Workers’ compensation legislation results in significant savings for employers
Earlier this week, the National Council on Compensation Insurance (NCCI) filed advisory loss cost changes due to the passage of House Bill 2, workers’ compensation modernization, to be reviewed and approved by the Department of Insurance. This filing is required by Kentucky law.
Because of the passage of House Bill 2, loss cost rated proposed will reflect a decrease of 5.3% for employers in Kentucky. At this time last year, after the Supreme Court decision on Parker v. Webster County Coal, employers were looking at a significant increase in workers’ comp costs if modernization was not passed in the 2018 General Assembly.
Analysis by NCCI of House Bill 2 concluded that once the entire bill goes into effect, there will most likely be additional future savings to the workers’ compensation system, in addition to the -5.3%.
House Bill 2 sponsor, Rep. Adam Koenig (Erlanger), told The Bottom Line, “The legislature was confident that House Bill 2 would not only provide treatment for the injured worker but decrease costs for employers as well. I am happy to see that the actions of the General Assembly in passage of House Bill 2 will result in significant savings for all Kentucky businesses.”