Kentucky employers see total of 25% decrease in workers’ compensation costs over two years
Kentucky employers can expect another significant decrease in workers’ compensation costs as the Kentucky Department of Insurance (DOI) has announced the approval of the 2019 rate filing used to develop rates for workers’ compensation coverage, showing an average decrease of 9 percent for Kentucky employers.
According to the figures submitted in the 2019 annual rate filing, the average reduction of 9 percent across the class codes includes manufacturing, office and clerical, contracting, and goods and services. Over the past two years, employers have seen an average 25 percent decrease.
Department of Insurance 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.
“The overall decrease demonstrates the effectiveness of HB 2 and the commitment of Kentucky employers to employee safety,” said Atkins. “The Commonwealth is taking the necessary steps to increase investment and job creation. The decreased claim figures continue to make Kentucky an attractive state to do business.”
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 rate filing is effective Oct. 1.