November 21, 2017 Oregon workers' compensation insurance rates to decrease overall for 2018 The Oregon Department of Consumer & Business Services announced that for the fifth consecutive year the workers' compensation insurance "pure premium" rate is scheduled to decrease. While some rates will increase, Oregon employers will see an average 14% decrease in pure premium costs for calendar year 2018. (Bulletin No. 367, Oregon Department of Consumer & Business Services.) Some rates will decrease, others will stay the same and others will increase, as in 2017, as follows: — Pure premium. As stated above, the pure premium rate will decrease an average 14% in 2018. Pure premium is the portion of the premium employers pay insurers to cover anticipated claims costs for job-related injuries and deaths. The pure premium rate is the base premium reflecting the actual cost of workplace injury-and-illness claims before insurer administrative expenses and profit are added. The decreased rate represents an average across all types of businesses. Rates for specific businesses and industry groups may be higher or lower, depending on group and individual claim records. Employers pay their premiums directly to their insurers. Premiums do not fund state programs or services. — Premium assessment. The assessment to cover the costs of administering workers' compensation programs will increase from 6.8% to 7.4% in 2018. Self-insured employers and public-sector self-insured employer groups will pay at 7.6%, up from 7.0% for 2017. Private-sector self-insured employer groups will pay at 8.4%, up from 7.8% for 2017. Workers' compensation insurers, self-insured employers and self-ensured employer groups pay this assessment to the state. Insurers can pass on the cost of the assessment to the employers they cover, but must identify the assessment as a separate line item on their billing statements. — Workers' Benefit Fund assessment. This assessment will remain at 2.8 cents per hour for 2018. (This assessment rate decreased from 3.3 cents as of 2017.) This assessment funds return-to-work programs, provides increased benefits over time for workers who are permanently and totally disabled, and gives benefits to families of workers who die from workplace injuries or diseases. Employers pay at least half of this assessment and deduct no more than half of it from workers' wages. Employers then submit the total to the state through Oregon's Combined Payroll-Tax Reporting System. The pure premium rate decrease is effective January 1, 2018, but employers will see the changes when they renew their policies in 2018. The change to the premium assessment is effective January 1, 2018. The combination of the changes in pure premium and assessment rate will result in the average employer paying $0.90 per $100 of payroll for claims costs and assessments, down from $1.03 for 2017. Go here for more information on Oregon workers' compensation rates. ——————————————— ——————————————— EY Payroll News Flash | ||||
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