Office Statement on NCCI Workers' Compensation Rate Filing to Address Recent Legal Changes
TALLAHASSEE, Fla. – The Office of Insurance Regulation received a workers’
compensation rate filing today by the National Council on Compensation
Insurance (NCCI). This rate filing was submitted to address the projected rate
impacts of two recent legal changes. The first
is the April 28th Florida Supreme Court decision in the case of Castellanos
v. Next Door Company (Castellanos), 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. The
second is related to updates within the Florida Workers’ Compensation Health
Care Provider Reimbursement Manual (HCPR Manual) per
Senate Bill 1402.
The total impact
is a combined rate increase of 17.1% equaling $623 million. NCCI is proposing a
15% statewide average rate increase to cover the first year impact to workers’
compensation costs in Florida due to the Castellanos decision and a 1.8%
increase related to the adoption of the 2015 Edition of the HCPR Manual, which
becomes effective July 1, 2016. NCCI is also proposing
an effective date of August 1, 2016 for new and renewal workers’ compensation
policies and that the 17.1% rate increase
apply to all workers’ compensation policies in effect as of August 1, 2016 on a
pro-rata basis for the remainder of each policy’s term.
rate hearing will be held in July to give NCCI an opportunity to discuss the
filing and interested parties and other stakeholders the ability to provide
testimony or comments. More details will be forthcoming at a later date.
NCCI is a licensed rating organization
authorized to make rate filings on behalf of workers’ compensation insurance
companies in Florida. For more information about this filing, read the NCCI
press release. The Office’s
statement on the Florida Supreme Court decision can be accessed here.