Public employers could see workers’ compensation premium rate decrease
The Bureau of Workers’ Compensation (BWC) recommended a reduction of next year’s workers’ compensation premium rates for public employers (i.e., school districts, cities and local governmental entities). If approved, this reduction could result in an average 12 percent premium rate decrease. Ultimately, the premium rate decrease could save public employers an estimated $21 million.
In its announcement, the BWC explained that this premium rate reduction is possible because of reduced workers’ compensation claims and lower medical inflation costs. The BWC’s announcement also explained that the premium rate reduction represents a change in “the statewide average of the collectible rates for public employer taxing districts.” Although the BWC stated that the average premium rate decrease will be 12 percent, a public employer’s actual premium rate decrease will depend on, among other things, its classification, recent claims history and program participation.
The BWC Board of Directors will meet on August 24, 2018 to vote on the proposal. If passed, the overall premium rate reduction would affect about 3,700 public employers and would take effect on January 1, 2019.