NCCI Recommends 19.6% Increase in Workers Compensation Rates in Florida, Effective 10/1/16
The worker’s compensation environment in Florida continues to change. As you will recall from a recent News You Can Use, NCCI proposed a special mid-term 17.1% rate increase (effective August 1st) after the Castellanos decision struck down the cap on attorney’s fees. Since then, the Supreme Court also struck down the cap on temporary indemnity benefits with the Westphal decision (read more here). As a result, on June 30, 2016, NCCI amended their initial rate proposal estimating the impact of Westphal will increase the overall Florida workers compensation system costs by +2.2% (19.6% total). At the direction of the OIR, NCCI amended the effective date of the mid-term filing to October 1, 2016. It should be noted that the 19.6% is just a proposal and public hearings will be conducted before the Department of Insurance issues the final numbers.
This increase accounts for new claims starting October 1st and does not take into consideration the unfunded liability of claims that are currently open. Therefore, we are fully expecting another increase when the annual proposal is filed on January 1st.