Florida Office of Insurance Regulation Disapproves National Council on Compensation Insurance (NCCI) One Percent Rate Increase; NCCI Can Re-Submit Filing
Oct 23, 2013
Florida Insurance Commissioner Kevin McCarty issued an Order today, October 23, 2013, notifying the National Council on Compensation Insurance (“NCCI”) that its 1 percent proposed annual rate filing increase in Florida’s workers’ compensation insurance rates has been disapproved due to an unjustified increase in production expenses.
To view the Order, click here.
NCCI can re-submit the rate filing to the OIR and a 0.7 percent increase would be approved to become effective on January 1, 2014, for new and renewal business. This approval would represent a 56 percent cumulative reduction in Florida workers’ compensation rates as a result of legislative reforms introduced in 2003, and would keep Florida rates comparable to other states.
The OIR conducted a public hearing regarding the proposed rate increase on October 1. To view a Colodny Fass& Webb recap of the hearing, click here.
“Although a marginal rate increase is necessary for worker’s compensation insurance in Florida, the underlying factors causing the spike in rate increases over the last four years still merit legislative attention,” said Florida Insurance Commissioner, Kevin M. McCarty. “Evidence from the hearing demonstrated that rates could be reduced by as much as 8.3 percent if the reimbursement for hospital inpatient, hospital outpatient and ambulatory surgical centers were statutorily limited to 120 percent of Medicare reimbursement.”
For more information about the 2014 NCCI annual rate filing, visit the OIR’s Past Public Rate Hearings By Date Web page.
Should you have any questions or comments, please contact Colodny Fass& Webb.
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