AIF Praises House on Advancing Workers' Compensation Reform

Associated Industries of Florida released the following statement on the House Economic Affairs Committees approval of HB 511, which would limit the amount doctors can charge their workers' comp patients for dispensing prescription drugs from their office:

"Tallahassee, Fla. House Bill 511, sponsored by Rep. Matt Hudson (R-Naples), today passed the House Economic Affairs Committee, its third and last committee of reference, and is ready to be taken up on the House floor. HB 511 focuses on correcting a loophole in the workers compensation system that allows physicians to dispense repackaged drugs and charge employers exorbitant prices that greatly exceed the statutory reimbursement for the same pharmaceuticals dispensed by pharmacies. The existing loophole allows repackaged or relabeled prescription drugs to be dispensed at rates up to 679 percent more than what a pharmacy would charge.

"The Workers Compensation Coalition and its more than 60 members have made the drug repackaging issue one of their top priorities for the 2012 legislative session."

Tamela Perdue, general counsel for Associated Industries of Florida, said, Our issue is, and always has been, to ensure that employers are not charged excessive and unnecessary amounts for prescription drugs that should be kept at the statutory fee schedule at every point of distribution.

We believe that the right to dispense medication should come with the inherent responsibility to follow the correct and approved costs for those medications, and not turn this practice into a profit center by overcharging employers.

We are encouraged by the momentum the House bill has seen so far in the process, said Perdue. And with the added commitment of Insurance Commissioner McCarty to grant a rate reduction of at least 2.5 percent if this proposal is passed out of the Legislature and signed into law, we believe we are that much closer to closing this loophole and providing some much needed relief to Florida businesses.