Kentucky employers can expect another significant decrease in their workers’ compensation costs as the Kentucky Department of Insurance (DOI) has announced the approval of the 2021 rate filing used to develop rates for workers’ compensation coverage, showing an average decrease of 10.4% for Kentucky employers.
According to the loss costs figures submitted in the 2021 annual rate filing, there is an average reduction of 10.4% across the class codes including manufacturing, office and clerical, contracting, and goods and services. Over the past two years, employers have seen an average of 19% decrease.
The dramatic decrease in workers’ compensation costs over the past few years can be attributed to the 2018 passage of House Bill 2, which made significant reforms to the workers’ compensation system for the first time in over twenty years. The Kentucky Chamber led a large coalition of nearly 50 businesses along with private and public agencies and associations to pass the bill.
This August, the Kentucky Supreme Court upheld the legislation for the second time after broad appeal of the bill was demonstrated by the Kentucky Chamber, 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.
The approved rate filing became effective Oct. 1, 2021.