West Virginia Approves Workers’ Compensation Rate Cut of 6%

West Virginia Insurance Commissioner Jane L. Cline has approved a loss cost filing by the state’s workers’ compensation insurance companies that will result in an overall six percent decrease.

She said more than 80 percent of the state’s employers should see their premiums go down or remain the same as a result of the decision.

Cline said that including these newly approved decreases, the loss cost in West Virginia has decreased 40 percent since the privatization of the workers compensation market on Jan. 1, 2006.

The new loss cost will become effective on Nov. 1.

Loss cost is the estimated amount insurers need to pay all medical and indemnity costs associated with workers compensation claims. Insurers use this as a base rate and then add their own administrative and profit figures to arrive at final prices.

Because a loss cost is developed for each individual classification, some employers could see their own cost go up while others will enjoy varying decreases.

According to Cline, the overall market will see a decrease totaling of six percent. Out of 583 classifications, 346 classifications will receive decreases, 208 classifications will receive increases and 29 classifications will see no change.

The largest decrease will be for businesses in the building material yard, local managers and drivers classification whose loss cost plummeted 20.2 percent.

Other notable decreases are for employers in the mining industry, where surface mine loss cost decreased 16.1 percent and underground mining decreased 15.7 percent.

Of the classifications that increased, the largest occurred to salespersons and collectors. That classification rating rose 21.4 percent, resulting in a $.09, per $100 of payroll, increase.

The National Council on Compensation Insurance, Inc. prepared the loss cost filing on behalf of all insurers.

Topics Workers' Compensation Talent Virginia West Virginia