compensation system . The News Service of Florida reported last week that a state report showed nearly 12,000 workers ’ compensation claims related to COVID-19 had been filed as of July 31 --- with more than 43 percent of what are known as “ indemnity ” claims rejected by insurers .
NCCI said the potential impact of COVID-19 on the workers ’ compensation system “ is in the very beginning stages of being understood ; therefore , the data underlying this filing does not include claims from COVID-19 . Due to the lack of this COVID-19- related ratemaking data and the current level of uncertainty , NCCI has not yet assessed the potential impact on future rate levels .”
But the organization said COVID-19 could end up having offsetting effects on the system . For example , the system could see an increase in claims that warrant compensation for people in “ frontline COVID-19-related occupations .” But NCCI said other claims could be reduced because more people are working remotely . from civil lawsuits . But disputes about workers ’ benefits can often lead to legal fights , which is when attorney fees come into play .
The business groups have argued that the 2016 Supreme Court ruling , in a case known as Castellanos v . Next Door Company , will drive up costs in the system because of attorney fees .
NCCI said in the summary of the rate filing that costs related to attorney fees have increased , but they have been offset by other favorable trends in the industry .
“ The combination of two counteracting impacts has contributed to the current state of the Florida WC system ,” the NCCI summary said . “ To date , the especially favorable WC industry results observed across the country have more than offset the observed cost increases associated with the Castellanos decision .”
Business groups in Tallahassee have urged the Legislature in recent years to make changes to the workers ’ compensation system after a Florida Supreme Court ruling that invalidated a law that placed strict limits on fees that could be paid to attorneys for injured workers . Workers ’ compensation is designed to be a self-executing system that provides health benefits and lost wages to injured workers while protecting employers
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