The increase is advisory and follows last year's 2.6 percent increase.
Medical costs comprise 75 percent of Indiana's total benefit costs, according to the rate filing. That's higher than most other states. "The rate of growth in medical benefits is once again expected to increase at a faster pace than workers' wages," the filing said.
The department based the filing on actuarial data from NCCI.
Tracking growth in medical claims costs is cited as the reason for a 1.7 percent increase in Oregon's pure premium rate. The head of the Department of Consumer and Business Services said that while workers' comp costs are generally flat, medical costs are playing a larger role in annual changes.
The DCBS also announced that the assessment to cover the costs of administering workers' comp programs would remain at 6.2 percent of premiums; self-insured employers and employer groups pay 6.4 percent.
The Workers' Benefit Fund assessment will increase from 2.8 cents per hour to 3.3 cents in 2013. Administrative costs of the program will be reduced, and wage subsidies to employers who reemploy injured workers will be reduced from 66 to 56 days.
Oregon is ranked 13 lowest of the states in terms of workers' comp rates, according to preliminary information from the DCBS.
Read more at the WorkersComp Forum homepage.
October 29, 2012
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