State law prevails in disputes between insurers and an air ambulance service over reimbursements under the Texas workers’ compensation system, the state’s highest court recently ruled. In Texas Mutual Insurance Co., et al, v. PHI Air Medical Inc., the Texas Supreme Court held that the Texas Workers’ Compensation Act (TWCA) and Division of Workers’ Compensation Rules, which require reasonable reimbursement to privately owned air ambulance services, are not preempted by federal law.
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