Commissioner McCarty Orders Workers' Compensation Rates Lowered by 5.1%
TALLAHASSEE, Fla. – Florida Insurance Commissioner Kevin M. McCarty has ordered the
National Council on Compensation Insurance (NCCI) to lower workers’
compensation rates for Florida employers by 5.1%. The Order signed today is a disapproval of the
proposed 1.9% decrease NCCI included in its rate filing. If the rate filing is
resubmitted to the Office by Monday, November 9th with the required
changes, the Office will approve the filing.
“Florida’s workers’ compensation market is both competitive and
affordable. This approval would represent a 60% cumulative reduction in Florida
workers’ compensation rates since 2003 and having competitive rates is a
critical element in bringing new jobs to our state,” said Commissioner
McCarty. “It allows Florida’s businesses to continue growing economically,
while helping injured workers get the medical assistance they need to return
NCCI files on
behalf of approximately 260 workers’ compensation insurance companies with
Florida policyholders. A public hearing for the rate filing was held on October 21, 2015.
Interested parties representing the roofing industry and Professional Employer
Organizations (PEO) provided testimony on a variety of issues to include
expressing concerns about potential fraudulent activity within the workers’
compensation system. PEO’s are third party organizations that provide services
for many small business employers including providing workers’ compensation
coverage. The Office will be working collaboratively with these parties to
learn more about how best to address these issues.
several workers’ compensation court cases are pending before the Supreme Court,
which include Westphal v. City of St. Petersburg, Castellanos v. Next Door
Company and Stahl v. Hialeah Hospital. The possible negative impact from these
court case decisions ranges from rendering the entire workers’ compensation
system unconstitutional to increasing workers’ compensation costs. The Office
is closely monitoring these cases.
information about the 2016 NCCI annual rate filing, visit the Office’s “Past Public Rate
Hearings “ website page.