McCarty Orders NCCI to Further Lower Florida’s Workers’ Comp Rates

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 percent. The Order signed Nov. 3 is a disapproval of the proposed 1.9 percent decrease NCCI included in its rate filing, the Office of Insurance Regulation (OIR) said in a statement.

If the rate filing is resubmitted to OIR by Nov. 9 with the required changes, McCarty will approve the filing, OIR said.

“Florida’s workers’ compensation market is both competitive and affordable. This approval would represent a 60 percent 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 McCarty. “It allows Florida’s businesses to continue growing economically, while helping injured workers get the medical assistance they need to return to work.”

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. OIR said it will be working collaboratively with these parties to learn more about how best to address these issues.

Additionally, 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. OIR said it is closely monitoring these cases.

Related:

• NCCI Proposes Decrease to Florida Workers’ Comp Rates
• Florida Supreme Court Asked to Decide Constitutionality of Workers’ Comp
• Florida Busts Major Workers’ Comp Fraud Scam Involving Multiple Shell Companies
• South Carolina Jumps Aboard Workers’ Comp Alternative Bandwagon
• Workers’ Comp Industry Improved in 2014 But NCCI Sees Trouble Ahead
• Public Radio Report Puts Spotlight on Workers’ Compensation’s ‘Grand Bargain’

https://www.scribd.com/doc/288431067/Florida-Workers-Comp-Rate-Order