Ditchmen • NUCA of Florida Ditchmen • June 2016 | Page 10

NCCI Workers’
Compensation Rate
Filing to
Address Recent

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a
g
Le Changes

via The Florida Office of Insurance Regulation
The Office of Insurance Regulation received a workers’ compensation rate filing
today by the National Council on Compensation Insurance (NCCI). This rate filing was
submitted to address the projected rate impacts of two recent legal changes. The first is
the April 28th Florida Supreme Court decision in the case of Castellanos v. Next Door Company
(Castellanos), which found the mandatory attorney fee schedule in Section 440.34, Florida
Statutes, unconstitutional as a violation of due process under both the Florida and United States
Constitutions. The second is related to updates within the Florida Workers’ Compensation Health
Care Provider Reimbursement Manual (HCPR Manual) per Senate Bill 1402.
The total impact is a combined rate increase of 17.1% equaling $623 million. NCCI is proposing a
15% statewide average rate increase to cover the first year impact to workers’ compensation costs
in Florida due to the Castellanos decision and a 1.8% increase related to the adoption of the 2015
Edition of the HCPR Manual, which becomes effective July 1, 2016. NCCI is also proposing an
effective date of August 1, 2016 for new and renewal workers’ compensation policies and that the
17.1% rate increase apply to all workers’ compensation policies in effect as of August 1, 2016 on a
pro-rata basis for the remainder of each policy’s term.
A public rate hearing will be held in July to give NCCI an opportunity to discuss the filing and
interested parties and other stakeholders the ability to provide testimony or comments. More
details will be forthcoming at a later date.
Latest update at the Construction Indusrty Forum on July 22. Click here to learn more.

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DITCHMEN • JUNE 2016