California Workers Compensation Rates 2019

Prices are on the Decline for California Workers Compensation Rates 2019 

California Workers Compensation Rates 2019 are going to cost the business community less than in 2018. The average rate of $1.63 per $100 in payroll by Jan. 1 will be approximately 72 percent lower than when rates peaked in 2015. In 2015 the recommended rate was $2.81 per $100 in payroll.  According to California Insurance Commissioner Dave Jones, “Cost savings in the workers’ compensation system have helped insurers and employers deserve to share in the cost savings through lower premiums,” This is the lowest rates for workers compensation insurance have been in the state of California in five years.

Iconic Golden Gate Bridge, atracts businesses to San Francisco. Those businesses will be paying less for California Workers Compensation Rates 2019.

 

What is contributing to California Workers Compensation Rates 2019

California has some of the highest rates for workers compensation insurance in the country the California Workers Compensation Bureau WCIRB has pointed to a high frequency of permanent disability claims as a reason for higher costs. Also, California has a higher than average cost of handling claims and delivering benefits which also contribute to the state having higher rates for workers compensation. Businesses in the state of California spent $16.2 billion on workers’ compensation last year.

California Workers Compensation Rates 2019 are continuing to decrease for the fifth straight year. These decreases are primarily because of reforms made to fight the opioid epidemic, low inflation for medical and pharmaceutical costs, and increased fraud investigations.

The amount paid out for opioids in 2018 was nearly a fifth of what it was in 2013, dropping from $15,687 to $3,204 per 100 claims, according to WCIRB, the California Workers Compensation Insurance Rating Bureau. A large part of the reason for the decrease in what the workers compensation system paid out for opioid prescriptions is because California enacted a program called CURES (Controlled Substance Utilization Review and Evaluation System). CURES is a database of Schedule II, III and IV controlled substance prescriptions dispensed in California serving the public health, regulatory oversight agencies, and law enforcement.The CURES Program requires dispensing pharmacies, clinics, or other dispensers of Schedule II through IV controlled substances to provide specified dispensing information to the Department of Justice on a weekly basis in a format approved and accepted by the DOJ. This has significantly decreased the amount of opioid abuse throughout the state and that has benefited the workers compensation system.

Iconic Hollywood, California

 

What can Business Owners do to continue saving on California Workers Compensation Rates 2019

California Workers Compensation Rates 2019 are decreasing for the fifth straight year. This represents a decrease of 72 percent over this time period, but businesses in California still pay more for workers comp coverage than nearly all states throughout the country. Because of these high rates, it is important to maximize savings in any way possible. Here are five ways business owners can alter the way they do business in order to save on commercial insurance.

Make sure your business is classified properly

Far too many businesses are classified improperly for purposes of workers compensation insurance. This is attributed to a number of reasons, but many times it is because a business owner rushes through the quoting process when purchasing Workmans Comp Insurance California. An insurance agent can only act upon the information they are given by the business owner when they are shopping for the best coverage to fit a business owners needs. If the business owner does not explain many intricacies of their business, the business may be classified improperly and pay more or less for coverage throughout the year. This mistake usually gets cleared during the end of term audit, but it can cause a business to owe additional premium. Even if the business over pays and is issued a refund, it means the business has tied up valuable cash flow in unnecessary premium payments throughout the year. These unnecessary payments could have been used on other more important business expenses.

Implement a Safety Program

A Safety Program can help limit the cost of workers compensation insurance in California because it will limit both the frequency and severity of claims. When you business has less claims and the claims you do have are small, the insurance carrier is more likely to offer your business a favorable rate for premium.

Start the Safety Program the day employees are hired

Safety Programs should be a part of your company culture. This should not start after a month in which a few accidents occur. Safety should be part of the training program from the moment an employee starts on the job. The more the business (especially the key employees) talk about safety, the more likely that message is to fester throughout the organization.

Add a return to work program to your safety policy

A Return to Work Program can significantly impact your experience modification rating in a positive way. When an employee is hurt and not able to work they are much more likely to develop new habits outside of their daily work routine. The longer they stay off the job, the more likely the injured employee is to become long term unemployed. This can have a drastic impact on the experience modification rating of the business. Businesses that are able to get an employee back on the job, even in a limited capacity, are more likely to have those employees return to permanent work.

Communicate with your Insurance Carrier and Healthcare provider

Communication is key when it comes to navigating the workers compensation system. This is true for the business owner, the injured worker, the insurance agent as well as the underwriter who represents the insurance carrier. The business owner has a responsibility to help the injured worker navigate the workers compensation system and get the care they deserve while not able to work. It is important to keep your agent in the loop throughout this process even though it is the responsibility of the carrier to administer the program. Keeping the agent in the loop can help in the unfortunate event that the carrier is not living up to their end of the bargain. If the agent knows about this process throughout, they can help hold the carrier accountable.

