State businesses see another worker’s comp premium drop

Significant reduction is 8th straight annual savings; 10th in the last dozen years

Madison, WI – Wisconsin businesses are enjoying an eighth straight year of savings in their worker’s compensation insurance premiums as of yesterday, October 1. The latest substantial rate reduction is an 8.4% drop, which the Wisconsin Department of Workforce Development (DWD) estimates is worth nearly $150 million in premium savings for state businesses.

The Worker’s Compensation Ratings Bureau (WCRB), an unincorporated association of insurers recognized in Wisconsin law, proposes rate adjustments each year, and those proposed rates are reviewed and approved by the Wisconsin Commissioner of Insurance. In the WCRB’s 2022 State of the State, WCRB President Bernard Rosauer touted the announcement of the rate reduction taking effect: “The consecutive worker’s compensation rate decreases are remarkable and are partially driven by important factors in which Wisconsin excels compared to many other states. Wisconsin’s results are partially driven by superior return to work, low litigation rates, low benefit delivery expenses, and superior (injured) worker satisfaction.”

“Wisconsin’s worker’s compensation system continues to shine as a national success story for
both businesses and workers,” said Wisconsin Medical Society Chief Policy and Advocacy Officer Mark Grapentine, who is one of four health care liaisons to the Worker’s Compensation Advisory Council (WCAC). “Despite having a workplace injury rate worse than the national average, Wisconsin workers who get hurt doing their jobs return to the workplace quickly and satisfied with their care. That’s a win-win for everyone in the system.”

Despite the latest in a long string of cost reductions—the 10th drop in the last 12 years—business interest representatives to the WCAC are once again proposing a simplistic health care fee schedule as a “cost savings.” Artificially reducing appropriate health care fees for services will make it much harder for the state’s healers to take care of worker’s compensation patients.

“There are reasons why Wisconsin’s work comp system is a national model,” said Wisconsin Hospital Association President and CEO Eric Borgerding. “Instead of copying systems like Medicaid that actually cause hospitals and providers to lose money on every patient visit, Wisconsin’s system has remained much more fair for all involved: injured workers can get care quickly, health care providers are paid fairly, and businesses enjoy reductions in their premiums.”

“We hear from our patients who were injured on the job that they are grateful for the excellent health care available to them through the worker’s compensation program,” noted John Murray, CEO of the Wisconsin Chiropractic Association. “Policymakers should be very wary of another government rate-setting process designed to shift money to business despite their reduced premium costs.

“Tinkering with health care payments will cause some providers to reduce their participation in the program,” Murray said. “That’s what the data from other states show so clearly.”

“Rolling the dice with a system that works doesn’t make sense,” added Annie Early, government affairs consultant for the Wisconsin Chapter of the American Physical Therapy Association. “Especially when it puts at risk injured workers’ treatment and care, worker satisfaction, and Wisconsin’s excellent return to work rates.”

The Wisconsin Legislature is expected to consider changes to the Worker’s Compensation program before they adjourn the current legislative session in spring of 2024.

For more information, contact:

John Murray
Wisconsin Chiropractic Association

Eric Borgerding
Wisconsin Hospital Association

Mark Grapentine
Wisconsin Medical Society

Annie Early
American Physical Therapy Association Wisconsin

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