Study Shows Florida Workers Comp Rates Rising Compared to Other States
The Florida Office of Insurance Regulation cited a recent Oregon Department of Consumer & Business Services (DCBS) study showing that Florida has jumped 11 spots (from 40th to 29th) among the most expensive state for workers’ compensation insurance. The study compared each state’s rates to the national median rate of $1.88 per $100 of payroll. Notably, however, Florida’s rate of $1.82 remains below the median.
“The Oregon study provides further evidence that we need to be proactive in considering legislative options to keep Florida’s workers’ compensation rates nationally competitive,” said Florida Insurance Commission Kevin M. McCarty. “Our Office is committed to working with the Florida Legislature to address these cost drivers. Keeping workers’ compensation rates affordable is critical for the financial health of Florida’s businesses, continued job growth, and Florida’s overall economy.”
Florida’s workers’ compensation rate environment improved greatly after legislative reforms were enacted in 2003. However, in recent years rates seem to have reached their bottom and cost drivers are contributing again to increases. The OIR continues to support addressing legislative issues such as drug repackaging and reimbursement costs associated with in-patient/out-patient hospital care and ambulatory surgical centers.
The NCCI annual rate filing for 2012 is currently under review and the OIR recently conducted a public hearing on the rates. The filing reflects a proposed rate request increase of 6.1%.