The Florida Office of Insurance Regulation recently issued a press release regarding the 14.5% Florida Workers Compensation Rate Increase, effective 12/01/2016. The Office has primary responsibility for regulation, compliance and enforcement of statutes related to the business of insurance and the monitoring of industry markets.
The Florida Office of Insurance Regulation has issued an Order that gives contingent approval to an overall combined average statewide rate increase of 14.5% versus the requested 19.6%. The revised rate increase would become effective on December 1, 2016 for new and renewal business, with no change in rates for current in-force policies.
The rate filing was originally submitted to address the impact of three recent legal changes, including two Florida Supreme court case decisions (Castellanos v. Next Door Company and Westphal v. City of St. Petersburg) and legislatively-mandated updates to the Florida Workers’ Compensation Health Care Provider Reimbursement Manual (HCPR Manual).
The individual rate impacts will include:
· A 10.1% statewide average rate increase for the decision in the case of Castellanos v. Next Door Company, which found the mandatory attorney fee schedule in Section 440.34, Florida Statutes, unconstitutional as a violation of due proces
· A 2.2% statewide average rate increase for the decision in the case of Westphal v. City of St. Petersburg, in which the Florida Supreme Court found the 104-week statutory limitation on temporary total disability benefits in Section 440.15(2)(a), Florida Statutes, unconstitutional because it causes a statutory gap in benefits in violation of an injured worker’s constitutional right of access to courts. The Supreme Court reinstated the 260-week limitation in effect prior to the 1994 law change.
· A 1.8% statewide average rate increase related to updates within the Florida Workers’ Compensation HCPR Manual per Senate Bill 1402. The manual became effective on July 1, 2016.
Biscayne Risk & Insurance Group understands Workers Compensation and the costs of not being properly covered. We work to assess your company’s risk and negotiate the appropriate insurance terms on your behalf. Contact one of our advisors today to walk through your options.