Posted at 12:43 p.m., Thursday, October 26, 2006
Hawai'i workers' compensation costs drop, state says
Advertiser Staff
The cost of workers' compensation premiums in Hawai'i has dropped signficantly during the past four years, the state Department of Labor and Industrial Relations said todayThe department also reported that workers' compensation premiums have dropped to their lowest prices since 2003 for employers insured through Hawaii Employer Mutual Insurance Company, the state's largest workers' compensation carrier.
In a ranking compiled by the State of Oregon's Department of Consumer & Business Services on how the nation's 50 states compare in terms of employer spending on workers' compensation premiums, Hawaii dropped from third highest in 2002 to 15th highest in 2006, according to a news release from the DLIR.
This trend correlates with data provided by HEMIC at its annual governance meeting, the DLIR said. In 2003, Hawaii businesses insured by HEMIC on average paid $5.36 for every $100 dollars of payroll for workers' compensation. In 2006, on average those businesses are now paying $4.49 for every $100 of payroll.
"This trend is a direct result of the decrease in injuries filed and the internal changes initiated by the Department of Labor and Industrial Relations," said Bob Dove, HEMIC president and chief executive. "Many of those initiatives we have experienced are an improved administrative process, a level playing field when dealing with employees and employers, unbiased decision-making, and prompt hearings and resolution of claims that are heard at DLIR."
Since 2002, workers compensation claims have steadily decreased, according to the DLIR. In 2003, Hawaii employees filed 28,668 claims, a reduction of 1,089 from 29,757 in 2002. In 2004, 26,321 claims were filed, a reduction of 2,347 or 8.19 percent from the previous year. In 2005, there was a slight increase in injuries as 28,018 claims were filed. However, it should be noted that since December 2002, over 60,000 new jobs have been added to the economy, with a large portion of those jobs in the construction industry.
