Vermont: WC rates expected to decline in '09, officials say
Workers' compensation rates in Vermont will likely fall in 2009, according to state officials. The National Council on Compensation Insurance, which produces and files rates for insurers in many states, recently recommended a 13 percent average rate decrease for the state, which would go into effect in April.
The recommendation comes after a 4 percent decline last year. NCCI officials attributed the reduction to fewer workers' comp claims filed in the state. According to the Vermont Department of Banking, Insurance, Securities and Health Care Administration, the state Department of Labor has been active in promoting a culture of safety in workplaces across the state, which has reduced the frequency and severity of workplace injuries. The number of lost time claims in Vermont continues to drop, a trend that began in 2000. Officials said the decline in the frequency of work-related injuries offset an increase in the average cost per case, an increase driven in large part by increasing medical costs.
Employers will see a reduction in their rates depending on their classification codes. For example, rates for dairy farmers could drop by approximately 17 percent, while ski resorts could see a decline of more than 13 percent.
The BISHCA will evaluate the recommendation before it is approved.
January 22, 2009
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