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NCCI Files for 17.1% Rate Increase to be Effective October 1

Wednesday, July 13, 2016   (0 Comments)
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NCCI FILES FOR 17.1% RATE INCREASE TO BE EFFECTIVE OCTOBER 1

 

Recently, the Florida Supreme Court made a ruling that will greatly impact the workers’ compensation rates for Florida employers.  Since 2003, Florida statutes placed statutory caps on the fees plaintiff’s attorneys could charge. On April 28, 2016, the Florida Supreme Court, in Castellanos vs. Next Door Company, determined that this statute was unconstitutional and now allows attorneys to charge hourly fees.

The National Council on Compensation Insurance (NCCI), the entity that establishes workers’ comp rates, has determined that the overall first-year impact of this ruling will affect the workers’ compensation system by 15%.  That plus the impact of the response to ratified updates to the Florida Workers’ Compensation Health Care Provider Reimbursement Manual has resulted in NCCI proposing average rate increases of 17.1%. Although the Department of Financial Services has NOT yet approved this rate increase, companies should prepare now for these changes in workers’ comp premiums.

NCCI proposes that the increased rates will apply to new and renewal policies that are effective on or after October 1, 2016. Additionally, NCCI proposes that the increased rates will apply to all policies in effect on October 1, 2016 on a pro-rata basis through the remainder of the term of these policies. 

It is recommended that employers contact their workers’ compensation providers to discuss how these rate increases will affect their premiums.

Contributed by the Employers Association Forum, Inc. (EAF). EAF is a non-profit corporate membership-based association dedicated to serving the business and HR communities with world-class HR tools, hotlines & legal compliance, news & trends, surveys & economic data, benefits & insurance, risk management, training & consulting, and leadership & organizational development. Click here to learn more about EAF membership benefits http://eafinc.org/about-eaf/value-of-membership/.


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