PROVIDENCE – Rhode Island’s administrative assessment rate for insurance companies dispensing workers’ compensation coverage has been cut from 6.25 percent to 5.75 percent for fiscal year 2018, the R.I. Department of Labor and Training announced Wednesday.
The reduction is the fourth enacted by the Department since 2013 and is estimated to conserve insurers around $1,440,000 by the end of June 2018, as per actuarial data from the department.
The administrative assessment rate affects insurance companies providing coverage to employees seeking compensation for injuries incurred at work. Worker’s compensation insurance helps these employees finance medical costs and recoup lost wages.
Wednesday’s reduction will ease the burden on insurers guaranteeing worker’s compensation, DLT director Scott Jensen said, adding that the decision was made in light of the improving economic conditions in the state.
“Because of the improving economy and the effective administration of the workers’ compensation system, we are able to pass along savings to the insurers,” Jensen said. “One of the highest priorities for the [Gina M.] Raimondo administration is to make it easier to do business in the state and this is just one way we can make that happen,” he added.
Kyle Borowski is a PBN contribuing writer.
