Workers' comp costs down in NH

The state Insurance Department has accepted a proposal for much lower workers’ compensation insurance next year. 

The proposal, submitted by the National Council on Compensation Insurance (NCCI), is lower because injured workers got back to work quicker last year.  That meant employers paid less partial wages to injured workers, also known as indemnity payments.

The cost of medical claims for injured workers did not go down last year.  According to NCCI, medical claims account for over 70% of workers’ compensation payments in the state.  That is much more than the regional average of 48%. 

New Hampshire still has some of the highest workers’ compensation costs in the U.S., due to those high medical costs.

One possible solution to lower workers’ compensation costs is imposing a fee schedule for medical treatments in workers’ compensation cases.  According to NCCI, most states limit how much medical providers can charge in workers’ compensation cases.

Opponents argue that price-fixing will prevent the free market from naturally lowering workers compensation costs over time.  Other opponents point out that New Hampshire medical costs may be higher because the quality of care is higher; after all, injured workers got back to work faster last year.

In 2015 and 2016 the state legislature considered, but ultimately rejected, proposals to set rates for medical services in workers’ compensation cases.

Do you have an opinion on workers’ compensation in New Hampshire?  Let us know in the comments.