Texas employers are seeing a major reduction in workers’ compensation insurance premiums, an insurance trade group reports.
The Insurance Council of Texas (ICT) says reforms in House Bill 7, passed in 2005, and earlier legislation have improved the efficiency of the Texas workers’ compensation system.
The Texas Department of Insurance reports premiums for workers’ compensation policies have seen a 49 percent decline in rates since House Bill 7 was passed.
The average premium was $1.38 per $100 dollars of payroll in 2010 as compared to $2.70 per $100 of payroll in 2004.
“HB 7, which was passed in 2005, was landmark legislation for the workers compensation insurance system,” said Steve Nichols, ICT workers’ compensation manager. “The legislation directly addressed the problems the workers’ compensation system faced and the results have been an overall reduction in rates, costs, disputes and claims.”
The good news comes from a new study entitled “Premium Rate Ranking Summary” published by the Oregon Department of Consumer and Business Services.
The study listed Texas as the state with the most improvement in premium costs since 2010. Texas’ workers compensation premiums fell from a nationwide high ranking of 12 down to 38.
HB 7 overhauled the Texas workers’ compensation system by providing for the use of healthcare networks, strengthening medical treatment guidelines, placing a greater emphasis on return-to-work and restructuring the workers’ compensation agency.
Source: The Insurance Council of Texas