Kentucky employers to see 10.8% decrease in workers’ compensation costs
Kentucky employers can expect a significant decrease in workers’ compensation costs as the Kentucky Department of Insurance (DOI) has announced the approval of the 2018 rate filing used to develop rates for workers’ compensation coverage, showing a decrease of 10.8% for Kentucky employers.
According to the figures submitted in the 2018 annual rate filing, the average reduction of 10.8% across the class codes includes manufacturing, office and clerical, contracting, and goods and services.
DOI Commissioner Nancy Atkin credits much of the decrease in costs to the passage of House Bill 2, which made significant reforms to the workers’ compensation system for the first time in over twenty years.
“HB 2 gave important reforms that encompass several common-sense changes and even increase some benefits,” said bill sponsor Rep. Adam Koenig, of Erlanger. “This bill brought the first reforms to workers’ compensation since 1996. I appreciate everyone involved in helping to bring down these costs.”
While the bill made many improvements to the system, its passage was also critical because of what could have transpired had the legislation not been approved. Over the past few years, the Kentucky Supreme Court found several Kentucky workers’ compensation statutes unconstitutional, dealing a blow to every employer in the Commonwealth.
The Kentucky Chamber led a coalition of nearly 50 businesses along with private and public agencies and associations to advance the cause. The Kentucky Chamber was joined by the Kentucky League of Cities, the Kentucky Association of Counties, the Kentucky Retail Federation, the Kentucky School Board Association, the Kentucky Professional Firefighters Association and large employers such as Toyota, Ford, and UPS to demonstrate the broad appeal of the bill.
The approved 10.8% decrease was approved effective Oct. 1.