Money, Politics and Workers' Comp

Thursday, November 18, 2010 | 0

By Joe Paduda
CompPharma and Health Strategy Associates

An interesting confluence of events occurred this week in the Sunshine State, one that will keep employers' costs up while enriching politicians and physician dispensers.

First, the Florida Legislature was going to meet and vote on a measure to override Gov. Charlie Crist's veto of a law that closed a loophole in the state laws that allowed physicians dispensing drugs to workers' comp patients to receive reimbursement much higher than the same drugs dispensed by a retail pharmacy.

Crist's veto shot down a bill that had been passed unanimously by the Florida Senate and House that's right, not a single dissenting vote.

Then, seemingly overnight, the veto override was taken off the table; the new agenda for tomorrow's meeting makes not mention of the WC Rx override.

According to an observer in Tallahassee:

"Senate President-designate Mike Haridopolos and House Speaker-designate Dean Cannon dropped two suddenly contentious bills from their veto override list after objections from Gov.-elect Rick Scott and GOP donors.

The other measure [under consideration for a veto override vote] would have imposed new restrictions on doctors' repackaging of prescriptions and would have lowered workers' comp costs for the state and private companies.

But Automated Healthcare Solutions, a Miramar company headed by two South Florida doctors, supported the veto and spent $1 million on political committees headed by Haridopolos, R-Merritt Island, and Cannon, R-Orlando, this summer." [emphasis added]

(Yes, this is the same AHCS that is suing the author of this blog for defamation and various other sins.)

From another article:

"Automated Healthcare Solutions, a Miramar company headed by a pair of doctors, Paul Zimmerman and Gerald Glass, steered $605,000 to the [Republican] party [emphasis added] after also helping finance some of the primary's fiercest attacks on McCollum.

The doctors, who played a central role in fighting legislation supported by [Florida CFO and gubernatorial candidate Alex] Sink that would have reduced the cost of prescription drugs in workers' compensation cases - a measure vetoed by Crist donated $1 million through companies they lead to political spending committees controlled by incoming legislative leaders Sen. Mike Haridopolos, R-Merritt Island, and Rep. Dean Cannon, R-Winter Park."

Which leads me to wonder, how powerful is the almighty dollar in politics? Is the removal of the comp drug bill coincidental, or is it possible that Haridopolos, an avowed friend of business, is somehow able to see the merits of a business model that has reportedly cost Florida's employers $34 million?

If I didn't have such deep faith in our politicians, I might even think Haridopolos set aside his pro-business theology for a few hundred thousand bucks.

What does this mean for you?

How much money is there in physician dispensing?

Millions. And more millions.

Enough to enable firms interested in and profiting from physician dispensing to contribute hundreds of thousands of dollars to politicians, dollars that may - or may not - affect legislative agendas.

Joe Paduda is co-owner of CompPharma, a consortium of pharmacy benefit managers, and owner of Health Strategy Associates, an employer consulting firm. This column was reprinted with his permission from his blog, http//:www.managedcarematters.com.