessity.
    • Utilization management: Processes used to determine whether insurance-covered healthcare services are necessary.
    • Wage: Salary and other payments received as compensation for services.

    Continued

    • Wage statement: Employee's work-related earnings for the past 13 weeks before being injured, used in determining benefit amounts.
    • Workers' compensation: Insurance program for providing income and medical benefits, after a work-related illness or injury; not always required by employers.

    Addendum #2

    • Link to TX's WC Administrator: [https://www.tdi.texas.gov/wc/index.html]

    Addendum #3

    • Link to TX's annual reports: [https://www.tdi.texas.gov/reports/documents/2022-tdi-annual-report.pdf], [https://www.tdi.texas.gov/reports/documents/biennial-report.pdf]
    • BONUS 1: [https://www.tdi.texas.gov/reports/wcreg/index.html#wcreports (all reports)]
    • BONUS 2: [https://wwwapps.tdi.state.tx.us/inter/perlroot/sasweb9/cgi-bin/broker.exe?service=wcExt&program=progext.hsdata3.sas] (to look up claims by geographic area)

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    Description

    Test your knowledge on essential aspects of workers' compensation, including healthcare providers, occupational diseases, and roles of various organizations. This quiz covers fundamental concepts that are crucial for understanding the workers' compensation system.

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