Oregon study prompts Florida to call for legislative reform to reduce WC rates
Florida's insurance commissioner was reacting to the report from the Oregon Department of Consumer & Business Services showing Florida jumped 11 spots, from 40th to 29th most expensive for workers' comp rates. "Our office is committed to working with the Florida Legislature to address these cost drivers. Keeping workers' compensation rates affordable is critical for the financial health of Florida's businesses, continued job growth, and Florida's overall economy."
While the national median rate was $1.88 per $100 payroll, Florida's was less, at $1.82. The rate is also below Florida's rates prior to the implementation of legislative reforms in 2003.
Nevertheless, McCarty said the study "further validates that cost drivers in the system are contributing to rate increases, a pattern that has become more pronounced in the last three years." Among those mentioned recently are drug repackaging and reimbursement costs associated with in-patient/out-patient hospital care and ambulatory surgical centers.
Following the legislative reforms in 2003, "Florida experienced a significant and steady decline in workers' compensation insurance rates for seven years," McCarty's office said. "In 2010, this trend reversed and rates began to climb, as evidenced by increases of 7.8 percent in 2010 and 8.9 percent in 2011. The NCCI annual rate filing for 2012 reflects a pending rate request increase of another 6.1 percent."
Read more at the WorkersComp Forum homepage.
November 19, 2012
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