For Immediate Release Monday, March 18, 2013 Contact: Sarah Bascom, sarah@[Link], 850.294.6636 Celina Parker, celina@bascomllc.
com, 850.443.9965
Coalition Urges Florida Legislature to Support Proposal to Close Loophole in Workers Compensation System
Legislation to Address Drug Repackaging Loophole to be Heard in First Committees of Reference Tallahassee, Fla. The Workers Compensation Coalition, on behalf of its more than 60 members, today urges members of the House Health Quality Subcommittee and the Senate Banking and Insurance Committee to support House Bill 605, sponsored by Representative Matt Hudson (R-Naples), and Senate Bill 662, sponsored by Senator Alan Hays (R-Umatilla), to maintain the necessary balance for Floridas workers compensation system to continue to see improvement and lower rates. The proposed legislation focuses on closing a loophole in Floridas workers compensation system that currently allows physicians to dispense repackaged drugs and charge employers exorbitant prices that greatly exceed the statutory reimbursement for the same pharmaceuticals dispensed by pharmacies. Addressing the drug repackaging loophole in todays workers compensation system is one of our coalitions priorities this session, said Tom Feeney, president and CEO of Associated Industries of Florida (AIF). This is a longstanding issue that we have unanimously and vehemently supported in years past. Floridas workers compensation system has taken strides in its effort to reduce fraud and frivolous litigation. This proposal is critical to ensure that workers compensation coverage is available and affordable to all Florida businesses and employees. Florida law expressly provides that the intent of the workers compensation system is to assure the quick and efficient delivery of disability and medical benefits to an injured worker and to facilitate the workers return to gainful reemployment at a reasonable cost to the employer. Unfortunately, with the loophole still in place, this intention is being undermined and ignored by physicians who dispense repackaged drugs that exponentially exceed the statutory reimbursement for pharmaceuticals. In January 2013, the Office of Insurance Regulation (OIR) published its 2012 Workers Compensation Annual Report, stating that workers compensation premiums have cumulatively decreased by 56 percent since the legislature enacted reforms to the system in 2003. However, the OIR cautioned Florida businesses to not ignore the rate impact of medical cost drivers associated with physician drug repackaging, among others. This is an unfair practice that is holding employers responsible for markups that are, in the end, hiking up their workers compensation premiums for no good reason, said Tamela Perdue, general counsel for AIF. Its important to clarify that nothing in these proposals limits patient choice on where they want to receive their medications. These proposals actually clarify that the maximum cost to be charged for a particular medication will be the same across the board, no matter where the patient chooses to purchase it.
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WORKERS COMPENSATION COALITION PAGE 2 The workers compensation coalition urges the Florida Legislature to take point on addressing this loophole this year, so that we may continue to reduce the cost of doing business in Florida, said Feeney. ### Associated Industries of Florida recognized the urgent need for significant reform to Floridas workers compensation system and formed the Workers Compensation Coalition of Business and Insurance Industry to educate lawmakers about the nature of the system, its potential for failure or success, and to develop viable solutions that would reduce fraud, lower rates and create a healthy workers compensation market. The Workers Compensation Coalition, and its more than 60 members, has spearheaded the most recent workers compensation reforms of 2003, which have resulted in remarkable savings for employers, decreased time away from work for employees, and improved enforcement of the laws governing the workers compensation system.