The voluntary market rates will rise 0.6%, while the assigned risk pool will see a 4.1% increase.
State Insurance Commissioner Wayne Goodwin announced the rate increases in November. He noted that the increases were well below the 1.2% voluntary market and the 5.5% assigned risk increases insurance carriers had sought. Goodwin claims tough negotiations saved state employers approximately $7 million.
Last year, Goodwin ordered a 9.6% decrease to voluntary market premiums and no change to the assigned risk.
Even the more modest increases have drawn the ire of some employer advocates.
The National Federation of Independent Businesses was quick to criticize the hikes, issuing a statement that said, “Our members tell us they’re still struggling to recover from the recession, and a tax increase is going to make recovery even harder for them. We need our state and elected officials to look for ways to help our small, family businesses grow and create jobs. Higher taxes mean there’ll be less money for them to run their businesses.”