Decline in North Carolina Workers’ Compensation Filings Drives Insurers to Seek Lower Rates
It’s no secret that North Carolina workers’ compensation claims have decreased precipitously over the past three years. In 2006, claims dropped 2%. In 2007, claims dropped another 2%. And in 2008, claims dropped a whopping 4.4% — on top of those declines. This rapid drop coupled with sobering projections put out by the North Carolina Rate Bureau has inspired insurance companies to request a 9.6% decrease in North Carolina workers’ compensation premiums. Employers in the state and government overseers of benefits programs alike appear pleased with this request. One survey estimates that in-state businesses could save nearly $120 million if the Department of Insurance allows the decrease. The burden of setting the final rate falls to State Commissioner Wayne Goodwin. A spokesperson for the DOI applauded the request, saying “that’s a good thing for businesses in North Carolina.”
An NC state representative, Sherry Melton, also approved. “There isn’t much bad to say,” said Rep. Melton, about a decrease in North Carolina’s workers’ compensation rates. Notwithstanding, she argued that the system could be further refined to bring “costs and rates down even lower.”
North Carolina employers currently pay out over $1.4 billion annually in premiums, and both workers and employers alike have complained in the past that these excessively high premiums stunt growth and lead to less effective and efficient care for injured workers. The insurance rate request will not impact all employers in the state. State and Federal government employees, for instance, won’t be impacted, nor will about 25% of small and medium sized businesses that self insure.
Charlotte Observer, Workers’ comp rate may fall, September 3, 2009
WRAL, Workers comp insurance rates could drop, September 2, 2009
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