Florida Insurance Consumer Advocate Hosts Meeting On Workers’ Compensation Advisory Board Creation

On December 3, 2009, Florida Insurance Consumer Advocate Sean Shaw convened and facilitated a discussion involving interested parties on the potential creation of an advisory board to help improve the State’s workers’ compensation process.  To view the meeting agenda, click here.

Representatives from various workers’ compensation-related industries were present at the meeting, including carriers, attorneys, judges and medical providers.

The primary purpose of the meeting was to determine whether an advisory board would benefit the Florida workers’ compensation process.  Some discussion took place regarding specific challenges to accomplishing this goal.  

It was not universally agreed by those in attendance that an advisory board would be beneficial.  National Council on Compensation Insurance State Relations Executive Lori Lovgren noted that as few as two of the workers’ compensation advisory boards from the 12 states that have them are considered to be effective. 

Representatives from rehabilitation companies and claimant’s counsel expressed the most interest in creating an advisory board.  Among other concerns, they opined that the current system is not working and injured workers are not returning to work in a timely manner. 

Other speakers noted that an oversight board authorized by the 1993 Florida Legislature was ineffective, partly because a supermajority vote was required for approval of recommendations.  There also was discussion about the effectiveness of the 2003 reforms that have reduced insurance rates and improved the return-to-work rate.  It was suggested by some that any recommendations to change the law should be “tweaks,” rather complete overhauls.

Three suggestions were discussed regarding the possible formation of an advisory board:

• The board could act as an as-needed advisor to the Florida Insurance Consumer Advocate on workers’ compensation issues arising from the governmental process, or as determined by the Consumer Advocate.
• The board could engage in open, regular dialogue on workers’ compensation issues.
• The board could act as a formal, legislatively authorized body with governing documents and a mission statement to advance policies intended to improve the workers’ compensation process.

Close monitoring and participation in any ensuing implementation of such an advisory board will be important because of the specific issues identified by speakers at the hearing as being appropriate to address through legislative or systemic reforms.

Several claimant and employee representatives raised issues related to:

• Perceived delays in the health care delivery process;
• Advancement to an “outcome-measured” medical management system;
• Restoration of further rights for consumer choice of medical providers;
• Enhancement of indemnity benefits;
• Creation of a middle tier indemnity benefit; and
• Coverage issues for certain professional employer organizations.

Some employee representatives asserted that the system is “decimated.”  While this was disputed by others, it was apparent that there is a sentiment among some that a mechanism should be provided to effectuate changes in the current legislative and regulatory workers’ compensation model.

Consumer Advocate Shaw said that his office would consider the discussion and contact the interested stakeholders for the resulting course of action. 

Should you have any questions or comments, please contact Colodny Fass.

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