To counteract the steep rise in medical and prescription drug costs, the North Dakota Workforce Safety and Insurance’s (WSI) board of directors authorized the agency to go forward with a proposal for a slight premium increase for workers’ compensation coverage. The net effect of the premium rate proposal with an offsetting dividend will increase statewide premiums by about 4 percent. Initially the indication was for a 9 percent statewide average rate increase. However, due to the improvement in the fund’s financial position in recent years, and to help mitigate the premium increase resulting from the rate indication and change in the taxable wage cap, a performance dividend will be issued. The estimated dividend will be approximately $5 million to $6 million and will offset about half of the amount generated by the indicated statewide premium increase. North Dakota employers will still be paying the lowest premiums in the country, WSI said in a statement.
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