Florida Repeals Comp Managed Care Requirement

June 5, 2001
Florida has repealed the mandate that required employers to use managed care for all workers' compensation claims.

It was the first and only state to require managed care for workers'' compensation claims for all employers, however Florida has now repealed the mandate, making managed care strictly a voluntary program.

The state decided to repeal the mandate last month after a Workers'' Compensation Research Institute study conducted late last year found that the administrative costs associated with medical cost containment are higher in Florida than in seven other high-volume states. At the same time, Florida''s comp costs were the third highest, at $4,709 per claim, in the nation.

In addition, litigation and its associated costs were on the rise in Florida due to inconsistencies in how the managed care programs were administered. Officials speculated that some of the problem can be attributed to the fact that provider network inadequacies in rural areas resulted in treatment delays while an out-of-network provider was selected. Likewise, required grievance procedures did not have any consistency standards.

Florida passed its managed care legislation in 1993 making the element a requirement. Compliance was not required until 1997, however many employers chose to implement the program early seeing as they received a 10 percent premium discount for complying.

by Melissa Martin

About the Author

EHS Today Staff

EHS Today's editorial staff includes:

Dave Blanchard, Editor-in-Chief: During his career Dave has led the editorial management of many of Endeavor Business Media's best-known brands, including IndustryWeekEHS Today, Material Handling & LogisticsLogistics Today, Supply Chain Technology News, and Business Finance. In addition, he serves as senior content director of the annual Safety Leadership Conference. With over 30 years of B2B media experience, Dave literally wrote the book on supply chain management, Supply Chain Management Best Practices (John Wiley & Sons, 2021), which has been translated into several languages and is currently in its third edition. He is a frequent speaker and moderator at major trade shows and conferences, and has won numerous awards for writing and editing. He is a voting member of the jury of the Logistics Hall of Fame, and is a graduate of Northern Illinois University.

Adrienne Selko, Senior Editor: In addition to her roles with EHS Today and the Safety Leadership Conference, Adrienne is also a senior editor at IndustryWeek and has written about many topics, with her current focus on workforce development strategies. She is also a senior editor at Material Handling & Logistics. Previously she was in corporate communications at a medical manufacturing company as well as a large regional bank. She is the author of Do I Have to Wear Garlic Around My Neck?, which made the Cleveland Plain Dealer's best sellers list.

Nicole Stempak, Managing Editor:  Nicole Stempak is managing editor of EHS Today and conference content manager of the Safety Leadership Conference.

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