Employers are required to purchase workers' compensation insurance coverage to ensure employees have access to medical care and other necessary resources to help them return to work. However, the recent Supreme Court decisions and subsequent rate increase have created tremendous uncertainty about rising workers' compensation costs.
Hospitals, as both large employers and health care providers, face a unique challenge. As employers, hospitals will absorb the impact of workers' compensation rate increases like any other Florida business. And, as providers, the uncompensated cost to provide care will increase if hospital reimbursement rates are reduced.
Cutting provider rates, which are already less than the cost of care, is not a sustainable solution to address the problem of substantial increases in attorneys' fees. Continued reductions to provider reimbursement in the workers' compensation system will only shift the cost of caring for injured workers to those who have insurance.
For more information, contact FHA Vice President of Government Affairs Crystal Stickle.