Missouri department recommends rate increase for workers’ compensation

An injury suffered as a result of a Missouri work accident is a serious legal matter. Northland Injury Law’s Missouri compensation lawyers have helped countless workers fight for their rights under the Missouri workers compensation laws. If you have suffered a work injury, there is a good chance your employer has workers’ compensation insurance coverage to cover your medical treatment, lost wages, and settlement for your permanent injury. When an injury occurs, you should contact a workmans comp attorney as soon as possible to protect your rights. Many injured workers think they will automatically be provided with adequate medical care and timely lost wage payments. However, many workers quickly find out that the insurance carriers do not play fair. The Kansas City workers compensation attorneys at Northland Injury Law have the experience necessary to help you navigate the workers’ compensation system and obtain a fair and just recovery, whether by settlement or by prosecuting your work injury claim through a hearing.

The Missouri Department of Commerce and Insurance is recommending a 1.0 percent increase in workers’ compensation insurance loss costs for 2021. This marks the first time in six years that average workers’ compensation rates will increase.

This slight increase is attributable to a 0.5% increase in experience, trend and benefit changes and a 0.5% increase in loss based expenses.

“Average medical claim costs have increased every year since 2014,” said Department of Commerce and Insurance Director Chlora Lindley-Myers. “Recommended loss costs are increasing slightly for 2021, due to the rise in average claim costs. The Missouri Workers Compensation Insurance Market remains robust and competitive with 356 carriers currently offering coverage within the state. I encourage employers to shop around for the best workers’ comp rates. The department provides an online rate checker to assist employers with comparison shopping.”

Prospective loss costs are intended to cover indemnity and medical payments for injured workers and some of the expenses associated with providing these benefits. Insurers use loss costs to set their workers’ comp rates. Every year, the National Council on Compensation Insurance (NCCI), an industry-funded group, files advisory loss costs with the department. The department reviews the NCCI’s methodology and assumptions and develops its own recommended loss costs. Under Missouri law, insurers may set their rates based on the NCCI’s recommendations, the department’s recommendations, or their own actuarial analysis. Insurers are not required to change their rates in 2021, regardless of the recommendations made.

Both the NCCI and the department propose an overall loss cost increase of 1.0 percent for policies effective Jan. 1, 2021.

The NCCI’s proposed average changes in loss costs by industry group are shown below:

Manufacturing +1.4%
Contracting −1.1%
Office Clerical +2.3%
Goods Services +1.7%
Miscellaneous +0.9%

The NCCI’s 2021 loss cost filing and the department’s independent actuarial review are available on the department’s website.

Call Northland Injury Law for Help With Your Work-Related Injury!

If you have suffered a work-related injury or illness, Northland Injury Law can help ensure you get full and fair compensation under the law. The attorneys at Northland Injury Law are experienced in navigating the ins and out of the workers’ compensation process and their experience can help you with a complicated claim. For a more comprehensive list of all the questions you might have about workers’ compensation, and for a free consultation, please call (816) 400-4878. If you have further questions about your case, do not hesitate to reach out to us by the phone number, through the contact form, or even with the live chat option listed on our site!