Home | Organization | Services | Member Benefits
Legislative | Socieconomics | Calendar | Contact & Proposals

News

Have a proposal for FOGS or looking for a service?
Use this link to contact our office.
More...

Thank You!
FOGS and the Florida Section ACOG recognize their corporate supporters
More...

Liability Issues Report
Please use this form liberally to report the related practice problems you are facing
The Form

Login

On Call Medical Coats
FOGS has teamed up with On Call Medical Coats to offer our members quality embroidered labcoats
Shop for Coats

FOGS Endorsed Malpractice Carrier offering a 5% discount to FOGS members
More Info

Lubell & Rosen
FOGS Endorsed
Pre-Paid Legal Defense
More Info

Your practice could receive a dividend of up to 24.8% of your workers compensation premium.
More Info

Insurance Update => Autumn

The year 2007 is turning out to be another good one for medical practices that provide workers' compensation for their employees. As a result of some favorable legislative action that started in 2003, the rate for physician/clerical (8832) has decreased for the second straight year. As of January 1, 2007 the rate has been lowered from .87¢ to .74¢ for every $100 in payroll. This will provide some welcome relief to the otherwise climbing costs of running a medical practice.

Florida law requires any non–construction employer with 4 or more employees (full or part–time) to provide workers' compensation coverage to their employees. The Division of Workers' Compensation, Bureau of Compliance has been given increased authority to ensure employers obtain and maintain the required coverage. The department can now issue a stop–work order (SWO) for employers who fail to comply with the law. In addition to the SWO, employers are assessed a penalty equal to 1.5 times the amount they would have paid in workers' compensation premiums for the preceding three years. Employers are also subject to a penalty of $1,000 for each day they violate the SWO, which is now a third-degree felony.

Many officers of a medical corporation choose to be exempt from the workers' compensation policy for economic reasons. This should be discussed with your agent or carrier prior to making the final decision. A physician corporate officer's payroll is capped at $108,000 making an officer's premium approximately $799. This should be considered when compared to the potential benefits. If the officer makes the decision to be exempt from the policy, he or she should notify their health insurance carrier to inform them in order to avoid payment of benefits issues if the exempted officer were to be injured in the course and scope of their employment.

If a physician or group decides to change the corporation name, it is important to remember that any exempted officer will need to re–apply for an exemption under the new corporate name. The exemption does not automatically transfer to the new corporation and the Division of Workers' Compensation requires an officer to re–apply for the exemption under the new name.

There is a wonderful benefit to workers' compensation insurance policies that very few practices utilize: The insurance carrier's risk management team. Most insurance companies have risk management personnel that are happy to assist you in your efforts to maintain a safe working environment for your employees. In the case of medium to large— sized groups, the carriers will actually send a risk manager to your location to evaluate the practice and provide recommendations if necessary. Other excellent places to obtain information are the carrier's website and the division website at www.fldfs.com. All of the necessary forms for compliance can be found on the division website. Utilize your agent, the carrier, or feel free to call me at 800-966-2120 if you have any questions.

Tom Murphy is a workers' compensation and medical malpractice insurance specialist agent with the firm of Danna— Gracey, Inc. in downtown Delray Beach. He can be reached at 561–276–3553 or 800–966–2120 or Murphy@dannagracey.com Information in this article does not establish a standard of care, nor is it a substitute for legal advice. The information and suggestions contained here are generalized and may not apply to all practice situations. Obtain legal advice from a qualified attorney for a more specific application to your practice. This information should be used as a reference guide only.