CHARLESTON, W.Va. — West Virginia employers are going to see a reduction in workers’ compensation premiums soon marking the 13th straight year rates have decreased, Gov. Jim Justice announced Friday.
The reduction, expected to be about $21 million, will come as a result of the National Council on Compensation Insurance (NCCI) recently filing for a 10.3 percent reduction in workers’ comp lost cost rates with the state Insurance Commission.
“This rate reduction will really help businesses in our state,” Justice said in a news release. “When you look at the strides we’ve made over the past 13 years to lower workers’ compensation premiums, it is impressive how far we’ve come. This is great news for employers and will translate into more jobs for West Virginians.”
Workers’ comp rates began to go down in West Virginia not long after the state got out of the workers’ comp business. The legislature privatized the operation allowing for the creation of BrickStreet Insurance, which is now one of the nation’s top workers’ comp companies. The state also continues to pay down its old workers’ comp debt.
State Revenue Secretary Dave Hardy called the privatization a great success story.
“We are making progress in our workers’ compensation market and we appreciate this good news from the National Council on Compensation Insurance. We are definitely on the right path,” Hardy said.
Since privatization, workers’ comp rate decreases have totaled more than 72 percent. The most recent reduction will go into effect Nov. 1.