Maine’s workers’ compensation insurance costs could be reduced by nearly 10 percent after the state approved an industry analysis.
The approval means Maine employers could save up to $27 million in workers’ compensation costs in the next year.
The reduction is based on an analysis of insurance claims by an advisory rating organization for insurance companies.
The decrease in costs in Maine is one of the largest in the country and takes effect next Tuesday.
The savings come from the Maine Bureau of Insurance approval of the National Council on Compensation Insurance (NCCI) 2024 loss costs for Maine.
NCCI analyzes workers’ comp loss costs for 38 states based on past and projected benefit payments.
Loss cost is the total amount of money an insurer must pay to cover claims, including settlement costs.
NCCI-approved loss costs are available to insurers to reference when filing their workers’ compensation rates with the Maine Bureau of Insurance.
The 9.6 percent decrease in loss costs ranges from a 6.5 to 10.7 percent reduction depending on the industry group. Most Maine businesses will see a reduction in their workers’ compensation premiums. However, some businesses may pay higher rates if their experience differs materially from the average.
“The NCCI filing will lower workers’ compensation premiums for most employers in the state,” said Superintendent of the Maine Bureau of Insurance Bob Carey. “If all insurers fully adopt the decrease, Maine businesses could save approximately $27 million.”
