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• Alaska medical fee schedule sunset results in change to proposed rate decrease. Insurance Commissioner Linda S. Hall has approved an overall decrease of 2.5 percent in voluntary loss costs and 0.4 percent in assigned risk rates. The amounts are different from rate changes proposed by NCCI.
  The original filing for the 2011 rates -- a 2.1 percent decrease for voluntary loss costs and no change for assigned risk rates -- was issued prior to the resolution of the medical fee schedule sunset. Under Alaska statutes, the fee schedule for medical treatment or service became inapplicable as of Dec. 31.
  Recently, the lieutenant governor filed a regulation putting in place a medical fee schedule that is the same as the previous one and affects medical treatment or services provided until July 1 of this year. NCCI subsequently said the pro-rated effect of the new sunset date added minus 0.4 percent to the overall filing.
• Connecticut regulators partially approve proposed rate hikes. Pure premium loss costs are increasing by 5.8 percent this year. However, Insurance Commissioner Thomas R. Sullivan rejected NCCI's proposed 12.7 percent hike in assigned risk rates.
  In issuing his order, Sullivan termed as "unsupported and excessive" the following components of the assigned risk rates:
  The 1.3 percent change for the provision for uncollectible premium.
  The 4.0 change for the assigned risk differential.
  Sullivan approved NCCI's proposed 5.7 percent increase for the experience, trend and benefits component and the 1.2 percent hike for the assigned risk expenses for an overall increase of 7 percent. He authorized NCCI to submit revised assigned risk plan rates for review to be effective Jan. 1.

Read more at the WorkersComp Forum homepage.

January 17, 2011