Florida turns the tide.

• Author: Moss, Bill
• Position: New workers' compensation reform

Legislators and the governor together rescued a $3 billion workers' comp system that was spinning out of control.

Dubbed by Governor Lawton Chiles as "one of the most important economic development initiatives the state has undertaken," Florida's new workers' compensation reform reduces premiums by 10.6 percent, saving businesses $334 million a year.

Hammered out in a special session called by the governor in November, Florida's new reforms pick up where a major reform bill in 1990 left off. The 1990 legislation reduced wage-loss benefits, but failed to put the brakes on attorney involvement and escalating medical costs. Senator Toni Jennings and Representative Fred Lippman, sponsors of the 1993 legislation, hope that this time the reforms are structural and long-lasting, not superficial and short-lived.

Lawmakers applauded the 10.6 percent reduction.

"I think that's good news, but it's going to do nothing but get better over the next two or three years," says Senator Rick Dantzler. "The dispute resolution stuff we put in place and some of the other reforms are going to realize reductions and then should stabilize. I think the net result is going to be the person who hires a lawyer is the person who really needs one. I think we've ended the reflex action we've seen in claimants hiring attorneys.

"No question about it. It's going to really turn the tide."

Governor Pushed Reform

Like many states, Florida has struggled with workers' compensation rates and a system whose costs were running rampant. Doctors and lawyers profited while employers struggled to pay spiraling premiums, and injured workers ricocheted from courtrooms to doctor's offices and back. Chiles brought lawmakers into special session with the goal of cutting premiums by 20 percent. He proposed doing that by reducing litigation, eliminating doctor-shopping by claimants and insurers, curbing the use of chiropractors, scaling back wage-loss payments, and promoting the rehiring of injured workers.

Chiles traveled the state in a three-month crusade to call attention to the problem and rally support for changes. Support by business was broad, but the reform faced resistance from powerful interests feeding off the system. Insurers, health-care providers and lawyers all have a stake in the no-fault system to treat on-the-job injuries and provide wages during recovery. Although intended to serve employees and employers, Chiles and leading legislators said workers' comp was serving...