May 10, 2010
On Friday, the National Council for Compensation Insurance (NCCI) filed for a mid-term rate decrease for many Florida employers. This rate decrease is based upon a significant reduction in the assessments charged to Florida employers for maintenance of the Special Disability Trust Fund. That Fund was initially established to give Florida employers relief from the expenses that result from work injuries occurring to those employees who were hired with pre-existing medical conditions. However, the Fund became insolvent many years ago and ceased taking cases in 1998. Nonetheless, the assessments have continued to be paid by Florida employers for many years. Finally, that Fund is now maintained on a more stable basis and the continued collection of high assessments is no longer necessary. Accordingly, NCCI has requested the Office of Insurance Regulation (OIR) to grant a rate decrease of 4.2% for industrial classifications and F-classifications on new or renewed policies effective on or after July 1, 2010. Review NCCI’s full release on today’s filing.
This good news comes just on the heels of our report last week detailing how AIF was able to pass legislation that will dramatically lower workers’ comp prescription costs. NCCI has estimated that the measure will produce an additional 1.1% rate reduction as part of its regular annual filing that is scheduled to be submitted to OIR in August 2010. Review NCCI’s analysis of last week’s legislative victory.