While the 2005-2006 hurricane season necessarily diverted much media attention to homeowners' insurance, the Division of Workers' Compensation (DWC), part of the Department of Financial Services (DFS), quietly racked up some impressive numbers in its past fiscal year.
Its aggressive pursuit of employers who flout the state's workers' compensation laws and regulations has contributed in helping employers save more than $1 billion in workers' compensation premiums during the last several years. The division also has seen a reduction in fraud and ensured coverage for more than 30,000 workers who were previously uninsured.
One of the integral bureaus within the DWC is the Bureau of Compliance (BOC). During the current fiscal year that began July 1, 2005, the bureau has issued more than 2,400 stop-work orders (SWOs) and has levied more than $45.7 million in penalties against non-compliant employers. At this pace, it appears that the BOC will match or exceed its fiscal year 2004-2005 statistics.
The Bureau conducts compliance sweeps, frequently targeting residential and commercial construction job sites, where workers such as roofers, carpenters, and masons are often at the greatest risk of being injured. It is not uncommon for 100 or more SWOs to be issued during a sweep operation.
Getting the Word Out
In addition to addressing compliance issues, the bureau's field offices were an important part of the department's outreach to assist and provide information to citizens who were in the path of the storms that struck Florida last season. The bureau developed a flier, in both English and Spanish, with recovery and relief information and distributed it door-to-door in areas hardest hit by the hurricanes. Staff also provided insurance information to homeowners and contractors at construction industry fairs and produced a radio public service announcement reminding homeowners to employ licensed and insured contractors.
In the wake of the hurricane damage, the division also conducted a campaign to educate out-of-state contractors about Florida's workers' compensation laws and penalties. The campaign also was broadcast to other states and national trade associations to ensure that all parties involved in post-hurricane rebuilding were aware of the requirements of Florida's workers' compensation laws. DWC also launched a radio campaign with a public service announcement focusing on employer fraud and premium evasion.
Another key bureau within the DWC is the Bureau of Monitoring and Audit (BMA). The BMA staff monitors insurer performance by reviewing claim data, investigating and enforcing compensation orders from Judges of Compensation Claims, and reviewing payroll and classification information reported by self-insured employers.
BMA's penalty section monitors timely payment of indemnity benefits and medical bills using the Centralized Performance System (CPS), a web-based reporting system that allows insurers and the division access to information in real time. CPS allowed assessment of timely performance of an estimated four to five million medical records in fiscal year 2005-2006.
Division Earns Innovation Award
In the Office of Data Quality and Collection (DQC), the Medical Data Management Section collects medical information submitted by providers. Submission of all medical bills must be made electronically to DQC within required time frames. More than four million medical claims are submitted annually from approximately 1,200 insurers. The DQC recently received a Davis Productivity Award, an annual award given to state employees and agencies whose work significantly and measurably increases productivity, promotes innovation, and saves money. The DQC was honored for its innovative program that mandates 100 percent compliance in electronically submitting medical data and provides a technological solution for ensuring compliance. The program saves the state an estimated $2.8 million annually.
The division's Office of Employee Assistance and Ombudsman (EAO) continues to enhance its mission to educate employers and employees about their obligations under the workers' compensation law and assist injured workers in obtaining benefits that are due to them. The EAO has recently refined its early intervention process to focus on providing assistance to workers whose injuries have the potential to be the most serious.
The division's efforts to inform and educate have helped protect workers and level the playing field for Florida businesses. Meaningful reforms, more aggressive investigation of workers' compensation fraud, and aggressive compliance efforts also have led to dramatic savings for Florida's businesses. The division is committed to continuing to look for ways to improve compliance and protect employees and employers in Florida.
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