Florida, like most states, has seen more than a decade of annual decreases in workers’ compensation average rates. But costs may no longer be falling, thanks in part to higher wages and escalating medical payments, a new study from the Workers Compensation Research Institute shows.
After declining significantly during the COVID-19 pandemic then stabilizing for three years after that, medical payments per claim in Florida rose 4% in 2025 for claims with more than seven days of lost work time (at 12 months maturity), the Cambridge, Massachusetts-based research group reported.
The increase was likely due to a new fee schedule for non-hospital medical services. After years of inaction by state lawmakers, reimbursement for physicians was raised to 175% of Medicare’s payment level, starting in early 2025.
“The significant increases in fee schedule rates will likely result in price growth,” the WCRI CompScope Benchmarks analysis noted.
Indemnity or wage-replacement benefits per claim also rose by about 4% last year, following a 12% increase in 2023 (for claims with more than seven days of lost time, at 12 months maturity). Wage growth was the main driver of the increase, as the average weekly wage of injured Florida workers climbed almost 4% from 2023 to 2025, the study found. The average indemnity benefit per claim reached almost $22,000.
Overall, the total costs per claim in Florida grew by 5% in 2025. That’s not surprising, industry experts have said, given the elevated U.S. rate of inflation over the past several years. The consumer price inflation rate is expected to rise again, to as much as 6% for the second quarter of this year, according to a branch of the Federal Reserve and recent news reports.
Florida’s comp cost increases are not out of line with many other states, the WCRI reported. The state ranked in the middle of 18 study states, just above the median cost. Louisiana was an outlier, with total costs per claim almost a third higher than Florida’s and the median cost.
Workers’ comp medical costs in Florida could see some relief in coming months, thanks to a recent appeals court ruling. Florida’s 1st District Court of Appeals in February issued a landmark decision that struck down previous regulations and disallowed physician dispensing of medication. It’s a ruling that employers and carriers had fought for years, arguing that physician-sold meds are often more expensive and are prescribed more often and for longer durations. Read more here.
“It could have a big impact on costs. It could,” said Jerry Fogel, a consultant with Imagine Clinical who has worked for years for an end to doctor dispensing.
The appellees in that case, including physician groups, did not petition the state Supreme Court to review, but may try next year to ask the Florida Legislature to modify statutes to explicitly allow physician dispensing, Fogel said. Some providers have already turned to mail-order pharmacies as a way around the court ruling, he noted.
The WCRI study gave other insights into Florida’s compensation costs. Legal expenses are higher than the median of the study states. Claimants’ attorneys are involved in 41% of claims, compared to the median number of 31%. Defense attorneys were involved in 45% of claims, much higher than the typical state. Defense attorney fees per claim in 2025 topped $7,600, slightly above the $6,890 median amount, the study showed.
The study can be accessed here.
Related: California Workers’ Comp Claim Costs Continue to Rise
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