Florida: Rate hike approved pending amendments

Looks like Florida's workers' comp rates will be heading up next year. Insurance Commissioner Kevin McCarty technically disapproved NCCI's proposed 8.9 percent rate hike but said he would allow the increase if certain conditions were met.

Rate changes for roofers and ambulance and EMS providers won't be included the increase. McCarty also did not accept changes for "F" classes for workers included under federal acts.

McCarty rejected NCCI's methodology for input parameters, including policyholder dividends, the loading for the dividends, and investment yields.

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Even with the increase, McCarty said Florida would still have the lowest workers' comp rates among the large states and in the Southeast. Also, he said overall there would be a 58.6 percent cumulative decrease in rates since legislative reforms were enacted in 2003.

In his order, McCarty expressed concern about evidence presented during the filing and subsequent hearing regarding increased costs associated with physician-dispensed repackaged drugs. "This practice has become a critical cost driver in the workers' compensation insurance marketplace," he said. "It is imperative that the Florida Legislature address this issue during the upcoming legislative session."

Read more at the WorkersComp Forum homepage.

December 5, 2011

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