CHARLESTON, W.Va. — West Virginia has received a reduction in workers’ compensation loss cost rates from the National Council on Compensation Insurance (NCCI).
Governor Earl Ray Tomblin made the announcement Monday.
NCCI filed a proposed 8.8 percent overall decrease with the West Virginia Insurance Commissioner which will result in $36 million of projected premium reductions for West Virginia employers. In addition, NCCI filed an 8.5 percent rate decrease in the residual market as part of the filing.
This new loss cost rate, which is effective November 1,
serves as the ninth consecutive decrease in loss costs since privatization and accounts for a cumulative decrease of 48.1 percent from pre-reform levels.
This proposed loss cost reduction follows the reduction in the workers’ compensation regulatory surcharge from 5.5 percent to 5 percent effective January 1, 2013, which will result in further cost savings to West Virginia employers.
Loss cost is the estimated amount necessary to pay all medical and indemnity costs associated with workers’ compensation claims. All workers’ compensation insurance carriers use loss cost to calculate rates.