 

 

Workers Compensation Insurance Rates Tennessee 2019

Steep Decline in Workers Compensation Insurance Rates Tennessee 2019

For the sixth year in a row, the Tennessee Business Community will benefit from a decrease in the amount they pay for workers compensation insurance premium. Earlier this month, the Tennessee Department of Commerce and Insurance (TDC&I) announced an approval of a 19% decrease in pure premium rates for Workers Compensation Insurance Rates Tennessee 2019. This reduction is in addition to previous reductions of 12.6% and 12.8% that were approved in 2017 and 2018. This current reduction will go in to effect on the first of March 2019.

Workers Compensation Insurance Rates Tennessee 2019

What Caused a Reduction in Workers Compensation Insurance Rates Tennessee 2019?

The main reasons for a reduction in Workers Compensation Insurance Rates Tennessee 2019 is because employers are seeing fewer significant workplace injuries, a decrease in lost-time frequency, and the overall average cost per case as well as the medical cost per case have decreased.

Johnny CashMany within the industry in the state of Tennessee are complimenting the reforms made to the workers’ compensation system in 2013. These reforms especially contributed to a decrease in lost-time frequency. This means injured workers are spending less time off the job and are returning to full-time work more quickly and more often than in years past. In addition to a decrease in lost-time, both indemnity average cost per case and medical average cost per case have remained “relatively stable” according to representatives from the National Council on Compensation Insurance (NCCI).

Because the insurance carriers have benefited from less costs some of the savings are being redistributed to the business community in the state of Tennessee. These savings are being redistributed in the form of lower Tennessee Workers Compensation Insurance Premiums. Since 2013, Tennessee has seen a reduction of 48% on average for workers compensation premium over the past five years.

Before the most recent reductions in premium, Tennessee was the 28th most affordable state in the country for workers comp coverage according to a biennial study done every two years by the state of Oregon. When this study is released again in March of 2019 Tennessee can expect to be much lower in the rankings.

 

Smokey Mountains Panorama Workers Compensation Insurance Rates Tennessee 2019

Colorado Workers Compensation Premium Rates

Business Owners will soon Celebrate Because of a Decrease in Colorado Workers Compensation Premium Rates 

Colorado Workers Compensation Premium Rates will be decreasing in 2019 by an average rate of more than 10%.  This impact will go in to effect on January 1, 2019 and will be the fourth straight year business owners have enjoyed a decrease in the amount they pay for workers compensation insurance premiums.

Views like this High Mountain Lake contribute to the decrease in Colorado Workers Compensation Premium Rates

The Colorado Division of Insurance previously approved a recommended decrease of 16.7% based on recommendations from the National Council on Compensation Insurance (NCCI).  The Colorado State Provider, Pinnacol, said its rate change is different because it reflects longer-term underlying loss and expense trends.  They are moving forward with a smaller annual decrease in order to minimize volatility in the short term and create stability for business owners over a longer period of time.

As of 2017 rates in Colorado were 19 % lower than the national average. After two years of increased savings, the state system will more than likely rank even better in 2019.  Oregon Workers Compensation Premium Rate Ranking will come out in March of 2019.  This is a study that comes out every two years. The previous rankings was listed in 2017 for the rankings from 2016.  Next March the rankings will again be listed for rates form 2018.

What Contributed to the Colorado Workers Compensation Premium Rates Decreasing for the Fourth Straight Year

The three main aspects that contributed to Colorado Workers Compensation Premium Rates declining are increased cost efficiency, favorable claims trends driven by safer workplaces and a strong Colorado economy. Pinnacoll did not move forward with the full amount of decrease recommended by the Division of Insurance and NCCI because they plan to keep the market stable and give additional savings back to its members via a dividend.  Not giving the full recommended decrease may allow Pinnacol to continue to offer a moderate decrease continually and avoid a large decrease one year followed by an increase the following year to stabilize the market. Leaders at Pinnacol believe this moderate decrease will allow the business to compete in the workers compensation system and keep rates as low as possible for all Colorado businesses.

How is Colorados’ Workers Compensation System Unique?

Colorado is not a partner with the National Council on Compensation Insurance.  Thirty-two states use NCCI to determine recommended pure premium rates for workers compensation. Four states are Monopolistic States meaning they have their own workers compensation system that does not recognize other staets when a business enters that state for any reason. The rest of the states wither have their own state provider or the use a public private partnership.  Colorado uses a public private partnership to administer the provider of last resort within the state workers compensation system. This company is call Pinnacol.  Established more than 100 years ago, Pinnacol was formed to provide some stable workers compensation coverage to businesses within the state no matter the size or anticipated risk of the business. Currently Pinnacol represents approximately 56,000 customers.