Florida Workers' Compensation Rate Increase 14.5% 12.01.16

Florida OIR posted this September 27, 2016 (all quoted direct)

Tuesday, September 27, 2016

Contact Info:

​Contact Information:
Amy Bogner/Karen Kees
(850) 413-2515                       
press@floir.com                    

TALLAHASSEE, Fla. – After a thorough review of the workers’ compensation insurance rate filing submitted by the National Council on Compensation Insurance (NCCI) and careful consideration of hundreds of public comments and testimony received from interested stakeholders, the Florida Office of Insurance Regulation (Office) has issued an Order that gives contingent approval to an overall combined average statewide rate increase of 14.5% versus the requested 19.6%.  Approval of the revised rate increase is contingent on NCCI amending the filing to include the recommended changes stipulated within the Order.  As ordered by the Office, the revised rate increase would become effective on December 1, 2016 for new and renewal business, with no change in rates for current in-force policies. The amended rate filing must be filed with the Office for review and approval no later than October 4, 2016.

The NCCI rate filing was originally submitted in May of this year and amended in June to address the impact of three recent legal changes, including two Florida Supreme court case decisions (Castellanos v. Next Door Company and Westphal v. City of St. Petersburg) and legislatively-mandated updates to the Florida Workers’ Compensation Health Care Provider Reimbursement Manual (HCPR Manual).

If NCCI submits the required amended rate filing and it is subsequently approved by the Office at an overall combined average statewide rate increase of 14.5%, the individual rate impacts will include:

·        A 10.1% statewide average rate increase for the April 28^th Florida Supreme Court decision in the case of Castellanos v. Next Door Company, 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.

·        A 2.2%  statewide average rate increase for the June 9^th Florida Supreme Court decision in the case of Westphal v. City of St. Petersburg, in which the Florida Supreme Court found the 104-week statutory limitation on temporary total disability benefits in Section 440.15(2)(a), Florida Statutes, unconstitutional because it causes a statutory gap in benefits in violation of an injured worker’s constitutional right of access to courts. The Supreme Court reinstated the 260-week limitation in effect prior to the 1994 law change.

·        A 1.8% statewide average rate increase related to updates within the Florida Workers’ Compensation HCPR Manual per Senate Bill 1402. The manual became effective on July 1, 2016.

For more information about the NCCI public hearing and rate filing, visit the Office’s “NCCI Public Rate Hearing” webpage.

​About the Florida Office of Insurance RegulationThe Florida Office of Insurance Regulation has primary responsibility for regulation, compliance and enforcement of statutes related to the business of insurance and the monitoring of industry markets. For more information about the Office, please visitwww.floir.com or follow us on Twitter @FLOIR_comm and Facebook. 

Division PPTs available from #WCI2016

The Florida Division of Workers' Compensation recently participated in the 71st Annual Workers' Compensation Educational Conference with the Workers' Compensation Institute, in Orlando, Florida.  The Division's breakout session included the following topics: Legislative and Rule Updates, Audits and Carrier Compliance, Medical Services and EDI Updates.  If you were unable to attend or would like to view the presentations, the Division power point has been published as a .PDF at http://www.myfloridacfo.com/Division/WC/noticesRules.htm.  

Please contact Brittany O'Neil at 850-413-1927 with any questions.

Division Announces Ask the Regulator

The Florida Division of Workers' Compensation, in conjunction with the Workers' Compensation Institute, is pleased to provide the opportunity for attendees to individually meet and speak with Division staff at the 71st Annual Workers' Compensation Educational Conference about regulatory issues that are important to your company.  This year we will offer two options for stakeholder assistance "Ask The Regulator" and "EDI On Demand."

Ask The Regulator: These one-one-one meetings will help maximize your time at the conference and provide the Division with an informal setting to interact with workers' compensation stakeholders.  The meetings will be held on Tuesday, August 23, 8:30 am - 11:30 am in the Tampa room at the Orlando World Center Marriott. Go to Florida DWC regulator (www.wci360.com/conference/ask-the-regulators) to schedule an appointment and identify the issues you would like to discuss with the Division.  This will ensure that the Division has the appropriate staff available to answer your questions.  An email will be sent to you confirming the time.

EDI On Demand: These EDI Triage & Training sessions are available upon email request and will provide access to Division staff on any EDI related issues and processes.  Please email Lisel.Laslie@myfloridacfo.com to request a session.  The meetings will be held on Tuesday, August 23, at the Orlando World Center Marriott.  An email will be sent to you confirming your meeting time.

Contact Brittany O'Neil, Policy Coordinator, Division of Workers' Compensation, 850-413-1927, email Brittany.oneil@myfloridacfo.com

Rule Making Announced for Rules 69L-7.501, 69L-7.100, and 69L-7.020

The notice below is directly quoted from the Division

The Florida Division of Workers' Compensation submitted a Notice of Proposed Rule Making for Rules 69L-7.501, 69L-7.100, and 69L-7.020, Florida Administrative Code.  The Division will host workshops on Thursday, July 28, 2016, at the times listed below at 2012 Capital Circle, SE, Room 102, Hartman Building, in Tallahassee, Florida.  All times are Eastern Standard Time.  The proposed rules are amended to adopt the 2016 Editions of the Florida Workers' Compensation Reimbursement Manual for Hospitals, Florida Workers' Compensation Reimbursement Manual for Ambulatory Surgical Centers (ASCs), and Florida Workers' Compensation Health Care Provider Reimbursement Manual as approved by the Three-Member Panel during a scheduled meeting held on April 20, 2016, pursuant to paragraph 440.13(12)(a), F.S.

