Florida business owners could see their workers’ compensation premiums go up if regulators agree to raise rates by a recommended statewide average 8.9 percent.
The National Council of Compensation Insurance (NCCI) submitted its annual filing calling for the increase, which marks the second consecutive year the rating agency has requested a rate hike. Last year, NCCI filed for an average 8.3 percent increase. Insurance Commissioner Kevin McCarty reduced that to 7.8 percent, effective January 1 of this year.
NCCI attributed this year’s increase to an upsurge in claims frequency and loss trends, which the organization said could be attributed to a weak economy. It also pointed to so-called pill-mills that allow physicians to distribute drugs to injured workers from their office. Lawmakers enacted a law prohibiting the practice this year.
NCCI also noted that the increase marked the end of cost savings from the 2003 reforms, which helped reduce employers’ rates by 64.7 percent between 2003 and 2010. NCCI said it has adjusted underlying rates to reflect that “significant experience improvements are no longer occurring and are no longer expected,” NCCI said.
McCarty’s office plans a public hearing on the filing in October. The new rates would be effective Jan. 1, 2012.
Topics Florida Carriers Workers' Compensation
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