THE VALUED VOICE

OCI approves sixth consecutive decrease in worker’s comp insurance premiums

Fee schedules continue to be a “solution looking for a problem”

The Wisconsin Office of the Commissioner of Insurance has approved a 5.44% overall decrease in Worker’s Compensation insurance premium rate levels beginning Oct. 1. The Wisconsin Compensation Rating Bureau, an unincorporated association of insurers and rate service organization with a governing board that includes five stock and five mutual insurers, announced on May 21 that it recommended the 5.44% decrease that has now been approved by OCI. As reported in Valued Voice on May 27, Wisconsin Hospital Association President and CEO Eric Borgerding observed, “Wisconsin continues to shine when it comes to trends in workers’ compensation premiums for employers. Not only is the overall cost of workers’ compensation continuing to drop for Wisconsin businesses, when a worker is injured at one of those businesses, they get great health care and back to work sooner.”  

Last week, Borgerding criticized the management representatives on the Worker’s Compensation Advisory Council for proposing, again, a medical fee schedule to set prices for health care services rather than encouraging insurers to negotiate price and payment terms with health care providers. Borgerding added this week, “OCI has now approved the sixth consecutive year of decreased overall rates for work comp insurance premiums. That’s the eighth decrease in ten years and without medical fee schedules, the epitome of a solution looking for a problem. It’s well time to move on.”