House Staff Analysis: PCS for HB 1299, Payments for Workers' Compensation Expert Witnesses

Summary

A House of Representatives staff analysis dated March 25, 2023 of the PCS for HB 1299, Payments for Workers' Compensation Expert Witnesses, sponsored by the Insurance & Banking Subcommittee. It describes Florida's Workers' Compensation Law and the oversight role of the Department of Financial Services, Division of Workers' Compensation. The analysis states that the law caps health care provider expert witness pay at $200, per hour, or $200, per day for certain providers, and that the bill raises those caps to $300, per hour and $300, per day. The section directory lists an amendment to s. 440.13, F.S. and an effective date of July 1, 2023. The fiscal analysis reports no revenue impact and a likely insignificant negative impact on state and local government expenditures, and notes possible higher claim costs in litigated cases.

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                                  HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     PCS for HB 1299 Payments for Workers' Compensation Expert Witnesses
SPONSOR(S): Insurance & Banking Subcommittee
TIED BILLS:       IDEN./SIM. BILLS:

  REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                         BUDGET/POLICY CHIEF

  Orig. Comm.: Insurance & Banking Subcommittee                                       Lloyd              Lloyd


                                             SUMMARY ANALYSIS
Florida’s Workers’ Compensation Law (WC Law) requires employers to provide injured employees all
medically necessary remedial treatment, care, and attendance for such period as the nature of the injury or the
process of recovery may require. The Department of Financial Services, Division of Workers’ Compensation
(DFS), provides regulatory oversight of Florida’s workers’ compensation system, including the workers’
compensation health care delivery system. DWC is responsible for ensuring that employers provide medically
necessary treatment, care, and attendance for injured workers.

The WC Law limits the amount a health care provider can be paid for expert testimony during depositions on a
workers’ compensation claim. As an expert medical witness, a workers’ compensation health care provider is
limited to a maximum $200, per hour, unless they only provided an expert medical opinion following a medical
record review or provided direct personal services unrelated to the case in dispute, then they limited to a
maximum $200, per day.

The bill increases the maximum hourly amount allowed expert witnesses from $200, per hour, to $300, per
hour. For those expert witnesses subject to the daily rate, the maximum amount allowed is increased from
$200, per day, to $300, per day.

The bill has no impact on state or local government revenue. It has a negative, but likely insignificant, impact
on state and local government expenditures and has a positive and negative impacts on the private sector.

The bill is effective July 1, 2023.




This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: pcs1299.IBS
DATE: 3/25/2023
                                                     FULL ANALYSIS

                                              I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
        Division of Workers’ Compensation

         Florida’s Workers’ Compensation Law 1 (WC Law) requires employers to provide injured employees all
         medically necessary remedial treatment, care, and attendance for such period as the nature of the
         injury or the process of recovery may require.2 The Department of Financial Services, Division of
         Workers’ Compensation (DFS), provides regulatory oversight of Florida’s workers’ compensation
         system, including the workers’ compensation health care delivery system. The law specifies certain
         reimbursement formulas and methodologies to compensate workers’ compensation health care
         providers 3 that provide medical services to injured employees. Where a reimbursement amount or
         methodology is not specifically included in statute, the Three-Member Panel is authorized to annually
         adopt statewide schedules of maximum reimbursement allowances (MRAs) to provide uniform fee
         schedules for the reimbursement of various medical services. 4 DFS incorporates the MRAs approved
         by the Three-Member Panel in reimbursement manuals 5 through the rulemaking process provided by
         the Administrative Procedures Act.6

        Medical Services
        DWC is responsible for ensuring that employers provide medically necessary treatment, care, and
        attendance for injured workers. Healthcare providers must receive authorization from the insurer before
        providing treatment and submit treatment reports to the insurer. Insurers must reimburse healthcare
        providers based on statewide schedules of maximum reimbursement allowances developed by the
        DWC or an agreed-upon contract price. DWC mediates utilization and reimbursement disputes. 7

         Expert Witness Fees for Health Care Providers

         The WC Law limits the amount a health care provider can be paid for expert testimony during
         depositions on a workers’ compensation claim. As an expert medical witness, a workers’ compensation
         health care provider is limited to a maximum $200, per hour, unless they only provided an expert
         medical opinion following a medical record review or provided direct personal services unrelated to the
         case in dispute, then they limited to a maximum $200, per day.8

         Effect of the Bill

        The bill increases the maximum hourly amount allowed expert witnesses from $200, per hour, to $300,
        per hour. For those expert witnesses subject to the daily rate, the maximum amount allowed is
        increased from $200, per day, to $300, per day.

    B. SECTION DIRECTORY:
        Section 1. Amends s. 440.13, F.S., relating to medical services and supplies; penalty for violations;
                   limitations



1 Ch. 440, F.S.
2 S. 440.13(2)(a),   F.S.
3 The term “health care provider” includes a physician or any recognized practitioner licensed to provide skilled services
pursuant to a prescription or under the supervision or direction of a physician. It also includes any hospital licensed under
chapter 395 and any health care institution licensed under chapter 400 or chapter 429. S. 440.13(1)(g), F.S.
4 S. 440.13(12), F.S.
5 Ss. 440.13(12) and (13), F.S., and Ch. 69L-7, F.A.C.
6 Ch. 120, F.S.
7 S. 440.13, F.S.
8 S. 440.13(10), F.S.
STORAGE NAME: pcs1299.IBS                                                                                              PAGE: 2
DATE: 3/25/2023
       Section 2. Providing an effective date of July 1, 2023.

                            II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

   A. FISCAL IMPACT ON STATE GOVERNMENT:

       1. Revenues:
           None.

       2. Expenditures:
           The bill may have a negative, likely insignificant, impact on expenditures for litigated state employee
           workers’ compensation claims to the extent the state elects to increase expert witness fees, as
           allowed by the bill.

   B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

       1. Revenues:
           None.

       2. Expenditures:
           The bill may have a negative, likely insignificant, impact on self-insured local government
           expenditures for litigated public employee workers’ compensation claims to the extent they elect to
           increase expert witness fees, as allowed by the bill.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       The bill may increase payments to medical providers who appear as expert witnesses in litigated
       workers’ compensation claim.

       The bill may increase worker’s compensation claim costs in litigated cases. If this is significant enough
       to impact workers’ compensation rates, it may increase workers’ compensation premiums paid by
       employers.

   D. FISCAL COMMENTS:
       None.

                                               III. COMMENTS

   A. CONSTITUTIONAL ISSUES:

       1. Applicability of Municipality/County Mandates Provision:
          Not Applicable. This bill does not appear to require counties or municipalities to spend funds or take
          action requiring the expenditures of funds; reduce the authority that counties or municipalities have
          to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
          municipalities.

       2. Other:
          None.

   B. RULE-MAKING AUTHORITY:
       None provide by the bill.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.
STORAGE NAME: pcs1299.IBS                                                                                  PAGE: 3
DATE: 3/25/2023
                            IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES




STORAGE NAME: pcs1299.IBS                                                 PAGE: 4
DATE: 3/25/2023


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