Today’s post was shared by WC CompNewsNetwork and comes from www.workerscompensation.com
The biennial study on workers’ compensation premium rates issued by the Oregon Department of Consumer and Business Services (DCBS) was released last week, and, as always, it is worthy of a review by those of us entrenched within the industry. The study ranks all 50 states and Washington, D.C., based on rates that were in effect Jan. 1, 2014. This year’s results are indicative that major reforms don’t always gain the results that were intended or marketed to the industry; and while it may not accurately reflect legislative action of the past, it may be a better predictor of major reforms to come.
The study shows that despite its extensive reforms designed to lower costs, California now has the most expensive rates in the nation, followed by Connecticut. North Dakota had the least expensive rates. Oregon researchers also compared each state’s rates to the national median (midpoint) rate of $1.85 per $100 of payroll.
According to Mike Manley, one of the co-authors of the survey, “We continue to see a trend in the distribution of state index rates in our study clustering in the middle of the distribution. A record 21 states are within plus or minus 10 percent of the 2014 study median. This makes the rank values more volatile from one study to the next. I would recommend that states look also to their ‘Percent of study median’ figure for comparisons over time.”
Because states have various mixes of industries, the study calculates…