The Travis County District Attorney’s Office is restructuring its workers’ compensation fraud unit and implementing new safeguards against potential abuse and conflicts of interest after a highly critical series published by the Texas Tribune and the Austin American-Statesman. The reports raised questions about the nature of the relationship between Texas Mutual and the DA’s office, where a contract in which Texas Mutual paid more than $4.1 million since 2001 in an exclusive funding deal to prosecute the company’s fraud cases inspired suspicion. Under the terms of a new contract, which will take effect on January 1st and expire no later than September 2017, Texas Mutual will keep reimbursing the government prosecutors for their expenses, but the company will lose its exclusive deal to have its cases pursued by the fraud unit. Any workers’ compensation insurance provider with a fraud complaint in Travis County can have its case referred to the unit starting next year.
Read more from the Texas Tribune here.