NCCI Poised to Submit Workers’ Compensation Rate Reduction Filing in Florida
At the request of Florida Insurance Commissioner Kevin McCarty, the National Council on Compensation Insurance (NCCI) is preparing to file for a workers’ compensation rate reduction of 0.7 percent to reflect legislation passed during the 2013 session.
NCCI estimates that the provisions contained in SB 662 will result in an impact of -0.7 percent on overall workers’ compensation costs in Florida. SB 662 has not yet been signed by Gov. Rick Scott, although it passed handily in the Legislature and the governor is expected to sign the legislation soon.
In its analysis of SB 662, NCCI notes that the bill makes significant changes to reimbursements for some prescription medications that are currently reimbursed at negotiated or contracted amounts in the workers’ compensation system, including:
Repackaged or relabeled prescription medications when dispensed by a physician shall be reimbursed at 112.5 percent of the Average Wholesale Price (AWP) set by the original manufacturer of the underlying drug plus an $8.00 dispensing fee.
All pharmaceuticals and pharmaceutical services shall be reimbursed at the applicable fee schedule amounts, as per above, except where an employer or a carrier, or a service company, third party administrator, or any party acting directly on behalf of the employer or carrier, directly contracts with the provider seeking reimbursement for a lower amount. Currently, if employers or carriers have already contracted for pharmaceutical services and the employee elects to obtain such services through a medical provider who is not a party to the contract, the employer or carrier may still reimburse that medical provider based on contract rates as long as the contracted provider is reasonably accessible to the employee.
Requires dispensing physician not to be in possession of prescription medication unless payment has been made by the physician to the supplying manufacturer, wholesaler, distributer or drug repackager. Such payment shall be made within 60 days of the dispensing physician taking possession of that medication.
The rate filing will be submitted to the Office of Insurance Regulation in early June, following the governor’s expected approval of SB 662. The filing will propose an effective date of July 1, 2013 (the effective date of the bill) and also will also propose that the rate reduction apply to both new and renewal policies.
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