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by frank white
 The Fire Ants Of Workers' Comp
Those of us involved in workers' compensation
sometimes feel a kinship with those hapless homeowners whose lawns are invaded by fire
ants. Kill off one anthill and a few days later another sprouts up. Ignore the mound of
dirt long enough and it grows into an insect condominium.
Two of the latest workers' comp battles were fought in the 1997
Legislative Session. The first involved unfunded liabilities in the Special Disability
Trust Fund; the second concerned the increasing threat of insolvency among some
self-insurance funds and insurance carriers. Rep. R.Z. Safley (R-Clearwater) did yeoman's
work on these issues. Vigilance is needed to ensure that the solutions work, but we have
every reason to believe these two emergencies are on the road to resolution.
Now, however, it's time to attack the latest workers' comp anthill.
This one involves the obstacles to promises made when the Legislature enacted the 1993
reforms. At that time, some criticized the reforms for a certain stinginess toward injured
workers. Many business people, including those of us at Associated Industries of Florida
(AIF), promised that once the costs of the system were under control, attention could turn
to increasing benefits for those who suffer genuinely serious injuries.
Four years later, we still face obstacles to that goal. An alternate
dispute resolution process was implemented in 1994 as a means to resolve issues without
wasteful litigation. Nevertheless, attorney fees continue to spiral ever higher, consuming
precious system dollars that could otherwise go directly to injured workers. The process
has actually served as a vehicle for lawyers to pad their billable hours on claims until
they finally manage to get into litigation.
The attempts to tighten the definition of what constitutes a
catastrophic claim qualifying for life-time benefits have failed miserably. The number of
claims for permanent total disability have increased over the last several years. Florida
now records one of the country's highest incident rates for these claims.
This is not because Florida is unsafe for workers; rather, it's
because every attorney alleges that any claimant with a backache is incapable of ever
holding gainful employment. To support the allegations, psychiatrists render opinions that
these claimants are permanently impaired as a result of depression caused by pain. Do
these psychiatrists really mean that these individuals will be permanently depressed with
no hope of ever recovering psychologically or of becoming productive citizens?
Don't get me wrong. Psychological treatment must be afforded injured
workers when needed. I just have a difficult time accepting the pervasiveness of permanent
psychological impairment.
Business people are working with Rep. Safley to effect savings in
the system, but not necessarily to reduce premium rates for employers. Rather the goal is
to find a way to increase benefits, in terms of both amount and duration, for those
workers suffering a permanent partial impairment who need a longer recovery period before
returning to the work force.
It will be no easy task fending off some of the special interest
groups who may not wish to see those changes made. The challenge is to convince the
Legislature to make a commitment to increasing benefits to those who need them the most
without enriching those who don't.
Frank White is executive vice president & COO of
Associated Industries Insurance Services, Inc., in Boca Raton. He is actively involved in
legislative issues dealing with workers' compensation insurance and serves as chairman of
the Florida Self Insurance Fund Guaranty Association and as vice chairman of the Florida
Workers' Compensation Joint Underwriting Association. He received a BA degree in
mathematics from the University of South Florida. |
