Florida regulators are closer than ever to reaching a decision on a substantial rate increase for workers’ compensation insurance in the state.
Insurance Commissioner David Altmaier told Florida Governor Rick Scott and other cabinet members that the Office of Insurance Regulation is “very close” to finishing its review of the proposal, which would see workers’ comp rates rise 19.6%.
The rate proposal came from the National Council on Compensation Insurance, which cites an April ruling from the state Supreme Court that struck down limits on attorneys’ fees for workers’ compensation cases.
Altmaier’s office set to work reviewing the proposal, which would take effect in October, and has been meeting with business groups, insurance companies, labor groups and attorneys since August.
By NCCI estimates, the nearly 20% rate hike will require Florida businesses to pay an additional $700 million per year in increased premiums.
Workers’ advocates are crying foul, citing the $1.8 billion in excess profits attained by insurers in the state.
“If insurance companies believe the court decisions will cost them money in attorney fees, they are essentially admitting that they intend to wrongfully deny benefits that are due to injured workers,” said Mark Touby, president of Florida’s Workers’ Advocates. “Florida’s business community should not be forced to pay higher premiums to subsidize insurance companies’ mistakes.”
If the proposal is approved, the new rates will go into effect October 1.
