1. Effective June 1, 2012 (for requests received on or after June 1, 2012) 1 The information contained in this presentation is not a substitute for the Texas Labor Code and/or TDI-DWC rules.

2. Medical Fee Dispute Resolution (MFDR) Fee Dispute Resolution Request General Process Important Changes Effective June 1, 2012 Contact Information Questions & Answers 2

3. Basic information and statutory/rule authority for Medical Fee Dispute Resolution 3

4. A disagreement over the amount of payment due for health care determined to be medically necessary and appropriate for treatment of a compensable injury. The TDI-DWCs Medical Fee Dispute Resolution(MFDR) section resolves medical fee disputes 4

5. Texas Labor Code §413.031 (c) authorizes MFDR to adjudicate the payment given the relevant statutory provisions and commissioner rules 28 Texas Administrative Code §133.307 (hereto after referred to as Rule §133.307) sets out the eligibility, filing requirements and general process for adjudication of a medical fee dispute 5

6. Information to help identify the type of dispute and whether MFDR is the appropriate process 6

7. The disputes discussed in this presentation relate only to health care that has already been provided, billed, and reduced or denied by the workers compensation insurance carrier Denial of services may result in the following types of disputes: Compensability, Extent of Injury & Liability Disputes Medical Necessity Disputes Medical Fee Disputes Each dispute type is resolved by a different TDI-DWC section/program area with independent processes 7

8. Carefully read the explanation of benefits (EOB) and other correspondence issued by the workers compensation insurance carrier Match the reduction or denial code to a dispute type Be aware that you may be required to take certain actions before filing a dispute (such as appeal/reconsideration) File your dispute in accordance with the appropriate process 8

9. EOB Code Examples (not an exhaustive list) Dispute TypeResolved By Link to Resources and Requirements Reduced or denied due to compensability, extent of injury, or liability Compensability, Extent of Injury or Liability TDI-DWC HEARINGS SECTION http://www.tdi.texas.gov/wc/i dr/brcinfo.html Services are not medically necessary; services reduced or denied due to Peer Review Medical Necessity Dispute Managed Care Quality Assurance (MCQA) http://www.tdi.texas.gov/hmo /iro_requests.html Services reduced according to Texas fee guidelines; exceed authorization or authorization required Medical Fee Dispute Medical Fee Dispute Resolution (MFDR) http://www.tdi.texas.gov/wc/ mfdr/index.html 9

10. Deadline Must be filed not later than one year after the date(s) of service in dispute, with few exceptions Request & Instructions Form DWC-060, Medical Fee Dispute Resolution Request Required Documentation Varies by requestor type Requestor Types Health Care Providers Injured Employees (including first responders) Pharmacy Processing Agents (PPA) Subclaimants 10

11. Former DWC-60New DWC-60 Required for use by requestors &respondents No check box to identify subclaimant, PPA or first responder Extensive form & table of disputed services Did not include documentation requirements by requestor type Required for use by all appropriate requestors Check box added for subclaimant, PPA and first responder Minimal form and table for ease of use Includes documentation requirements by requestor type 11

12. 12 New Form DWC-060

13. 13 New Form DWC-060

14. The general adjudication process in MFDR 14

15. 15 General Process

16. Dismissal MFDR may dismiss a dispute request for reasons stated by rule Withdrawal The requestor may withdraw a dispute at any point after docketing and before a decision is rendered Decision MFDR dispute resolution officer may issue a decision with no order, or a decision with an order to pay 16

17. 17 ScenariosDecisionDismissalWithdrawal Notice to the RespondentYesNoYes May be appealed by the partiesYesNo Posted to the web (redacted)YesNo Parties may request amendments/clerical corrections YesNo Re-submit as a new fee disputeNoYes

18. Changes effective June 1, 2012 18

19. Former Rule §133.307 Effective for disputes received before June 1, 2012 New Rule §133.307 Effective for disputes received on or after June 1, 2012 Required info & docs contained in the DWC Form-060 instructions Language specific to subclaimants, first responder absent Dismissals are appealable Decision appeals heard at the TDI-DWC or at SOAH (by dollar amount) No cost to parties for appeal of dispute decisions to SOAH Info & docs are required by rule (DWC Form-060 updated) Language added for subclaimant, first responder Dismissals are not appealable Decision appeals go through a BRC, and then may be appealed to SOAH or arbitration The non-prevailing party at a SOAH is billed for the cost of the proceeding 19

20. MFDR may dismiss a fee dispute request received on or after June 1, 2012 for reasons stated in new Rule §133.307 The reasons for dismissal are communicated in writing to the requestor The requestor may correct the reasons for dismissal and file a new dispute A corrected request is considered a new request subject to all the requirements of Rule §133.307, including timeliness A dismissal may not be appealed 20

