VERMONT RAISES COMP RATES:

Vermont Commissioner John P. Crowley has approved workers’ compensation insurance rate increases of 10.3 percent in loss costs for the voluntary market and an increase of 14.2 percent in the rates for the assigned risk market, effective April 1, 2004. The National Council on Compensation Insurance (NCCI) had filed for a 16.5 percent increase in voluntary loss costs and for a 20.6 percent increase in the assigned risk rates. In announcing the rates, Crowley noted that there are several new programs designed to reduce the higher costs for those in the assigned risk market, through incentives for workplace safety. A merit rating plan was introduced last year to assist small business owners by offering a premium discount to employers with good safety records. This year Crowley approved a merit rating plan discount of 10 percent, which doubles the current savings for small employers with a history of safe operations. The Loss Sensitive Rating Program (LSRP) is mandatory for large employers in the assigned risk market currently paying premiums of $200,000 or greater. It is designed to encourage safety efforts by employers. Meanwhile workers’ compensation legislation has been passed by the House but remains further action in the Senate. The reform package (H. 632) advocated by Gov. Jim Douglas contains provisions for higher penalties for fraud, incentives for return-to-work, mandatory medical case management, shortening of the time allowed to file claims, restrictions on cost of living adjustments and changes to the law governing on-premises recreational vehicle injuries.