Drug repackaging loophole pains Florida businesses

There continue to be many factors driving up the cost of doing business in Florida and the ability for businesses to sustain their employees and further create jobs. This year, the Florida Legislature must work to close a loophole in the workers' compensation system that is significantly impacting Florida businesses by allowing physicians to pass along exorbitant prescription prices to employers.

As it stands, this loophole allows re-packagers or physicians to dispense repackaged drugs and then charge employers inflated prices that greatly exceed the average wholesale price (AWP) for that same medication at rates up to 679 percent more than what a pharmacy would charge.

Currently, proposals in the state House and Senate would establish fairness in prescription drug reimbursement rates and reduce the rising workers' compensation insurance rates being forced upon businesses. If this loophole is closed, Florida Insurance Commissioner Kevin McCarty has committed to granting a rate reduction in workers' compensation insurance premiums of the 2.5 percent that can be attributed to drug repackaging. This would result in $62 million in savings for businesses that could be pumped back into Florida's economy.

It is astounding that the drug repackaging loophole is among the biggest contributors in rising workers' compensation insurance rates for private businesses — which should be focusing on creating jobs and providing relief to Florida's ailing economy instead of having to pay unjust prescription costs and unnecessary premium hikes.

Addressing the drug repackaging loophole would not limit the ability of physicians to dispense prescription drugs, nor would it prevent injured workers from choosing where they receive their medication. It would simply clarify that regardless of where this medication is received, the cost would not exceed the statutory AWP fee schedule.

Although Florida continues to have a sound and reliable workers' compensation system for businesses, our coalition of more than 60 businesses and employers strongly believes this loophole must be addressed this year and that the integrity of Florida's workers' compensation system must be restored before this becomes a prohibiting cost factor for businesses.