North Dakota’s Workers’ Comp Rates to Rise 2.5 Percent in July

The North Dakota Workforce Safety & Insurance (WSI) board of directors approved the 2008-2009 premium rate plan on Thursday, May 22nd. While the new rating plan begins July 1, 2008, it calls for no change in statewide premium rates, overall statewide premiums will rise by a combined 2.5 percent. This is a result of North Dakota’s payroll wage cap rising from $21,300 to $22,100 on July 1st. In North Dakota employers only pay workers’ compensation premium on a worker’s wages up to the payroll wage cap.

“The good news is premium rates are remaining stable to employers, despite a rise in medical inflation,”; said Mark Gjovig, chief governance officer of the WSI Board. “In addition, we continue to see a drop in the
number of our most severe injuries, those requiring time away from work. This shows that employers in this state are working hard to make safety a priority and are working hard to keep their workers from getting hurt in the first place.”;

While the global rate structure for WSI will remain unchanged from last year, individual rate classes may see rate increases or decreases of up to 15 percent based on their industry’s claim and loss history.

Overall 65 rate classifications will see a decrease after July 1st, 58 will be increased and 18 will remain the same. The premium rate proposal will result in no change to the minimum premium, which is currently $250.

Next month the WSI Board will meet to decide what premium dividend credits will be offered to employers for the fiscal year beginning July 1st.

Agency Executive John Halvorson says the new rates are expected to increase Workforce Safety’s premium collections by 2.5 percent, from $135 million to $138.4 million annually.

Workforce Safety will collect insurance premiums from a worker’s first $22,100 in annual wages. Now, the premium applies to the first $21,300 of wages.

Sources: WSI and Associated Press

Topics Trends Workers' Compensation Pricing Trends