Florida Senate - 2014 CS for CS for SB 1580 By the Committees on Health Policy; and Banking and Insurance; and Senator Hays 588-04044B-14 20141580c2 1 A bill to be entitled 2 An act relating to the Workers’ Compensation Cost Task 3 Force; amending s. 440.13, F.S.; creating the Workers’ 4 Compensation Cost Task Force; providing for 5 membership; providing duties; requiring the task force 6 to submit a report to the Governor and the Legislature 7 by a specified date; requiring the Office of Insurance 8 Regulation to consult with the Workers’ Compensation 9 Cost Task Force to prepare a report; requiring the 10 report to be delivered to the task force and the 11 Legislature by specified dates; providing an 12 expiration date; providing an effective date. 13 14 Be It Enacted by the Legislature of the State of Florida: 15 16 Section 1. Subsection (17) is added to section 440.13, 17 Florida Statutes, to read: 18 440.13 Medical services and supplies; penalty for 19 violations; limitations.— 20 (17) WORKERS’ COMPENSATION COST TASK FORCE.— 21 (a) The Workers’ Compensation Cost Task Force is created. 22 The Department of Financial Services shall provide 23 administrative and staff support services relating to the 24 functions of the task force. The task force shall organize by 25 July 1, 2014. The task force shall be composed of the following 26 17 members: 27 1. The Chief Financial Officer, or his or her designee, who 28 shall serve as chair of the task force. 29 2. An attorney who practices workers’ compensation law, 30 appointed by the Speaker of the House of Representatives. 31 3. The Insurance Consumer Advocate. 32 4. The Secretary of the Department of Health, or his or her 33 designee. 34 5. The employee member of the three-member panel, created 35 under subsection (12). 36 6. One member who represents a critical access hospital, 37 appointed by the Speaker of the House of Representatives. 38 7. One member who represents a rural hospital, appointed by 39 the President of the Senate. 40 8. Five members appointed by the President of the Senate 41 and five members appointed by the Speaker of the House of 42 Representatives which must each include: 43 a. A member of the Legislature; 44 b. An owner or representative of a hospital system that has 45 over 2,000 beds and provides services to a significant number of 46 workers’ compensation claims; 47 c. An owner or representative of a business that employs 48 more than 500 employees; 49 d. An owner or representative of a business that employs 50 less than 25 employees; and 51 e. A representative from an insurance company that provides 52 workers’ compensation insurance. 53 (b) Members of the task force shall serve without 54 compensation, but are entitled to reimbursement for per diem and 55 travel expenses pursuant to s. 112.061. 56 (c) The purpose of the task force is to analyze workers’ 57 compensation costs. The task force shall review and analyze the 58 recommendations of the Three-Member Panel 2013 Biennial Report 59 in the context of reducing workers’ compensation costs. The task 60 force shall develop a report that includes its findings and 61 recommendations for legislative action regarding a new payment 62 methodology for hospital inpatient and outpatient reimbursements 63 in workers’ compensation cases which will reward efficiency, 64 quality, and outcomes. The task force must address other factors 65 related to workers’ compensation costs, including, but not 66 limited to, the volume of inpatient and outpatient services, the 67 number of accidents and workers compensation claims, fraud, the 68 cost per claim and treatment, and tort costs related to workers’ 69 compensation care. The task force shall submit the report to the 70 Governor, the President of the Senate, and the Speaker of the 71 House of Representatives by January 15, 2015. 72 (d) The Office of Insurance Regulation, in consultation 73 with the Workers’ Compensation Cost Task Force, shall prepare a 74 report analyzing the use of negotiated workers’ compensation 75 premium provisions within retrospective rating plans. The report 76 shall examine the use of such provisions in neighboring and 77 competitive states, specifically as to savings in the actual 78 premium if a retrospective rating deviation is applied compared 79 to the standard workers’ compensation premium, and as to the 80 potential inequity for Florida’s employers due to the lack of 81 such authorization in this state. The report must examine the 82 potential savings to Florida’s employers as a result of 83 implementation of negotiated premiums for employers that have 84 exposure in more than one state and an estimated annual 85 countrywide standard premium of at least $250,000, $500,000, and 86 $750,000. This report shall be delivered to the task force for 87 approval by September 1, 2014, and the approved report shall be 88 delivered to the President of the Senate and the Speaker of the 89 House of Representatives by November 1, 2014. 90 (e) This subsection shall be repealed June 30, 2015. 91 Section 2. This act shall take effect upon becoming a law.