Salem, OR (WorkersCompensation.com) – New Jersey, New York, Vermont, California and Hawaii have the most expensive workers’ compensation rates in the nation, according to a biannual report that ranks all states by premium rates. The least pricey states were North Dakota, Arkansas, Indiana, West Virginia and Utah. The report from the Oregon Department of Consumer and Business Services released its report on Friday.
New Jersey had a $2.52 index rate, equating to 175 percent of the median state. In 2018, that state ranked third with an index rate of $2.84. New York had a $2.23 index rate that equates to 155 percent of the median. In 2018, New York ranked as the most expensive state with an index rate of $3.08, which totaled 181 percent of the median. ,
North Dakota, ranked as the least expensive rates, garnered a low .67 index rate, which totaled a mere 47 percent of the median rate. Arkansas followed with a .72 index rate at 50 percent of the median.
Oregon was ranked among the states with lower premiums, ranking 45th of the 51 jurisdictions. The median value for 2020 was $1.44, which was lower than $1.70 median rate in 2018 at the time of the last study. The 15.3 percent reduction is the largest decrease since 2000. Oregon’s median value is $1.00 per $100 of payroll dollars, equating to 69 percent of the national median value. This is slightly less than the 2018 rates of $1.15 per $100 of payroll dollars.
Overall, Oregon ranked seventh least expensive in workers compensation premiums, a slight drop from sixth place in 2018. Costs are slated to drop an additional 5.6 percent this year, continuing the 8 year trend in premium reductions.
In the last 10 years, the total premiums written in Oregon have increased from $766.7 per million to $900.4 per million in 2019. The premium assessment rate has increased from 6.4 percent in 2011 to 8.4 percent in 2020, and 9.0 percent for 2021. The workers benefit fund assessment rate has decreased the last two years from 2.8 percent to 2.2 percent for 2020 and 2021.
Oregon’s insurer type in 2019 was comprised of 33.7 percent of private insurers, 12.1 percent self-employed insurers. The State Accident Insurance Fund Corporation (SAIF), a non-profit state-chartered workers’ compensation insurance company, makes up 54.2 percent of insurers in the state.
“Premium rate indices are calculated based on data from 51 jurisdictions, for rates in effect as of Jan. 1, 2020,” the report says. “The study is based on methods that put states’ workers’ compensation rates on a comparable basis using a constant set of risk classifications for each state. This study used classification codes from the National Council on Compensation Insurance (NCCI).”
The full report is available on the DCBS website.