21. Examples of disputes that may be dismissed include, but are not limited to: Requests where the services in dispute have not gone through appeal/reconsideration under 28 Texas Administrative Code § 133.250 Requests containing unresolved issues of compensability, extent or liability Requests containing unresolved issues of medical necessity Requests that do not contain the documentation required by Rule §133.307 21

22. Either party has the right to seek review (appeal) of a decision issued by the TDI-DWCs MFDR section A party seeking review of an MFDR decision must request a Benefit Review Conference (BRC) no later than 20 days from the date the MFDR decision is received by the party If the medical fee dispute remains unresolved after the conclusion of a BRC, the parties may request arbitration or a hearing at the State Office of Administrative Hearings(SOAH) no later than 20 days from the conclusion of the BRC If the dispute remains unresolved at the conclusion of the SOAH hearing, the parties may request judicial review not later than the 45 th day after the date on which SOAH mailed the party the notification of the decision 22

23. 23 The date the dispute is received in the MFDR section is what determines whether the former rule, or the new rule is in effect for the adjudication of the dispute & the appeal of a dispute decision. Date received in MFDR section Applicable Rule Date Decision Received by Parties Date Party Submits Appeal Request AppealLoser pays SOAH costs May 1, 2008Former § 133.307 Jun 1, 2012Jun 20, 2012CCH at DWC or SOAH (former rule) No Mar 7, 2010Former § 133.307 Jun 30, 2012Jul 3, 2012CCH at DWC or SOAH (former rule) No May 31, 2012 Former § 133.307 Jul 26, 2012Aug 15, 2012CCH at DWC or SOAH (former rule) No Jun 1, 2012New § 133.307 Jul 26, 2012Aug 15, 2012BRC, then SOAH (new rule) Yes Jun 15, 2012New § 133.307 Jul 26, 2012Aug 3, 2012BRC, then SOAH (new rule) Yes

24. This provision was enacted under House Bill 2605 Except as otherwise provided by Texas Labor Code §413.0312, the non-prevailing party shall reimburse the TDI-DWC for the costs of services provided by SOAH If the injured employee is the non-prevailing party, the insurance carrier shall reimburse the TDI-DWC for the costs for services provided by SOAH In the event of a dismissal, the party requesting the SOAH hearing is billed for the costs 24

25. Common Inquiries 25

26. Are untimely filed disputes dismissed? 26 A determination that a dispute was not timely filed is an appealable decision.

27. Are requestors notified of the reasons for dismissal? 27 Requestors are notified in writing of the reasons that a dispute is being dismissed.

28. Are there timeframes for the adjudication of disputes? 28 There are no statutory provisions or rule provisions that impose a timeframe.

29. Can a health care provider, subclaimant, or PPA submit a medical fee dispute by fax? 29 Requests by these specific parties must be submitted via mail service or personal delivery.

30. Can an injured employee submit a medical fee dispute by fax? 30 Injured employees are permitted by rule to fax their requests for dispute resolution.

31. Is the loser pay provision applicable to all decisions rendered on or after June 1, 2012? 31 Loser Pay does not apply to decisions rendered for disputes received in the divisions MFDR section prior to June 1, 2012.

32. Is the total cost of a SOAH hearing determined by the TDI-DWC? 32 The total cost of a contested case hearing at SOAH is determined by SOAH.

33. Is the non-prevailing party identified by the TDI-DWC? 33 The cost of the hearing and identity of non-prevailing party is communicated through the SOAH decision.

34. Resources 34

35. 35 General Inquiries (not specific to a dispute)

36. Contact Information Telephone number: (512) 804-4812 Fax number: (512) 804-4811 Address: 7551 Metro Center Drive Suite 100 Austin, TX 78744 E-Mail: MDRInquiry@tdi.texas.gov WEB Page http://www.tdi.texas.gov/wc/mfdr/index.html 36

37. DWC Home Page http://www.tdi.texas.gov/wc/indexwc.html http://www.tdi.texas.gov/wc/indexwc.html History of House Bill 2605/ New 413.0312 http://www.legis.state.tx.us/BillLookup/History.aspx? LegSess=82R&Bill=HB2605 http://www.legis.state.tx.us/BillLookup/History.aspx? LegSess=82R&Bill=HB2605 Texas Labor Code http://www.tdi.texas.gov/wc/act/index.html#act82 http://www.tdi.texas.gov/wc/act/index.html#act82 TDI-DWC Rules http://info.sos.state.tx.us/pls/pub/readtac$ext.View TAC?tac_view=3&ti=28&pt=2 http://info.sos.state.tx.us/pls/pub/readtac$ext.View TAC?tac_view=3&ti=28&pt=2 Contact TDI-DWC http://www.tdi.texas.gov/wc/dwccontacts.html http://www.tdi.texas.gov/wc/dwccontacts.html Training http://www.tdi.texas.gov/wc/events/index.html http://www.tdi.texas.gov/wc/events/index.html 37

38. 38