Workers' comp rates drop

Workers compensation rates for many Nevada employers may decline sharply next year as the result of reduced losses.

The National Council on Compensation Insurance, which figures the loss portion of workers' compensation rates in the state, last week filed for an average 16.4 decrease effective Jan.

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Workers compensation rates include two pieces:

* The loss data collected by the National Council on Compensation Insurance.

Every insurance company that writes workers' compensation coverage in the state is required to use the organization's information.

* The expense and profit provisions for each individual insurance company.

The loss data, however, account for the biggest piece of the rates, said Charles Knaus, a lead actuary with the Nevada Division of Insurance.

If the data filed by the National Council on Compensation Insurance is approved by the state, most employers should see a reduction in their basic rates for workers' compensation, said Alice Molasky-Arman, the state's insurance commissioner.

She said, however, that some companies could face rate increases of up to 12 percent, depending on their industry and their individual loss experience.

The loss portion of rates in the assigned risk program coverage for high-risk companies that can't get coverage in the traditional insurance market would decline 13.5 percent under last week's filing.

Molasky-Arman said, however, that some companies in the assigned risk program may face increases of up to 15 percent.

The new rates for voluntary coverage or assigned risk alike would apply to each employer on the anniversary date of its workers' compensation coverage.

The exact rates depend on the employer's loss experience as well as the expenses and profits approved for its carrier.

Maggie Karpuk, who handles Nevada for the National Council on Compensation Insurance, said the decline reflects good work by workers' compensation carriers.

She said they've been diligent in handling claims early, when they're typically less expensive, and also have focused on workplace safety to reduce claims.

Last week's filing also calls for changes in the assigned risk program after Molasky-Arman raised concern that some small businesses with only one or two claims were unfairly hit by the program.

The National Council on Compensation Insurance, based in Boca Raton, Fla., manages the nation's largest database of workers compensation insurance information.

It collects the information from participating companies.

Its filing is available for review at the insurance division office, 788 Fairview Drive in Carson City.

Molasky-Arman said she expects to make a decision on the filing within a few weeks.