Insurance
Home›Insurance›Property Insurance›Florida faces proposed 7.4% cut to workers’ comp rates…
Florida faces proposed 7.4% cut to workers’ comp rates starting in 2027
The National Council on Compensation Insurance cited a continued decline in lost-time claim frequency, even as it included a 0.06% increase in maximum reimbursement rates for certain non-hospital providers.
Florida employers in the voluntary workers’ compensation market could see another rate reduction, after the state’s rating organization advanced a proposal for an average 7.4% cut effective January 1, 2027, Insurance Business reports. The filing goes to Florida’s Office of Insurance Regulation for a public hearing before Commissioner Mike Yaworsky issues a final order, a decision path that has delivered cuts in each of the past nine years.
The proposed relief is tied mainly to continued improvement in claim severity patterns, with the filing pointing to fewer “lost-time claims,” defined as cases where an employee misses more than Florida’s statutory eight-day threshold. NCCI built the recommendation using premium and loss data from policy years 2023 and 2024, and said wage growth has also played a role in the underlying economics.
Within the filing, NCCI included a small counterbalancing change, raising maximum reimbursement rates for physicians and other non-hospital providers by 0.06%. It also linked lower-than-anticipated medical loss ratio to stronger wage trends, noting nationwide payroll rose 4.8% between 2024 and 2025 while employment growth increased 0.5%, with hiring boosted largely by healthcare.
If approved, the 7.4% reduction would extend Florida’s near decade-long run of workers’ comp rate decreases. The most recent cut signed by Yaworsky in 2025 for policies starting January 1, 2026, marked the ninth consecutive year of decreases, and the commissioner said it would translate into lower operating costs for businesses.