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Governor Morrisey Announces Proposed Premium Reduction for Workers' Compensation Program

Strategic Insights

— 1 min read

Governor Patrick Morrisey of West Virginia has announced a proposed workers' compensation loss cost decrease of 13.5%, effective January 1, 2026. This reduction is expected to save West Virginia employers $20 million. The announcement follows the National Council on Compensation Insurance's (NCCI) filing with the West Virginia Offices of the Insurance Commissioner. Since the privatization of the workers' compensation program in 2006, the state has experienced a cumulative 84.9% reduction from pre-reform levels, with a total of $501 million in premium savings.

Key Takeaways:

  • The proposed 13.5% workers' compensation loss cost decrease, effective January 1, 2026, is expected to save West Virginia employers $20 million.
  • This reduction is the 21st consecutive year of loss cost decreases in the West Virginia market.
  • The proposed rate decrease for the assigned risk market has also been filed by NCCI.
  • West Virginia ranks 3rd in the nation in workers' compensation loss cost, compared to Ohio (5th), Virginia (8th), Washington DC (9th), Kentucky (11th), Maryland (15th), and Pennsylvania (31st).
  • Since the privatization of the workers' compensation program in 2006, West Virginia has experienced a cumulative 84.9% reduction from pre-reform levels, with a total of $501 million in premium savings.
  • The National Council on Compensation Insurance (NCCI) has been West Virginia's rating and statistical agent since privatization.
  • Governor Morrisey's administration has been focused on attracting more jobs and businesses to the Mountain State, citing the projected savings on premiums as a key factor.

Statistics:

  • Projected savings for West Virginia employers: $20 million
  • Cumulative premium savings since privatization in 2006: $501 million
  • Cumulative loss cost decrease since pre-reform levels: 84.9%
  • Rank of West Virginia in workers' compensation loss cost: 3rd
  • Number of consecutive years of loss cost decreases: 21
  • Rank of other states in workers' compensation loss cost (compared to West Virginia): Ohio (5th), Virginia (8th), Washington DC (9th), Kentucky (11th), Maryland (15th), Pennsylvania (31st)

Sources:

  • Governor Patrick Morrisey announces proposed premium reduction for workers' compensation program
  • West Virginia Office of the Governor
  • National Council on Compensation Insurance
  • West Virginia Offices of the Insurance Commissioner

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