The purpose of this bulletin is to inform workers' compensation system participants of the annual change to the Medical Fee Guideline conversion factors as established in TAC §134.203. As directed by Texas Labor Code §413.011(a), fee guidelines adopted by the Texas Department of Insurance, Division of Workers' Compensation (TDI-DWC) for non-network services and approved out-of-network services are based on the most current reimbursement methodologies, models, and values or weights used by the Federal Centers for Medicare and Medicaid Services (CMS).
To provide predictability and reflect changes in medical service delivery costs to system participants, TDI-DWC established a conversion factor and an annual update as a part of 28 TAC §134.203. The annual update is based on the Medicare Economic Index (MEI), which is a weighted average of price changes for goods and services used to deliver physician services. The MEI for 2014 reflects an increase of 0.8 percent. The following CMS link provides further detail regarding the MEI: http://www.gpo.gov/fdsys/pkg/FR-2013-12-10/pdf/2013-28696.pdf. See Table 44, page 74398 for specific information on the 2014 MEI.
For services provided in calendar year 2014, the new Medical Fee Guideline conversion factors in 28 TAC §134.203(c) are $55.75 and $69.98. The conversion factor of $55.75 applies to service categories of Evaluation and Management, General Medicine, Physical Medicine and Rehabilitation, Radiology, Pathology, Anesthesia, and Surgery when performed in an office setting. The conversion factor of $69.98 applies to Surgery when performed in a facility setting.
If there are any questions about the information in this bulletin, call the toll-free Comp Connection for Health Care Providers at 800-372-7713 or in the Austin area dial 512-804-4000.
Rod Bordelon
Commissioner of Workers' Compensation