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Workers' Comp:

What happens when legislature enacts an insurance reform bill that results in rates being cut by 50 percent over a five-year period? Lawmakers leave the line of insurance alone. Such was the case in

By Michael H. Adams | Updated on May 31, 2008

What happens when legislature enacts an insurance reform bill that results in rates being cut by 50 percent over a five-year period? Lawmakers leave the line of insurance alone. Such was the case in the 2008 legislative session when lawmakers all but ignored workers’ compensation except for a few minor changes that will likely go unnoticed by employers and carriers.

The success of the 2003 reforms have become so ingrained in the market that they almost seem surreal, given the dramatic fall in rates and the hyper competitive posture adopted by carriers. Employers’ rates have been cut by more than half, including the 18.4 percent decrease — the statewide average — that took effect this year, which translated to a collective savings of $700 million.

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