12:15 AM CST on Friday, January 13, 2006

By BRETT SHIPP / WFAA-TV

Around one year ago, state officials, due in part to a News 8 Investigation, pledged to overhaul the workers compensation system in Texas.

But so far, frustrated injured workers and their doctors had seen few changes and had little reason for optimism, until Thursday.

On Sept. 1of 2005, House Bill 7 abolished the Texas Workers' Compensation Commission and a new work compensation system operated by the State Insurance Department was put in its place.

But four months later, many state lawmakers became frustrated and some demanded answers Thursday.

For more than one year, News 8 documented case after case of legitimately injured workers being denied access to surgeries, therapies and medicine by work compensation insurance carriers.

Not only were workers suffering, but doctors who gave away care just to help their patients also felt the effects.

Charles Osborne of Waxahachie was among those doctors and criticized the system on a News 8 report because he was stripped of his ability to treat work compensation patients.

"And the only reason I'm here today is I have nothing to lose," Osborne said.

Along with others fighting the new program, Osborne went to Austin to plead with lawmakers to restore his credentials and integrity to the system.

Business and Industry Chair Helen Giddings was outraged at the apparent retribution.

"We are not going to tolerate that, not here in this committee, not in the state of Texas," Giddings said. "We are going to have to restore confidence in our ability as regulators."

And newly appointed Workers Compensation Commissioner Albert Betts not only promised reforms, he acted on it by introducing a special counsel hired specifically to help workers being unfairly denied their medicines, surgeries and benefits.

"I'm gonna shine the light on those processes and we are going to expose those processes," said Norman Darwin, the newly hired special counsel.

"Norman, I mean to tell you, I love what you are saying," said State Rep. Bill Zedler, (R) Arlington.

Figures just obtained by News 8 showed that while premiums collected from employers pretty much stay the same at $2.5 billion, the payout of claims dropped each year.

In three years time, the insurance company profit gap continued to grow from $1 billion dollars in 2002 to $1.5 billion in 2004.

The numbers appeared to conflict with assertions by the insurance industry.

When News 8 showed the figures to an insurance industry representative, he said perhaps it's time for premium rates to start dropping.

E-mail bshipp@wfaa.com