Magnifying Glass
Back to Sponsored Content

SCDOI Approves WC Loss Cost Filing Decrease

11 Jun, 2010 WorkersCompensation.com

                               
Columbia, SC (CompNewsNetwork) - Scott H. Richardson, Director of the South Carolina Department of Insurance, announced today that the Department has reviewed and approved a Workers' Compensation Voluntary Market Loss Costs and Rating Values Filing, submitted by the National Council on Compensation Insurance, Inc., allowing an overall rate decrease in workers' compensation loss costs of 9.8%. “This is the second year a decrease has been approved,” said Director Richardson. “We are pleased to see this trend toward an improved economic climate and hope to see this continue into next year.”
 
In 2008, the Assigned Risk Plan, South Carolina's residual market mechanism, accounted for approximately 3.9% of the direct written premium for workers' compensation insurance coverage in the state. This was a decrease from 7.7 % in the previous year. “This decrease indicates that the majority of all workers' compensation insurance coverage is being written through the voluntary market thereby demonstrating a strong marketplace,” stated Director Richardson. “There are several reasons for this trend as we have seen an increase in employer safety programs, a decrease in claim frequency and changes in the severity of claims.”
 
Medical services account for approximately 42% of the total benefit costs incurred in workers' compensation systems. This is a significant change from two years ago. Indemnity payments (i.e. wage replacement costs) now account for the majority of workers' compensation costs. The primary reason for this shift is the change in the hospital fee schedule that was implemented in October 2006 by the South Carolina Workers' Compensation Commission.
 
In 2007, Governor Sanford enacted Act No. 111 entitled Workers' Compensation Reform. This law addressed many of the administrative issues often cited as cost drivers to the workers' compensation system and called for various reforms to the South Carolina workers' compensation system in an effort to help stabilize the rates in this market.
 
Among the reforms established by 2007 S.C. Act No. 111, was the requirement that insurers file and receive approval of the loss cost multiplier and any modifications to the approved loss costs 30 days prior to using the new rates. The Act also required the Department to engage the services of a credentialed actuary to review these filings, a practice the Department has and will continue to use when reviewing filings. Additionally, 2007 S.C. Act No. 111 provided for the elimination of the Second Injury Fund by 2013. “We believe these reforms will help stabilize the rates in this market,” concluded Director Richardson. “We will continue to monitor this trend and assess the impact these reforms have on workers' compensation rates in South Carolina as it will take several years to realize the full impact.”

    • Read Also

    IOH Announces Appointment of Scott Strickland as Chief Operating Officer (COO) 

    SAN DIEGO, CA — July 1, 2024 — Institutes of Health (“IOH”), a leading transdisciplinary Workers’ Compensation treatment organization focused on patients suffering from complex and chronic conditions, is delighted to announce the appointment of […]
    Rising Medical Solutions Becomes Bronze Associate Partner of WorkCompCollege.com 

    Lakewood Ranch, FL (July 2, 2024) – WorkCompCollege.com, a division of Workers’ Compensation Educational Services, LLC, has announced a Bronze Associate Partnership with Rising Medical Solutions (Rising). Their mission to “make lives better” is consistent […]
    The Key Role of a Workers’ Comp Case Manager 

    Close attention through the claim lifecycle ensures the best claimant outcomes   In the world of workers’ compensation, where endless variables seem to be at play, Horizon Casualty Services, Inc., (HCS) acknowledges that having a clear […]

    About The Author

    • WorkersCompensation.com

    More by This Author

    Ametros’ Melissa Coleman Honored by the IAIABC as a 2024 NextGen Winner

    Wilmington, Mass. (June 24, 2024) – The IAIABC has recognized Melissa Coleman as a 2024 NextGen Award Winner. Coleman is the Senior Vice President of Marketing for Ametros, which helps people manage their medical funds following workers’ […]
    ReEmployAbility Announces Free Webinar: ‘Overcoming Jurisdictional Return-to-Work Challenges’

    ReEmployAbility, Inc.Contact: Rebecca Dearth(813) 261-3117 | news@reemployability.com Brandon, FL (May 10, 2023)- ReEmployAbility CEO and Founder Debra Livingston will be hosting a second free, live Work Comp Central webinar in their continued series to educate […]
    NCCI Annual Golf Event Tees Up $25,000 for Kids’ Chance of America

    (Orlando, FL–May 10, 2023)—The National Council on Compensation Insurance (NCCI) has given $25,000 to Kids’ Chance of America, supporting college scholarships for the children of injured workers. NCCI made the donation in conjunction with its Annual […]

    Read More

    IOH Announces Appointment of Scott Strickland as Chief Operating Officer (COO) 

    SAN DIEGO, CA — July 1, 2024 — Institutes of Health (“IOH”), a leading transdisciplinary Workers’ Compensation treatment organization focused on patients suffering from complex and chronic conditions, is delighted to announce the appointment of […]
    Rising Medical Solutions Becomes Bronze Associate Partner of WorkCompCollege.com 

    Lakewood Ranch, FL (July 2, 2024) – WorkCompCollege.com, a division of Workers’ Compensation Educational Services, LLC, has announced a Bronze Associate Partnership with Rising Medical Solutions (Rising). Their mission to “make lives better” is consistent […]
    The Key Role of a Workers’ Comp Case Manager 

    Close attention through the claim lifecycle ensures the best claimant outcomes   In the world of workers’ compensation, where endless variables seem to be at play, Horizon Casualty Services, Inc., (HCS) acknowledges that having a clear […]
    Ametros’ Melissa Coleman Honored by the IAIABC as a 2024 NextGen Winner

    Wilmington, Mass. (June 24, 2024) – The IAIABC has recognized Melissa Coleman as a 2024 NextGen Award Winner. Coleman is the Senior Vice President of Marketing for Ametros, which helps people manage their medical funds following workers’ […]
    PhysNet Achieves Fifth Consecutive Year of SOC 2 Type II Certification

    Jacksonville, FL, June 3, 2024 – PhysNet proudly announces its attainment of SOC 2 Type II compliance for the fifth consecutive year, reinforcing its commitment to providing enterprise-level security for customer data within its cloud-based […]
    WorkCompCollege.com Welcomes Alistair Ienstein as New Academic Innovator 

    June 20, 2024 – WorkCompCollege.com is thrilled to announce the appointment of Alistair Ienstein as its new Academic Innovator. Alistair, a unique and revolutionary AI presence, is poised to transform the learning experience for students […]

    Request a Demo

    To request a free demo of one of our products, please fill in this form. Our sales team will get back to you shortly.