Workers’ Comp Rates Decrease 1.8 Percent Next Month

 

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On May 1, the Florida Office of Insurance Regulation approved a law-only filing that decreases workers’ comp rates by 1.8 percent, effective June 1, 2018.  This decrease is the result of the federal tax cut package signed into law at the end of last year, the Tax Cuts and Jobs Act, which produced an increase to many carriers’ profit and contingency margins. In response, the National Council on Compensation Insurance filed a corresponding rate decrease to offset the increases to insurance carriers.

What This Means for You

As a result of federal tax reform, job creators will experience lowered costs of doing business in the form of needed workers’ comp rate relief. However, this relief may only be temporary. The result is modest, albeit temporary, rate relief for businesses across the state of Florida.

It is expected that the National Council on Compensation Insurance will file its annual experience filing in late summer, and rate increases could be on the horizon.  The fact remains that while businesses across the state have continued to become safer and the severity of claims have decreased, attorney fees remain a cost driver in Florida’s workers’ comp system.  Recent data by the Office of Judges of Compensation Claims show that attorney fees increased by 36 percent over the previous year, and hourly attorney fees have jumped by 200 percent.

The experience rate filing expected in late summer will start to reflect some of this new data as a result of the Florida Supreme Court’s 2016 decision in Castellanos v. Next Door Company.

Join the Task Force

We need your help in pushing legislators to enact meaningful and comprehensive workers’ comp reform by addressing skyrocketing attorney fees. Join the Florida Chamber of Commerce’s Workers’ Compensation Task Force by contacting Carolyn Johnson at (850) 521-1235 or cjohnson@flchamber.com.

Choose Between Paying Higher Workers’ Comp Rates and Hiring New Employees

19.6% Workers’ Comp Rate Increase Could Impact You

It’s time for a legislative solution.

Today, the National Council on Compensation Insurance (NCCI) announced a recommended 19.6 percent workers’ comp rate increase, proposed effective beginning October 1.

If the rate filing is approved as filed increasing rates by 19.6 percent, Florida will have the highest premiums in the Southeast.

The increase results from two recent Florida Supreme Court rulings that deemed Florida’s attorney fee provision unconstitutional (Castellanos v. Next Door Company), and declared the current cap for temporary total disability (104 weeks) unconstitutional (Westphal v. City of St. Petersburg). According to the release by NCCI, “NCCI estimates that the impact of Westphal will be an increase in overall Florida workers compensation system costs of +2.2%.”

The Florida Chamber believes the Florida Legislature must address this rate increase to avoid harming Florida’s growing economy and private-sector job growth.

Get Involved:

The Florida Chamber’s Workers’ Compensation Task Force has been engaging Florida’s highest elected leaders since last year, preparing them for this outcome, and advocating for a legislative solution. We need your voice to help find a solution. Learn how you can join the Florida Chamber’s Workers’ Comp Task Force.

Learn More:

Read the Florida Chamber’s full release on today’s workers’ comp recommendation.
Read Mark Wilson’s, President and CEO of the Florida Chamber, article in the Naples Daily News, Let’s Keep Florida’s Workers’ Comp System Working.