August 29, 2023
The National Council on Compensation Insurance has proposed an average 15.1% decrease in rates for Florida, starting Jan. 1, the latest and one of the largest reduction recommendations in more than a decade of rate filings.
The filing, which will be reviewed by the Florida Office of Insurance Regulation, follows an 8.4% decrease recommended last year, a 4.9% decrease in 2021 and a 5.7% cut in 2020. The filing for 2024 was based on experience data from policy years 2020 and 2021 and comes despite an uptick in medical costs, NCCI said in a summary.
Florida’s medical costs are expected to rise due to recent medical fee schedule updates, finally allowed after years of debate. The state Department of Administrative Hearings in May dismissed a challenge from Zenith Insurance Co. and others that argued that parts of the reimbursement plan approved by the Division of Workers’ Compensation was out of line with other states and fees are based on inflated hospital charges, not actual payments accepted by the providers.