Proposed medical fee schedule changes could boost Florida comp costs 1.9%

Potential updates to Florida’s medical fee schedule for workers compensation health care providers could increase the state’s workers comp system costs by $61 million, or 1.9% annually, the National Council on Compensation Insurance says.

NCCI released an analysis Monday regarding a proposal being considered by the Florida Division of Workers’ Compensation, which would update Florida’s current fee schedule to reflect 2014 Medicare reimbursement rates for physician services and outpatient hospital services. The current manual uses 2008 Medicare rates.

No effective date is noted in the department’s proposal, and Boca Raton, Florida-based NCCI assumed an effective date of July 1, 2015 in its analysis.

NCCI said that the state’s proposal would increase medical costs related to physician payments by 2.6%. That increase would represent a 1.8% increase in overall workers comp costs for Florida, the rating and research agency said.

Additionally, pricing for workers comp-related hospital outpatient services would increase 0.6% under the state workers comp division’s proposal, NCCI said. That increase would represent 0.1% of Florida’s overall workers comp costs.

In a separate analysis released Monday, NCCI said a separate proposal being considered by the Florida workers comp division could decrease state workers comp costs by $3 million, or 0.1% annually. That proposal would cap reimbursements for certain services performed by ambulatory surgical centers.