Texas employers are seeing a major reduction in workers’ compensation insurance premiums, an insurance trade group reports. The Insurance Council of Texas (ICT) says the drop is the result of reforms in House Bill 7, passed in 2005, and earlier legislation that improved the efficiency of the Texas workers’ comp system.
Since House Bill 7 was passed premium costs for workers’ comp policies declined 49 percent, according to information from the Texas Department of Insurance. The average premium was $1.38 per $100 dollars of payroll in 2010, compared to $2.70 per $100 of payroll in 2004.
A new study entitled “Premium Rate Ranking Summary” published by the Oregon Department of Consumer and Business Services, 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 workers’ comp 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’ comp agency.
Topics Texas Workers' Compensation
Was this article valuable?
Here are more articles you may enjoy.
AWS Outage a ‘Moderate Incident,’ Another Near Miss for Insurance Industry 
AIG to Acquire Renewal Rights of Everest’s Retail Commercial Business Worth $2B 
The Hartford Q3 Net Income Up 41% 
Alaska Airlines Vows IT Upgrades After Outage Forces 400 Flight Cancellations From This Issue
