Charleston, WV – Gov. Jim Justice recently announced that the National Council on Compensation Insurance has filed for another 13% average decrease in base rates for Workers Compensation Insurance in West Virginia effective November 1, 2018.
“This is great news for West Virginia and our business community,” Gov. Justice said. “This is the 14th straight decrease we’ve had since the state moved to privatization in 2006 and it represents not only a $25 million aggregate premium reduction on this line of insurance but also significant savings for state businesses that will allow them to use that money to reinvest in our economy.”
According to State Insurance Commissioner Allan McVey, the decrease applies to all standard classifications. Also, the Assigned Risk base rates will decrease an average of 10.3%. These 14 consecutive decreases also amount to a cumulative decrease of 75.8% and aggregate premium savings of $398 million.
“In addition to these savings the Old Fund deficit surcharge of 9% terminates as of January 1, 2019,” Commissioner McVey said. “When we started privatization in 2006 West Virginia had an unfunded liability of approximately $3.5 billion in this fund. We now have substantially gotten to the point of seeing the light at the end of the tunnel as claims at the point we started were at approximately 45,000 and as of July 2018 they are at about 11,700 and continue to reduce. This is what is pushing the rate reductions.
“I believe the safety programs instituted by a great number of our employers in the state with assistance from our carriers has helped us get these results,” Commissioner McVey added. “I feel an investment up front to do this has limited claims along with the fact no one wants to be injured or get sick as the result of a condition in the workplace. Also, the employees who are injured or getting sick are being well taken care of by the carriers and third-party administrators because we are also seeing fewer complaints and protests. In 2005 the Office of Judges and Board had 18,975 protests presented to them. This year they have had 1,731 with a current caseload of 2,074. The Board of Review has only had 301 appeals.”
Gov. Justice said the news “is a wonderful success story” for the state.
“This is yet another example that West Virginia moving in the right direction and will truly assist us as we keep growing.”
Source: WV Governor’s Office