Florida Regulators Endorse 14.5% Workers’ Comp Rate Increase
The Florida Office of Insurance Regulation (OIR) just approved a 14.5% hike in workers’ compensation rates. This was in response to the 19.6% rate filing that was submitted by the National Council on Compensation Insurance (NCCI). The rate increase was submitted due to the anticipated loss cost impact of two Florida Supreme Court decisions (Castellanos v. Next Door Company and Westphal v. City of St. Petersburg) and legislatively-mandated updates to the Florida Workers’ Compensation Health Care Provider Reimbursement Manual (HCPR Manual).
NCCI has until October 4th to approve the 14.5% increase or appeal it. If it is approved, the increase will occur for new and renewal policies as of December 1st. As you may recall, NCCI recommended a pro rata increase which would raise the rates of all current policies. Therefore, if NCCI approves it, this is better than anticipated news for employers.
This 12/1 increase will be in lieu of the annual filing that would have occurred on January 1st 2017. NCCI will be reviewing data over the next few months to determine if there needs to be an additional increase prior to the January 2018 filing.
Stay tuned for an additional update after NCCI makes their decision next week.
For more information about the cases that caused the increase, please see the links below.