Texas Workers’ Comp Division: Rates Among Nation’s Lowest

Texas has some of the nation’s most affordable workers’ compensation coverage, the Texas Division of Workers’ Compensation reports.

A study by the Oregon Department of Consumer and Business Services ranks all 50 states and Washington, D.C., based on premium rates that were in effect Jan. 1, 2016. Texas, with premiums at $1.45 per $100 of payroll, ranked number 10, four spots higher than the previous Oregon study in 2014.

Texas’ workers’ compensation premium rates are about 21 percent lower than the median for all states, according to the study. California has the most expensive rates in the nation, at $3.24 per $100 of payroll. New Jersey has the second highest rates, at $2.92 per $100 of payroll.

Rates in Texas are favorable compared with other high population states, such as Florida, Illinois and New York.

Among other South Central states, only Arkansas has lower average rates, at $1.06 per $100 of payroll.

North Dakota has the least expensive rates in the nation — 89 cents per $100 of payroll.

In a statement released by the division, Texas Commissioner of Workers’ Compensation Ryan Brannan said the Oregon study results prove “that we’re becoming more efficient, proactive, and transparent.”

He said the division is continuing to make improvements. “We’re working on several efforts to keep our costs low. We’re cutting data storage costs by digitizing records, reducing prescription drug costs with a closed formulary, and eliminating waste and fraud with a new in-house fraud unit. We’ve also launched a statewide effort to streamline the dispute resolution process,” Brannan said.

Topics Texas Workers' Compensation Oregon