Rick Scott's Win in Fla.: Bad News for Workers' Comp

Wednesday, November 10, 2010 | 0

By Joe Paduda
CompPharma, Health Strategy Associates

The next governor of Florida will be Rick Scott. Democratic candidate, and current state Chief Financial Officer Alex Sink just conceded defeat, and her loss bodes ill for Florida's workers' comp insurers and employers.

Recall that Sink was a major supporter of a bill to prevent price-gouging by physicians dispensing drugs to workers' comp claimants, a practice that has added millions to work comp loss costs. Departing Gov. Charlie Crist vetoed the bill after a flurry of last minute lobbying by a variety of interested parties, including my nemesis, Automated Healthcare Solutions.

AHCS and its principals Paul Zimmerman and Gerald Glass donated hundreds of thousands to Crist and his supporters, donations that occurred around the time Crist was considering whether or not to sign the anti-physician dispensing bill. Let's not miss the key issue here; AHCS makes enough profit from billing employers and insurers for physician dispensing to donate over $1.6 million to politicians.

Now news reports indicate that AHCS, Zimmerman, Glass, et al got behind Rick Scott in a major way:

"Automated Healthcare Solutions, a Miramar company headed by a pair of doctors, Paul Zimmerman and Gerald Glass, steered $605,000 to the party 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 Sink that would have reduced the cost of prescription drugs in workers' compensation cases [emphasis added] - 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. The money was used to air TV ads during the primary against Scott."

So, after their initial efforts to help Crist didn't pan out, AHCS threw its financial muscle behind Rick Scott. Who will be the new governor.

And will likely have the opportunity to sign, or veto, a bill to eliminate the loophole that enables physician dispensers to charge much more than retail pharmacies for the same drugs. Insurers and employers in the Sunshine State would likely favor such a bill; According to the Workers' Compensation Research Institute, physician dispensed drugs are the main reason Florida's prescription drug costs were 38% higher than a 16-state average.

But somehow I don't see future Gov. Scott signing a bill bitterly opposed by donors who gave his campaign over $600,000.

Even if it would help reduce employers' workers comp premiums, and improve the business climate in Florida.

What does this mean for you?

Higher workers comp costs in Florida.

(By the way, I finally got an official copy of AHCS' suit against me, my attorneys have filed a response, and I'll provide a more detailed update shortly.)

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