West Virginia employers will see a projected $21 million reduction in workers’ compensation premiums in the coming year, according to a recent statement from Gov. Jim Justice.
The National Council on Compensation Insurance (NCCI) has filed a proposed reduction of 10.3 percent in workers’ compensation loss cost rates with the Offices of the West Virginia Insurance Commissioner – the 13th reduction in 13 years.
Justice added that employers have also seen a savings of more than $373 million since the state’s workers’ comp program was privatized in 2006.
“This rate reduction will really help businesses in our state,” said Justice.
The loss cost rate is effective November 1, 2017.
The statement says this is the 13th consecutive reduction since privatization and accounts for a cumulative decrease of 72.2 percent from pre-reform levels. Additionally, a proposed 8.7 percent rate decrease for the assigned risk market also has been filed by NCCI.
Secretary of Revenue Dave Hardy said the privatization of workers compensation insurance in West Virginia is working.
“We are making progress in our workers’ compensation market and we appreciate this good news from the National Council on Compensation Insurance,” Hardy said.
Insurance Commissioner Allan McVey agreed.
“I believe workplaces are safer and claims that do occur are being handled very well,” McVey said. “The system has produced lower costs for employers while protecting their employees resulting in more productive work environments.”
Source: West Virginia Department of Revenue