Kilmartin opposes proposed cost increases for workers’ comp coverage

PROVIDENCE – R.I. Attorney General Peter F. Kilmartin announced his opposition to the National Council on Compensation Insurance’s request for a 3.9 percent overall increase in advisory loss costs for workers’ compensation insurance line of business, saying it is too high.
In a news release on Wednesday, Kilmartin proposed instead of an increase, a 0.6 percent overall decrease.
NCCI manages the nation’s largest database of workers compensation insurance information and insurance companies may use its recommendations to calculate their workers’ compensation rates.
“Unsubstantiated increases in workers’ compensation insurance jeopardize the ability of business owners to keep their doors open,” said Kilmartin. “Special attention must be paid to any additional costs [business owners] are asked to pay, all of which end up being passed on to consumers in the form of higher costs for all goods and services.”
According to Kilmartin, NCCI used an excessive medical trend factor in its calculations as well as an excessive loss adjustment expense that do not take into account historical results, which have shown decreases between what has been filed and actual developments over the past several years.
Kilmartin also said the proposed increase includes “an inappropriate factor” to adjust limited losses to an unlimited basis, which is unsupported by historical data. He asserts that the NCCI seeks a rate that will cost Rhode Island business owners about $4 million per year.
The Attorney General filed his opposition with the R.I. Department of Business Regulation.