The National Council on Compensation Insurance (NCCI) filed for a significant average rate decrease for West Virginia workers’ compensation rates which would be effective November 1, 2018.
If approved by Insurance Commissioner Allen McVey, the recommended 13% decrease will be the 14th straight decrease since the state passed legislation in 2006 to take the state’s workers’ comp system private.
Governor Jim Justice said the rate decrease will save West Virginia employers $25 million and employers will be able to reinvest that money in the state’s economy. The cumulative reduction of 75.8% after the 14 different decreases amounts to $398 in aggregate premium savings for West Virginia employers.
The Old Fund deficit surcharge of 9% will terminate as of January 1, 2019. In 2006 the state had an unfunded liability of $3.5 billion, and Commissioner McVey says they have “gotten to the point of seeing the light at the end of the tunnel”. When they started they had 45,000 claims. They are now around 11,700 and McVey says they continue to decrease which is pushing these rate reductions.
McVey also mentioned safety programs initiated by many employers in the state has helped generate these results. He said in 2005 the Office of Judges and Board had 18,975 protests, and this year they have 1,731 with a caseload of 2,074. The Board of Review had had 301 appeals.
Read more from Office of the Governor and WorkCompCentral.
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