November 9, 2021 3:52pm
Kentucky employers see continued decrease in workers’ comp costs
Last week, the Kentucky Department of Insurance (DOI) approved another workers’ compensation loss cost decrease for employers in the state. The 2021 approved rate filing used to develop rates for workers’ compensation coverage shows an average decrease of 10.4% for Kentucky employers over the past year, and a 19% decrease over the past two years.
This marks the 16th straight year that the state has seen an overall decrease in Kentucky’s loss costs. A loss cost is an average compensation for lost wages based on the level of disability pus medical benefits.
Kentucky has followed nationwide trends of steadily declining workers’ compensation costs in recent decades due in part to safer workplaces, fewer claims, and fewer covered workers. Additionally, the reforms supported by GLI and adopted by the General Assembly in 2018 have led to a significant decrease in costs for employers across the state.
By enacting reforms to reduce workers’ compensation costs, Kentucky has improved the state’s competitive position to attract new jobs and investments.