Over the past few years, the United States workers' compensation industry has been the subject of much contention. Poor underwriting results driven, at least in part, by escalating claim costs have highlighted the need for reform in several states. At the same time, others have been pressing for enhancements to what they view as inadequate benefit levels for injured workers in some of these same states.

The state of Florida's workers' compensation system is an example. This system has experienced a tumultuous history for more than 20 years. During this time, significant legislative activity, both in terms of debated and enacted changes, has persisted.

Many problems continue to plague the Florida workers' compensation industry. Although the interested parties – labor, employers, insurers, physicians, attorneys, and regulators, to name a few — have hotly debated causes and solutions, there are clear signs the system is not operating effectively. For example, although some feel that the statutory workers' compensation benefits are low relative to other states, Florida's average cost per claim is among the highest in the nation. Furthermore, the incidence of Florida claims being compensated with permanent total benefits is more than three times the national incidence rate.