Higher Claims, New Law Could Drive Double-Digit Percentage Increase in Missouri WC Rates

A higher incidence of claims combined with a new law will likely cause a double-digit rise in Missouri’s workers’ compensation rates next year, a new report suggests.

The National Council on Compensation Insurance (NCCI) says that, in addition to a 7.6-percentage increase in claims costs, rates will be impacted by a new law that shifts some type of injury claims from a “Second Injury Fund” to the main fund. NCCI estimates that the law will raise annual costs an additional 3 percent. Moreover, the new law allows state officials to impose an additional 3-percent surcharge on workers’ comp premiums in 2014 to help replenish the Second Injury Fund.

All told, NCCI says a business could face a nearly 15-percent increase in costs related to workers’ comp insurance if its individual rates follow the general NCCI cost projections. The actual premium costs will vary both by categories of business and by a particular business’ claims history, according to NCCI.