Workers’ compensation insurance is strong in Florida
A new report has been released by the Florida Office of Insurance Regulation concerning the state’s workers’ compensation insurance market. The report, which is issued annually, documents the trends that are being seen in the workers’ compensation insurance market and how these trends are affecting the market as a whole. According to the report, the workers’ compensation insurance market remains strong despite recent legislative changes and other factors that have impacted the market over the past year.
Report highlights declining rates, and the trends that are leading to rate increases
The report shows that premiums paid by employers have fallen by 56% since 2003, when a new law took effect to help relieve some of the financial strain represented by workers’ compensation insurance. This law set a limit on t he fees that could be charged by lawyers representing workers that were injured on the job. While the law has provided some financial relief in the realm of workers’ compensation insurance, the report notes that the effects it has had may be losing momentum.
Rising cost of medical care associated with higher workers’ compensation insurance rates
The report highlights three rate increases that have occurred over the past year after seven full years of rate decreases. This trend is likely to continue throughout Florida in 2013 and beyond. These rate increases are coming as the result of the rising cost of medical care and other factors relating to on-job injuries. Workers’ compensation is likely to steadily become more expensive for Florida employers unless these issues are addressed.
Limit on cost of prescription medication may be needed
The report suggests that one of the ways to curb the cost of workers’ compensation insurance is to limit how much health care providers can charge for prescription medications that are being offered to injured workers. In many cases, these medications can be exceedingly expensive, especially if they are relatively new to the market. In 2010, the Florida Legislature approved a bill that would address this issue, but the legislation was vetoed by then-Governor Charlie Crist.