NCCI 17.1 Percent Florida Workers’ Compensation Rate Increase Brings Calls for Special Legislative Session

May 27, 2016


Florida’s business community decried a 17.1 percent rate increase filing made by the National Council on Compensation Insurance (“NCCI”) today, May 27, 2016.  Organizations such as the Florida Chamber are preparing to call upon the Florida Legislature to schedule a Special Session to address the issue.

Should the Florida Office of Insurance Regulation (“OIR”) approve the filing, the increase would be effective August 1, 2016.  

Today’s recommended rate increase primarily stems from a recent Florida Supreme Court ruling that deemed Florida’s attorneys’ fees provision unconstitutional.

NCCI said the recent Florida Supreme Court ruling would increase workers’ compensation costs by 15 percent.  An additional amount of the proposal deals with a law passed this year that relates to health-care provider reimbursements.  Overall, the NCCI said the combined impact would total $623 million.

The OIR issued the following statement on NCCI’s filing today:

“The Office of Insurance Regulation received a workers’ compensation rate filing today by the National Council on Compensation Insurance (NCCI). This rate filing was submitted to address the projected rate impacts of two recent legal changes.

“The first is the April 28th Florida Supreme Court decision in the case of Castellanos v. Next Door Company (Castellanos), which found the mandatory attorney fee schedule in Section 440.34, Florida Statutes, unconstitutional as a violation of due process under both the Florida and United States Constitutions.  The second is related to updates within the Florida Workers’ Compensation Health Care Provider Reimbursement Manual (HCPR Manual) per Senate Bill 1402.

“The total impact is a combined rate increase of 17.1% equaling $623 million.  NCCI is proposing a 15% statewide average rate increase to cover the first year impact to workers’ compensation costs in Florida due to the Castellanos decision and a 1.8% increase related to the adoption of the 2015 Edition of the HCPR Manual, which becomes effective July 1, 2016.  NCCI is also proposing an effective date of August 1, 2016 for new and renewal workers’ compensation policies and that the 17.1% rate increase apply to all workers’ compensation policies in effect as of August 1, 2016 on a pro-rata basis for the remainder of each policy’s term.

“A public rate hearing will be held in July to give NCCI an opportunity to discuss the filing and interested parties and other stakeholders the ability to provide testimony or comments.  More details will be forthcoming at a later date.

“NCCI is a licensed rating organization authorized to make rate filings on behalf of workers’ compensation insurance companies in Florida.  For more information about this filing, read the NCCI press release. The Office’s statement on the Florida Supreme Court decision can be accessed here.”


Hyperlinks to news coverage of today’s developments are below:



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