Res 95-93 RESOLUTION NO. 95-93
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
DELRAY BEACH, FLORIDA, ENCOURAGING THE FLORIDA
LEGISLATURE, THE CABINET AND THE APPROPRIATE STATE
AGENCIES AND DEPARTMENTS TO TAKE STEPS TO LIMIT AND
REDUCE THE COST INCREASES OF WORKERS' COMPENSATION
INSURANCE COVERAGE.
WHEREAS, the cost of workers' compensation coverage has
increased dramatically for the past fifteen (15) years; and
WHEREAS, Florida Statutes require all employers, public and
private, to secure workers' compensation coverage or self-insure such
obligations; and
WHEREAS, various parties and individuals have caused such
coverage to be greatly expanded to include mental and physical
ailments in addition to on-the-job injuries; and
WHEREAS, the incidence of claims has also risen dramatically
in the past decade, many of which are questionable and fraudulent; and
WHEREAS, the system is designed to be non-adversarial and
adjudicators have often favored claimants; and
WHEREAS, the cost of medical treatment has also risen
dramatically over the past decade, due to increased medical usage, the
development and use of expensive technology and an increasing
propensity for malpractice litigation; and
WHEREAS, the Governor and the Legislature and many other
prominent Floridians and business persons have recognized the
seriousness of this problem to the point of financial crises for many
employers.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS:
Section 1. That the Governor, Cabinet and the Legislature
publicly recognize the seriousness of this problem and take immediate
steps to protect responsible employers and employees from the
devastating financial burdens associated with workers' compensation
coverage.
Section 2. That the Governor and the Legislature
immediately convene a commission of experts on this subject and direct
the commission to carefully evaluate all coverages, claims and costs,
and recommend necessary and viable options to help alleviate this
dramatic problem.
Section 3. That a team of medical and judicial experts be
mobilized to determine appropriate limits on all costs and coverage in
this program, and that the involvement of claimants' attorneys be
closely examined, with the goal of curtailing the costly tort-like
atmosphere, and replacing it with a more "no-fault" approach.
Appropriate thresholds should be established before adversarial legal
involvement is allowed.
Section 4. That if these measures fail to contain and
reduce these costs, then remedial legislation be adopted to limit
claims to proven on-the-job injuries, and that other necessary
treatments be assigned to health care providers through the employers'
system of health insurance in order to overcome the substantial
incentive for all workers to seek compensation as well as treatment.
Section 5. That special benefits granted to specific
municipal employees that have no realistic basis or medical support,
such as the hypertension heart and lung disease presumption for Fire
personnel, be i~ediately reexamined and reevaluated.
Section 6. That copies of this resolution be sent to the
Governor, the Cabinet, me~ers of the Legislative Delegation, the
President of the Senate, the Speaker of the House, and the Florida
League of Cities.
PASSED AND ADOPTED in regular session on this the 28th day
of Septe~er, 1993.
ATTEST:
Acting City Clerk
- 2 - Res. No. 95-93
MEMORANDUM
TO: MAYOR AND CITY COMMISSIONERS
FROM: CITY MANAGER~
SUBJECT: AGENDA ITEM ~ ~ - MEETING OF SEPTEMBER 28. 1993
RESOLUTION NO. 95-93
DATE: September 24, 1993
This is a resolution encouraging the Florida Legislature, Cabinet and
appropriate State agencies and departments to take steps to limit and
reduce the cost increases of Workers' Compensation Insurance coverage.
The aim of this resolution is to get the Governor, Cabinet and
Legislature to take steps to protect responsible employers and
employees from the devastating financial burdens associated with
Workers' Compensation coverage.
Recommend approval of Resolution No. 95-93.
lIT',' DF I]EL#IW BEI:IgH
100 N.W. 1st AVENLJE · DELRAY []EACH, FLORIDA 33444 · 407/243-7000
MEMORANDUM
'1'O: Joseph M. Safford, Finance Dir. ector
· 4,
FROM: Lee R. Graham, Risk Manager~_~
DATE: September 21, 1993
SUBJECT: City Manager' s Memorandum Re~ardin~ Workers' Co~ensation
Working actively with the Workers' Compensation system, ~ can see that it is
apparent why the costs escalate as they have co~tinued to do over the past
years.
I have read the City Manager's memorandum to Mayor Lynch, and agree with the
Mayor's brief colm~ents. He cites litigation as a major cause of the soaring
costs of Workers' Compensation rates for employers. He recommends a
threshold before a suit can occur. He identifies medical and legal abuse as
the cause of the problem.
Workers' Compensation was the first of the actual no-fault insurance
coverages, with the intention being that an injured employee receive medical
treatment and compensation for lost wages without having 'to establish blame
for an accident. This was to be a remedy for a costly and inefficient prior
system that ate up large sums of money in court, while not providing properly
for an injured worker. The current law allows too much lawyer involvement,
thus driving up the costs of insurance.
Co~Eoissioner Ellingsworth has brought back the form resolution from the
Florida League of Cities which they have suggested be adopted by member
cities. The resolution is in carefully worded general te~Qs suggesting
problem recognition as to seriousness, and asks for 'the' Governor and
Legislature to study and make changes in the system.
Since the resolution is by design more general than specific, it could very
well be adopted as is. Still, additional wording in Section three could be
added to express the concerns given by 'the Mayor. I have annotated Section
three to add some of these concerns.
~f the resolution is accepted by lawmakers in Tallahassee, additional
lobbying could be accomplished when actual study panels or study groups are
established. This would be a proper forum to discuss lawyer involvement,
medical treatment and cost abuses, etc.
Hopefully, the problem will be taken seriously by the State Government
Officials in order to correct a very serious e~loyer crises.
LRG/rc
THE EFFORT ALWAYS MATTERS
£1T¥ DF I]ELRIt¥ BEII[H
$00 ~ ~',/ ~lst AVEI',~LJE · OELRAY BEACH, FLOI~IOA 33444
MEMORANDUM
~£orn '
~ Thomas E. Lynch, Mayor
F~Avr: David T. Harden, City Manager,S/
SUBJECT: WORKERS' COMPENSATION
DATE: August 16, 1993
Commissioner Ellingsworth brought back the attached form
resolution from the Florida League of Cities meeting. I would
appreciate it if you could review it and, based on your
knowledge of insurance, suggest appropriate changes. After you
have done that, if you will return it to me, I will put it on a
City Commission agenda for consideration.
DTH: mld
Attachment
MEMO Fr'om
CiTY MANAGEFI'S OFFICE