Oregon employers will pay less for workers’ compensation coverage on average next year, according to the Oregon Department of Consumer and Business Services.
The DCBS said the drop in costs marks 10 years of average declines in the pure premium rate.
The department attributed the decline to the success of Oregon’s workers’ compensation system, which includes programs to control costs, maintain good benefits, ensure employers have insurance for their workers, and improve safety and health at work.
Employers, on average, will pay 93 cents per $100 of payroll for worker compensation costs in 2023, up from 97 cents in 2022, according to a DCBS proposal. This figure covers the costs of workers’ compensation claims, assessments, and the insurer’s profits and expenses.
The pure premium rate will drop by an average of 3.2% under the proposal.
The cost reduction is due to improved loss experience and loss development models in Oregon, according to the National Council on Compensation Insurance.
The total cost to employers of workers’ compensation insurance includes the pure premium and the profits and expenses of the insurer, as well as the assessment of the premium. Employers also pay at least half of the workers’ benefit fund assessment, which is a rate of cents per hour worked.
The decrease in pure premium will take effect on January 1, 2023, but employers will see the changes when they renew their policies in 2023.
Workers Compensation Oregon
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