Revised Workers’ Compensation Filing Would Produce 19.6% Increase
The National Council on Compensation Insurance (NCCI) has revised its previous 17.1% rate increase filing in light of the Florida Supreme Court’s recent decision in Westphal. The proposed increase is now 19.6%. The effective date of the proposed rates is October 1, 2016. However, the Office of Insurance Regulation has scheduled a public hearing on the proposed rates in the meantime– the public hearing is scheduled for August 16 in Tallahassee.
Following reforms in 2003, workers’ compensation rates in Florida fell by about 60% in the ensuing years. However, two recent Supreme Court cases have overturned provisions of the workers’ compensation law that limit certain benefits or costs. This created upward pressure on rates, which ultimately was quantified in NCCI’s filing. The filing has drawn the attention of business groups in Florida, which are concerned about the potential significant increases in their workers’ compensation premiums.