NCCI Filing Would Drop Workers’ Compensation Rates 14.1 Percent Statewide
Aug 27, 2008
Florida Insurance Commissioner Kevin McCarty announced today, August 27, 2008, the receipt of a rate filing from the National Council on Compensation Insurance (“NCCI”) that would, if approved, decrease Florida workers’ compensation rates by an average of 14.1 percent statewide.
The Florida Office of Insurance Regulation’s press release is reprinted below.
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Proposed Workers’ Compensation Insurance Rates Would Drop For 6th Consecutive Year
TALLAHASSEE, Fla. — Florida Insurance Commissioner Kevin McCarty announced today that he has received the latest rate filing from the National Council on Compensation Insurance (NCCI) for workers’ compensation insurance rates due to become effective next year. The filing calls for an overall average rate decrease of 14.1 percent statewide, which would produce a savings of more than $465 million for Florida employers.
If approved, the rate decrease would be the sixth consecutive drop since the Legislature passed sweeping reforms to the state’s workers’ compensation system in 2003. The cumulative overall statewide average rate decrease since 2003 would total 58.3 percent.
“These lower workers’ compensation rates will have a positive impact on every segment of our marketplace,” said Commissioner McCarty. “It is great news for business owners and their employees, because Florida employers are paying lower rates, and benefits are being delivered fairly and effectively. The reduction of fraud and abuse in the system is certainly paying off.”
Prior to the legislative reforms, the state of Florida consistently ranked No. 1 or No. 2 in the country for the highest workers’ compensation rates; however, post-reform, Florida has dropped out of the top 10 rankings.
NCCI, which produces and files rates for insurers in many states, said the rate decline was primarily due to a significant drop in claims frequency and a reduction in the costs of claims.
A rate hearing on the filing will be scheduled by the Office of Insurance Regulation in October, and the rate change would be effective for new and renewal business as of Jan. 1, 2009.
The law passed in 2003 instituted provisions for enhanced fraud compliance and revised permanent and temporary disability definitions. It also set new parameters for attorney and physician compensation and improved dispute resolution procedures, in addition to making many other improvements to the system.
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