Florida Workers’ Compensation Rates to See Minimal Decrease in 2025
In a move that marks the smallest reduction in workers’ compensation rates in recent years, Florida employers can expect just a 1% decrease in overall rates within the voluntary market, as approved by the Florida Office of Insurance Regulation. This decision stems from a recommendation made by the National Council on Compensation Insurance (NCCI) in August. Notably, employers engaged in maritime or federal work will benefit from a more substantial average rate decrease of 13.9%.
Set to take effect on January 1 for new and renewal policies, the adjusted rates reflect a cumulative drop of almost 78% since 2003, following significant legislative reforms that aimed to reduce costs for businesses. This latest change is the eighth consecutive year of workers’ compensation rate reductions in Florida.
The modest rate cut is largely attributed to the implementation of Florida Senate Bill 362, which raised reimbursement rates for worker-treating physicians for the first time in years, increasing payments to 175% of Medicare levels. This adjustment is viewed as essential for the healthcare providers treating injured workers. Without this change, the overall decrease would have been approximately 6.4%.
While the reduced rates may provide some relief to employers, it has raised concerns within the industry. A representative from the Florida Roofing and Sheet Metal Contractors Association cautioned that ongoing significant rate cuts could lead to complacency regarding construction injuries, many of which often go unreported.
As employers prepare for these new rates, the NCCI continues to monitor trends, noting a decrease in lost-time claim frequency across the state. The NCCI also monitors rates and loss costs across 38 states, providing essential insights for businesses navigating the evolving landscape of workers’ compensation.
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