Charleston, WV – Gov. Earl Ray Tomblin recently announced West Virginia employers will see a projected $32 million in workers’ compensation premium reductions in the coming year, and have seen a savings of more than $280 million since the program was privatized in 2005. This week, the National Council on Compensation Insurance (NCCI) filed a proposed reduction in workers’ compensation loss cost rates with the Offices of the West Virginia Insurance Commissioner – the tenth consecutive reduction in 10 years.
“We’ve worked hard in West Virginia to create a business climate that encourages companies to innovate, expand and create new jobs,” Gov. Tomblin said. “With this rate reduction, our businesses are reaping the rewards of both lower taxes and lower workers’ compensation insurance premiums. The new rates are an excellent sign that our state continues to move in the right direction for continued job growth.”
NCCI, West Virginia’s rating agent, has proposed an overall 9.1 percent loss cost rate decrease with the West Virginia Insurance Commissioner. The new loss cost rate is effective November 1, 2014.
“West Virginia is reaping the fruits of our labor from the reforms of the state’s workers’ compensation program,” said U.S. Senator Joe Manchin. “Privatizing workers’ compensation in West Virginia was one of my most rewarding achievements and impactful issues my administration addressed when I first arrived in the governor’s office. I thank Governor Tomblin for his courageous efforts at the time as Senate president to help accomplish these reforms in 2005, and I truly appreciate his continued commitment and hard work as Governor. Now, our state has gotten its financial house in order, and we are living within our means, enjoying a steady revenue stream, and have once again become competitive in West Virginia and around the country.”
This reduction serves as the tenth consecutive decrease in loss costs since privatization and accounts for a cumulative decrease of 58.7 percent from pre-reform levels.
“This rate reduction, and the related premium savings to employers, is a positive indication of the progress that has been made in our market,” said Insurance Commissioner Michael D. Riley. “We are encouraged that our workers’ compensation market continues to move in a positive direction for our businesses and their employees.”
Source: WV Governor’s Office