S.D. Workers' Compensation Rates to Decrease for Most Employers

Press Release

Gov. Mike Rounds announced today that most employers in the state should see a small decrease in workers' compensation rates effective July 1, 2007. This is because of the continuing pattern of less frequent on the job injuries while the costs of treating injuries continue to escalate.

"I commend South Dakota employers for their commitment to improving workplace safety," said Gov Rounds. "Although medical costs are rising, their efforts to diminish the number of on the job injuries are making a positive impact."

According to Merle Scheiber, director of the Division of Insurance in the state Department of Revenue and Regulation, there are a number of ways employers can control their workers' compensation costs. Safety reviews are available to employers through their insurance carrier as a way of controlling their workers' compensation costs, and premiums can be reduced by purchasing a workers' compensation policy containing a deductible. Another good tool for employers is an effective first aid program designed to appropriately treat minor injuries right away in order to reduce the likelihood of the injury evolving into a more serious medical problem.

The overall increase for voluntary loss costs, the basis on which individual insurance companies calculate their rates for the large majority of employers, will go down 1 percent. Those employers who have not been able to find coverage in the open voluntary market and are in the assigned risk plan will have their rates increased by 4.9 percent this year.

Anyone with questions regarding the workers' compensation rating is encouraged to contact the South Dakota Division of Insurance at (605) 773-3563. Additional information is also available for both employers and those in the workers' compensation industry on the division's Web site at www.state.sd.us/drr2/reg/insurance.

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