NAII: Fla. Comp Revision Bill Offers Big Savings

By Daniel Hays

NU Online News Service, April 16, 11:59 a.m. EST?A measure to revise the state's workers' compensation law that is working its way through the Florida House, could lead to a double-digit cut in premiums by insurers, according to a trade group.

James S. Taylor, southeastern regional manager for the National Association of Independent Insurers, said he estimated the measure, H.B.1837, could lead to premium reductions as much as 15 percent.

Mr. Taylor said the NAII favors the House proposal over a similar one approved by a Senate committee yesterday, (S.B. 1132), which is "not as good from a cost containment standpoint."

The bill, which the Florida House State Administration Committee approved unanimously on Monday, "in its current form could have a significant impact on the Florida workers' comp market," Mr. Taylor said.

H.B. 1837, has provisions to cut workers' compensation costs by legal activity and making it more difficult to prove compensation for injuries. It is now with the House Appropriations Committee, which should have little problem approving it since it has minor fiscal impact, the NAII executive explained.

Mr. Taylor said Monday's unanimous committee vote in favor of the bill gives it a good chance of passage by the full House where, he said, efforts to amend or block the bill could be expected from the trial lawyers' lobby.

"They obviously are going to work hard against this bill. It does restrict some legal fees," said Mr. Taylor.

Both Gov. Jeb Bush and the leadership of the House and Senate have expressed the view that there is a need for the measure, he said. At this point, Mr. Taylor said, opposition is not expected from medical providers involved with the comp system.

H.B. 1827's main provisions include:

? Limiting the number of corporate officers for which a company can claim workers compensation exemptions.

? Establishing more stringent standards for permanent total disability, which currently is based on the Social Security disability standard.

? Eliminating hourly attorney fees, which business groups said have been used to pay lawyers large amounts of money for pursuing small claims.

? Increasing the death benefit from $100,000 to $150,000, with the funeral benefit rising from $5,000 to $7,500.

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