House Bill 424

Chair's Name: Mike Coan

Committee: Industrial Relations

House Sponsor: Mike Coan

HB 424 contains the annual recommendations of the State Board of Workers� Compensation Advisory Council�s Legislative Committee.

This bill received a Do Pass recommendation from the Industrial Relations Committee and comes back to the House Floor under the Open Rule. 

Chairman Coan's opinion of this legislation:

SUMMARY OF LEGISLATION:

1)       Claim dismissed after 5 years if no hearing has been held and no benefits have been paid

2)       Puts pharmaceuticals on fee schedule (board already doing this)

3)       Increases time to appoint a rehab specialist from 15 to 20 days.

4)       Increases benefits (wages) on floor (min $45-50) and ceiling (max $450-500) and temporary disability ($300-334)

WHAT PROBLEM/OPPORTUNITY DOES THIS LEGISLATION ADDRESS?

-Clears off books claims that aren�t being pursued

-Cuts costs of prescription drugs (We were paying 120% of A.W.P., state health pays 86% of AWP, we were cutting them back to 100% AWP (average wholesale price)

-Self Explanatory

-Keeps us online and away from indexing that would cost more

WHAT IS THE DRIVING FORCE BEHIND THIS LEGISLATION?

The Workers Compensation hammered out these compromises to address problem areas.

THIS LEGISLATION:

• Strengthens the Traditional Family Structure

Helps injured workers with increase in benefits.  Helps cut costs for business and insurance with prescriptions on fee schedule.

• Increases Personal Responsibility:

Lets injured workers know that they need to more on these claims in a timely manner, or they will lose their claim (5 years)

Senate Changes:

The Senate made changes which included opening up worker�s comp and private pay records. Representative Coan offered an amendment to strike all the Senate's changes with the exception of the alligator farm exemptions. The House agreed to the Senate as amended by the House.