Insurance Commissioner Stewart Announces Substantial Decreases in Workers’ Compensation Rates

Insurance Commissioner Karen Weldin Stewart Announces
Substantial Decreases in Workers’ Compensation Rates

Expected Savings for Employers May Reach $20 million

 

DOVER, DE  – Insurance Commissioner Karen Weldin Stewart today approved the Delaware Compensation Rating Bureau’s workers’ compensation amended rate filing, resulting in overall average decreases of 9.7% in the residual market rate and 11.5% in the voluntary market loss cost.

The decreases are the result of cooperation among the DCRB, the Department of Insurance and Delaware’s Ratepayer Advocate, and are expected to save employers approximately $20 million in insurance costs this year.

“After several years of rate increases, I am pleased to announce a decrease in the premium most business owners will pay this year when purchasing workers’ compensation insurance,” said Commissioner Stewart. “As I said when the preliminary numbers were released in the fall, the decrease is the result of all the stakeholders working together to bring down Delaware’s high health care costs, which have been driving rates up over recent years.

“I want to thank the General Assembly for passing House Bill 373 last session, requiring that medical costs be reduced over the next three years.  I particularly want to thank my fellow members of the Governor’s Workers Compensation Oversight Panel, including Chair Rich Heffron, and Attorney General Matt Denn, past Chair of Workers’ Compensation Task Force, for doing the hard work that laid the foundation for HB 373.”

The effective date of the decrease is retroactive to December 1, 2014 for new and renewal business.

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Learn how your business could save up to 19% on workers’ compensation insurance premiums by participating in the Delaware Workplace Safety Program. Learn more about the program by visiting http://delawareinsurance.gov/services/workplacesafetydiscount.shtml, or call 302-674-7377.

 

Delaware Department of Insurance: “Protecting Delawareans through regulation and
education while providing oversight of the insurance industry to best serve the public.”


Preliminary Workers’ Compensation Rates Indicate Decrease

Preliminary Workers’ Compensation Rates Indicate Decrease

Commissioner Stewart will review actuaries’ filings

 

DOVER, DE–The Delaware Department of Insurance is in receipt of Delaware Compensation Rating Bureau filing No. 1404, which indicates a decrease in both the voluntary loss cost and residual market rate for workers’ compensation insurance for 2015. Commissioner Karen Weldin Stewart is encouraged that DCRB’s initial indicated rates reflect a decrease.  The Commissioner has hired two independent actuaries to review the filing along with the Ratepayer Advocate’s independent actuary.

 

“If this potential decrease becomes a reality, it will be as a result of all the stakeholders working together to bring down the health care costs which have been driving workers compensation rates up over recent years,” said Commissioner Stewart. “I applaud the members of the General Assembly for passing House Bill 373, which mandates that medical costs be reduced by 33 percent over a three year period. I also congratulate my fellow members of the Governor’s Workers Compensation Oversight Panel for doing the hard work and research that was the foundation of HB 373.  Without the caps imposed on hospital fees by that legislation, I feel we would be facing rate increases in the neighborhood of 26 to 30 percent.”

 

The complete DCRB filing may be accessed by going to: http://www.dcrb.com/dcrb/filings/1404/d_filing_1404.htm

 

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For more information, contact Jerry Grant at 302-674-7303.

www.delawareinsurance.gov


Lt. Governor, Members of Workers’ Compensation Task Force Present Report for Governor and General Assembly

Dover, DE – On Thursday, May 15, 2014 at 1:00pm, Lt. Governor Matt Denn will host a press conference to present the Workers’ Compensation Task Force Report to the Governor and the General Assembly, submitted pursuant to House Bill 175, 147th General Assembly. He will be joined by members of the Task Force – including Senators Blevins and Hocker, Representatives Briggs-King and B. Short – and the Governor, who will all make remarks, along with Rich Heffron of the State Chamber and others.

BACKGROUND – Created by House Joint Resolution 3, the task force was established on January 30, 2013 by the General Assembly and Governor to address the 34% increase in average workers compensation rates over the prior two years. Those rate increases increased costs for Delaware businesses and made it harder for them to compete for bids with businesses from neighboring states. On May 13, 2013, the task force made their first set of recommendations to Governor Markell and the General Assembly to stop the large workers’ compensation rate increases that burden Delaware businesses. The General Assembly accepted the recommendations unanimously, including keeping the task force in existence through June 30, 2014, both so that it could consider some issues that it did not have time to discuss during the short time that it had to make recommendations, and so that it could monitor the impact of its recommendations and suggest stricter measures with respect to medical costs if necessary.

The task force stated in the 2013 report that if the reforms recommended in that report were not successful in controlling workers compensation premium increases, then the task force would recommend stricter measures to control premiums. The task force believes that the 11.4% to 14% increase in rates resulting from the last filing was an unacceptable result, and that rates need to be reduced.

The report to be issued on Thursday offers those stricter measures.

Thursday, May 15, 2014
1:00pm
Tatnall Building (next to Legislative Hall)
3rd Floor – Governor’s Press Room
150 Martin Luther King, Jr. Blvd. South
Dover, DE 19901


Delaware Insurance Commissioner Karen Weldin Stewart Announces Decision on DCRB Workers’ Compensation Rate Filing

Dover, DE-Delaware Insurance Commissioner Karen Weldin Stewart announces today that based on the agreement between the Delaware Department of Insurance, the Delaware Compensation Rating Bureau and the Ratepayer Advocate, she has approved the re-submission of the Delaware Compensation Rating Bureau (DCRB) workers’ compensation rate filing regarding the residual market rate and the voluntary market loss cost.

The annual filing was carefully reviewed and analyzed by the Delaware Insurance Department’s actuaries, as well as the Rate Payer Advocate’s actuary. The reports were posted on the Department’s website. The lower increases approved reflect a more appropriate balance in the cost of insurance premiums compared to the cost of the system. The Commissioner and the Rate Payer Advocate, along with their actuaries, concurred that the increases of 11.4% in residual market rates and 14% in voluntary market loss costs met the requirements in Delaware law that rates must not be inadequate, excessive, or unfairly discriminatory. The effective date of the increase is retroactive to December 1, 2013 for new and renewal business.

Commissioner Stewart stated “While three different actuaries have all concluded that an increase is indicated, I must weigh more than actuarial considerations in making my decision. The difficulties seen by Delaware employers as emphasized during the three public information sessions, the need for our economy to grow, and the rising costs faced by insurers must all be included in my final decision. This decision represents a savings of more than 45 million dollars to Delaware employers from the original submission. We encourage the DCRB and legislative leaders to continue to work toward a common goal of identifying and addressing the underlying cost drivers in Delaware’s workers’ compensation rates.” Stewart believes that continued momentum behind legislative reforms introduced in 2013 and those sought in 2014 to ensure that future rate requests are small will help to keep our economy strong and attract and retain businesses in Delaware. Stewart added “Unfortunately, a rate increase is necessary this year for worker’s compensation insurance in Delaware. My commitment to the consumer is unwavering; and I will continue to work with all parties to create further reform that we expect will result in a reduction in the overall cost drivers in the worker’s compensation system.”

For more information about the DCRB annual rate filings, visit the Delaware Department of Insurance website at www.delawareinsurance.gov.

Please see attached statement from the Rate Payer Advocate.
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Delaware Department of Insurance: “Protecting Delawareans through regulation and education while providing oversight of the insurance industry to best serve the public.”