According to Kevin McCarty, the Florida Insurance Commissioner, the insurance rates for workers’ compensation are slated to increase by 8.9 percent, and will do so beginning on January 1, 2012.
By giving his approval for the rise in rates, McCarty has simultaneously refused the National Council on Compensation Insurance (NCCI) rate request, stating that there was a flaw in the council’s methodology. Equally, McCarty has denied another increase proposal by the NCCI regarding minimum premiums. Should the NCCI wish to continue to pursue its request, it will need to re-file.
Regardless, McCarty’s office has stated that the workers’ compensation increase was adequately justified.
That said, even after the increase has occurred, the state will still maintain the lowest rates for workers’ compensation among all of the large states, as well as the lowest throughout all of the Southeastern states.
McCarty explained that the rates will maintain a level that is still a cumulative 58.6 percent lower than it had been before 2003, when the rates were at their highest because the workers’ compensation laws had not yet been changed. Before that time, the state had held one of the highest positions for workers compensation rates in the entire country.
Whether or not it was a required increase in rates, the National Federation of Independent Business has released a statement that says that the change will add to the struggle faced by smaller businesses that are attempting to make it through the troubled economy, as well as for the thousands of individuals who are trying to find employment.