In my November 2008 update I spoke about the Murray v. Mariner Health Florida Supreme Court decision (October 2008) and the anticipated impact this case would have on the Florida Workers Compensation system. In summary, the Supreme Courts decision eliminates the statutory caps on attorney fees that were enacted as a result of the 2003 reforms and will enable claimant attorneys to collect higher fees for their services.
It would appear that the Florida legislature has responded swiftly in response to the Supreme Court decision in the form of House Bill 903. Representative Anitere Flores (R-Miami) has filed HB 903 in the Florida House of Representatives. The bill essentially removes the requirement that fees be “reasonable” and mandates that the fees may not exceed the statutory percentages.
As a direct result of the Murray case, Florida Insurance Commissioner Kevin McCarty Issued a final order in early February approving a 6.4 percent increase in workers compensation insurance rates. The approved increase applies to new and renewal policies and will become effective April 1, 2009. This is the first rate increase since the 2003 reforms that have brought rate decreases in excess of 60 percent to Florida employers.
The National Council on Compensation Insurance (NCCI) had originally recommended an 8.9 percent rate increase in their rate filing of 11/14/08. It is believed that the impact of the Murray case will not be fully known for about 2 years as it will not only affect cases filed since October 2008, it will also affect open cases from prior to October 2008 that have not been settled. We will keep you posted on HB 903 as well as any future rate increases recommended or enacted as a result of the Murray case.
