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You are here: www.tdi.texas.gov . news . 2016 . dwc1192016

November 09, 2016

Workers’ compensation rates in Texas among nation’s lowest

Texas has some of the nation’s most affordable workers’ compensation coverage, according to a 2016 study, which found that the Lone Star State had the 10th lowest rates among all states.

The study by the Oregon Department of Consumer and Business Services ranks all 50 states and Washington, D.C., based on premium rates that were in effect January 1, 2016. Texas, with premiums at $1.45 per $100 of payroll, ranked No. 10, four spots higher than the previous study in 2014.

“It’s great to see evidence of the progress we’ve made in affordability,” said Texas Commissioner of Workers’ Compensation Ryan Brannan. “Lower injury rates, better return-to-work outcomes for injured employees, and reduced medical costs per claim are a big factor, but the results of the Oregon study are also proof that we’re becoming more efficient, proactive, and transparent.”

Texas’ workers’ compensation premium rates are about 21 percent lower than the median for all states, according to the study. California has the most expensive rates in the nation, at $3.24 per $100 of payroll. Rates in Texas are also favorable compared with other high-population states, such as Florida, Illinois, and New York. North Dakota had the least expensive rates, at 89 cents per $100 of payroll.

“The Texas workers’ compensation system has been a model for other states in many ways,” Brannan said. “And we’re going to keep improving. We’re working on several efforts to keep our costs low. We’re cutting data storage costs by digitizing records, reducing prescription drug costs with a closed formulary, and eliminating waste and fraud with a new in-house fraud unit. We’ve also launched a statewide effort to streamline the dispute resolution process.”

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Last updated: 11/09/2016

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