In the latest example of workers’ comp success stories occurring in almost every state (except California), Florida is likely to cut employers’ workers’ comp premium rates in 2027.

The National Council on Compensation Insurance (NCCI), which formally advises most states on premium rates, proposed a 7.4% decrease in employers’ comp costs. If Florida’s Insurance Commissioner, Mike Yaworsky, approves the proposal, the cut will take effect on January 1, 2027.

The NCCI cites a downtick in lost-time claim frequency as a major factor in its assessment. The proposed premium decrease is occurring despite the rising fee schedule rates recently enacted for Florida providers treating injured workers. Florida (along with other states) clearly demonstrates that adequately reimbursing doctors is not a barrier to controlling employers’ workers’ comp costs.

The decrease aligns with a nationwide trend of declining comp costs, as insurers continue to earn consistent profits from comp policies. The NCCI, independent rating bureaus, and state authorities have (correctly) responded to market conditions by easing the burden on employers.

…but not in California.

A 6.6% premium increase took effect for California employers yesterday, following a push by the Workers’ Compensation Insurance Rating Bureau (WCIRB). It’s the second consecutive increase for the Golden State (an 8.7% increase took effect in 2025).

The NCCI makes cogent and logical arguments for decreasing Florida’s employers’ workers’ comp premiums. However, California’s WCIRB and Governor Newsom have consistently failed to adequately substantiate the almost 20% increase in California premiums.

Florida: Taking Less From Employers, Giving More to Doctors

If enacted, Florida’s proposed premium rate decrease will be the tenth in a row; last year, the Insurance Commissioner dropped rates by 6.9%.

At the same time, Florida gave providers a major bump in reimbursement rates for workers’ comp in 2025. Like other states, Florida apparently sees no contradiction in incentivizing providers while simultaneously unshackling businesses from excessive premiums.

As the most recent premium data below from the Oregon Department of Consumer and Business Services show, Florida’s premiums are relatively low, ranking in 30th place nationally in 2024 (and that’s before the 2025 and 2026 decreases). In that same year, California premiums were the fourth-highest nationally.

As for fee schedule rates, data from a 2025 Workers’ Compensation Research Institute report show that Florida, even as it slashed premium rates, paid providers significantly more for injured workers’ care. Florida paid providers 87% above Medicare rates, while California paid only 51% above Medicare.

In 2026, California comp premiums’ upward trajectory continues, while provider reimbursement rates lag behind those in most other states. That’s largely because care accounts for a shockingly low percentage of overall claim costs in California; 52 cents flows to administrative and bureaucratic expenses for every dollar’s worth of treatment or benefits workers receive.

While state after state boosts providers and gives employers a break, California employers are paying more and getting less. At some point, outrage is warranted, and it should be directed squarely at the state authorities whose job it is to ensure a functioning system.

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