Workers’ comp reform bill: Can legislation save Florida businesses?

by Boardroom Brief Staff on February 23, 2012

Florida workers’ compensation rates are increasing and most businesses are not prepared for the higher financial burden. The rates are scheduled to increase an average of 8.9 percent in 2012.

With increased pressure from Florida business groups such as Florida Chamber of Commerce and Associated Industries of Florida, Florida legislators are not sitting idle on this issue.

Senator  Alan Hays (R-Umatilla) is sponsoring SB 668, which is designed to lower workers’ comp rates on Florida’s businesses. The bill will reduce rates by 2.5 percent for a savings in the neighborhood of $62 million.

On Wednesday, the Senate Health Regulation Committee approved the legislation by a vote of 7-0. The bill’s next stop is the Senate Budget Committee and finally consideration by the full Senate on the floor. 

The companion bill, HB 511, sponsored by Representative Matt Holder (R-Naples) is now in the Economic Affairs Committee.

The bills will essentially close the drug loophole in the current workers’ compensation system allowing doctors to charge the program high rates for prescription drugs.   

The Florida Medical Association also supports the proposed legislation.