The National Council on Compensation Insurance today recommended a 15% rate increase in Florida due to the state Supreme Court's decision in April overturning the statutory limit on attorney fees.

NCCI is recommending an additional 1.8% increase due to passage by the legislature of Senate Bill 1402, which ratified updates to the Florida Workers' Compensation Health Care Provider Reimbursement Manual.

"The combined impact of the two components is 17.1% or $623 million," NCCI said in a press release.

If approved by the Office of Insurance Regulation, the rate increase would take effect on Aug. 1 and will apply to all policies in effect on that date on a pro-rata bases through the remainder of the term of the policies.

In Castellanos v. Next Door, the Supreme Court on April 28 found Florida Statutes Section 440.34 did not comport with due process because it creates an "irrebuttable statutory presumption" that a fee calculated in accordance with its provisions is "reasonable," even when such fee is "clearly inadequate" to compensate an attorney for his work.

WorkCompCentral will post a thorough report on the NCCI filing Tuesday.