NCCI Proposes Nearly 20% Florida Workers Comp Rate Increase

July 5, 2016

The Florida Office of Insurance Regulation (OIR) announced July 1 that the National Council on Compensation Insurance (NCCI) filed an amended rate filing to address a third legal change affecting Florida’s workers’ compensation system. This amended filing increases NCCI’s initial proposed combined average rate increase from 17.1 percent to 19.6 percent.

Individual projected rate impacts for all three recent legal changes include the following:

  • A 2.2 percent projected rate increase for the June 9th Florida Supreme Court decision in the case of Westphal v. City of St. Petersburg, in which the Florida Supreme Court found the 104-week statutory limitation on temporary total disability benefits in Section 440.15(2)(a), Florida Statutes, unconstitutional because it causes a statutory gap in benefits in violation of an injured worker’s constitutional right of access to courts. The Supreme Court reinstated the 260-week limitation in effect prior to the 1994 law change.
  • A 15 percent projected rate increase for the April 28th Florida Supreme Court decision in the case of Castellanos v. Next Door Company, which found the mandatory attorney fee schedule in Section 440.34, Florida Statutes, unconstitutional as a violation of due process under both the Florida and United States Constitutions.
  • A 1.8 percent projected rate increase related to updates within the Florida Workers’ Compensation Health Care Provider Reimbursement Manual (HCPR Manual) per Senate Bill 1402. The manual became effective on July 1, 2016.

NCCI is proposing an effective date of October 1, 2016 for new and renewal workers’ compensation policies and that the 19.6 percent rate increase apply to all workers’ compensation policies in effect as of October 1, 2016 on a pro-rata basis for the remainder of each policy’s term.

OIR has scheduled a public rate hearing for August 16, 2016 at 9:00 a.m. to give NCCI an opportunity to discuss the filing and interested parties and other stakeholders the ability to provide testimony or comments. The hearing will be held in the Jim King Committee Room, 401 Senate Office Building, 404 South Monroe Street, Tallahassee, Florida. A media advisory with more details will be released at a later date.

NCCI is a licensed rating organization authorized to make rate filings on behalf of workers’ compensation insurance companies in Florida. The Florida Office of Insurance Regulation has primary responsibility for regulation, compliance and enforcement of statutes related to the business of insurance and the monitoring of industry markets.

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Latest Comments

  • October 12, 2016 at 9:24 pm
    Paul says:
    LowRateWorkComp renewed our policy in August and our increase will not take effect until our next renewal with this carrier. This is great news for any clients that you curren... read more
  • August 5, 2016 at 8:02 pm
    Barry Shapiro says:
    My business cannot afford a 20% increase, thank you.
  • July 11, 2016 at 2:05 pm
    Agent says:
    Correct 2, Sky Rocket. The formula skews everything. Blame the idiot actuaries/geeks in charge for this mess. Insureds will not be happy campers when they see the renewal ... read more
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