Workers’ Comp


Workers’ Comp

Fair’s 2017 Workers’ Compensation Reform Initiatives

Any public policy that effectively blocks any citizen from access to the courts is bad public policy. The workers’ compensation issues we face in Florida are not caused by attorneys. They are caused by a lack of competition on rates and a systematic erosion in the quality of care. FAIR is advocating for pragmatic and balanced reforms of Florida’s workers’ compensation structure by doing the following:

  • Adopting the Loss Cost Rating System within Florida’s workers’ compensation system. In other lines of insurance, individual insurance companies file their rates with the Office of Insurance Regulation (OIR) based primarily on their own loss experience. However, in the workers’ compensation scenario in Florida, only the National Committee on Compensation Insurance (NCCI) is authorized to capture that data, and it files those rates on behalf of ALL companies offering workers’ compensation coverage.
    • FAIR proposes that the OIR would award contracts to data providers that allow these providers to use multiple public data sources to compile their own individual rate filings.
    • The resulting robust competition would also lead to greater choice for business policyholders like you, and in turn, better quality care for injured workers – as it should.
  • Reducing non-value added cost drivers. According to the OIR’s 2016 Workers’ Compensation Annual Report, Florida has a higher portion of medical cost distributions for drugs than the national average. FAIR agrees with the OIR that legislative solutions need to be explored to bring this cost driver down and make workers’ compensation more affordable for all stakeholders.

FAIR is also investigating the value of the following reforms that could reduce drug costs:

  • Restrictions on physician dispensing
  • Lowering the reimbursement rate
  • Lowering the dispensing fee
  • Introducing a drug formulary
  • Strengthening the prescription drug monitoring program

Learn more about FAIR’s rationale for workers’ compensation reform in this op ed.

Please consider joining FAIR as a member, or making a tax-deductible donation to the FAIR Foundation, and becoming part of a critical movement that works to safeguard consumers.

@ 2018 Florida Association for Insurance Reform