Oregon Workers’ Comp Costs to Drop for 10th Year

Oregon employers will pay less for workers’ compensation coverage on average next year, according to the Oregon Department of Consumer and Business Services.

The DCBS said the decline in costs marks 10 years of average decreases in the pure premium rate.

The department attributed the drop to the success of Oregon’s workers’ comp system, which includes programs to control costs, maintain good worker benefits, ensure employers carry insurance for their workers, and improve workplace safety and health.

Employers, on average, will pay 93 cents per $100 of payroll for workers’ comp costs in 2023, down from 97 cents in 2022, under a proposal by DCBS. That figure covers workers’ compensation claims costs, assessments, and insurer profit and expenses.

The pure premium rate will drop by an average 3.2% under the proposal.

The reduction in costs is due to an improvement in loss experience and loss development patterns in Oregon, according to the National Council on Compensation Insurance.

Employers’ total cost for workers’ compensation insurance includes the pure premium and insurer profit and expenses, plus the premium assessment. Employers also pay at least half of the Workers’ Benefit Fund assessment, which is a cents-per-hour-worked rate.

The decrease in the pure premium will be effective Jan. 1, 2023, but employers will see the changes when they renew their policies in 2023.