- 9:00 am - 10:30 am, 69L-7.501, Florida Workers' Compensation Reimbursement Manual for Hospitals, 2016 Edition

- 10:30 am - 12:00 pm, 69L-7.100, Florida Workers' Compensation Reimbursement Manual for Ambulatory Surgical Centers (ASCs), 2016 Edition

- 1:00 pm - 2:30 pm, 69L-7.020, Florida Workers' Compensation Health Care Provider Reimbursement Manual, 2016 Edition

The official Notices of Development of Rulemaking appeared in Volume 42, Number 131 (https://www.flrules.org/BigDoc/View_Section.asp?Issue=2150&Section=1) of the Florida Administrative Weekly, published on July 7, 2016.  If you have questions about the contents of this notice, please contact Brittany O'Neil, Policy Coordinator, Division of Workers' Compensation at (850) 413-1927 or Brittany.Oneil@myfloridacfo.com.

To obtain copies of the Notice and Proposed Rule, please use the link below. 

https://www.flrules.org/gateway/ruleNo.asp?id=69L-7.501

https://www.flrules.org/gateway/ruleNo.asp?id=69L-7.100

https://www.flrules.org/gateway/ruleNo.asp?id=69L-7.020 

Florida Preferred Worker Program Repeal soon Complete

From the Division of Workers' Compensation (direct quoted)

Among the regulatory provisions amended by HB 613 (Chapter 2016-56, Laws of Florida) was the repeal of statutory provisions supporting the Preferred Worker Program under section 440.49, F.S. The aforementioned revision renders Rule Chapter 69L-11, F.A.C., entitled, “Preferred Worker Program,” obsolete; the rule chapter is repealed in its entirety. http://www.myfloridacfo.com/Division/WC/noticesRules.htm

The official Notice of Proposed Rule appeared in Volume 42, Number 119 of the Florida Administrative Register, published on June 20, 2016. If you have questions about the Notice, please contact Tom Krick, Unit Manager, Special Disability Trust Fund, Bureau of Financial Accountability, Division of Workers’ Compensation, Department of Financial Services at (850) 413-1651 or Tom.Krick@myfloridacfo.com. 

If requested in writing and not deemed unnecessary by the agency head, a rule hearing will be held Tuesday, July, 12, 2016, beginning at 2:00 p.m. in Room 102, Hartman Building, 2012 Capital Circle Southeast, Tallahassee, Florida. 

A copy of the Notice may be found via the following link:https://www.flrules.org/Gateway/View_notice.asp?id=17659837

http://www.myfloridacfo.com/Division/WC/noticesRules.htm

Division to offer Ask the Regulator again in August!

The Florida Division of Workers' Compensation, in conjunction with the Workers' Compensation Institute, is pleased to provide the opportunity for attendees to individually meet and speak with Division staff at the 71st Annual Workers' Compensation Educational Conference about regulatory issues that are important to your company.  This year we will offer two options for stakeholder assistance "Ask The Regulator" and "EDI On Demand."

Ask The Regulator:  These one-one-one meetings will help maximize your time at the conference and provide the Division with an informal setting to interact with workers' compensation stakeholders.  The meetings will be held on Tuesday, August 23, 8:30 am - 11:30 am in the Tampa room at the Orlando World Center Marriott.  Go to Florida DWC regulator (www.wci360.com/conference/ask-the-regulators) to schedule an appointment and identify the issues you would like to discuss with the Division.  This will ensure that the Division has the appropriate staff available to answer your questions.  An email will be sent to you confirming the time.

EDI On Demand:  These EDI Triage & Training sessions are available upon email request and will provide access to Division staff on any EDI related issues and processes.  Please email Lisel.Laslie@myfloridacfo.com to request a session.  The meetings will be held on Tuesday, August 23, at the Orlando World Center Marriott.  An email will be sent to you confirming your meeting time.

Contact Brittany O'Neil, Policy Coordinator, Division of Workers' Compensation, 850-413-1927, email Brittany.oneil@myfloridacfo.com

SDTF Assessment Rate Set

In compliance with Section 440.51(1), F.S., the Florida Department of Financial Services, Division of Workers' Compensation issued an Informational Bulletin DFS-02-2016.  The Bulletin advises insurers, self-insurers and other related stakeholders that Florida's Chief Financial Officer has issued an "Order Setting Assessment Rate for Workers' Compensation Administration Trust Fund (WCATF) for Calendar Year 2017".  The Order (Case No. 190815-16-WC) set the assessment rate for the WCATF with respect to calendar year 2017.  The set rate has been reduced to 1.25%.

The informational bulletin and (Assessment Rate) Orders are available on the Division's web site: http://www.myfloridacfo.com/Division/WC/bulletins.htm

The rates are available at: http://www.myfloridacfo.com/division/wc/rates.htm

To learn more about these issues and other Workers' Compensation information click here: http://www.myfloridacfo.com/Division/WC/