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Iowa premium reduction revives workers’ compensation debate

News

September 18th, 2017 by Ric Hanson

DES MOINES, Iowa (AP) – The Iowa governor and the organization that sets workers’ compensation rates are disputing whether a new law influenced a recent rate reduction in premiums for employers. The Des Moines Register reports the National Council on Compensation Insurance announced an 8.7 average premium reduction for Iowa employers that’ll begin January 2018. In a statement last month, Gov. Kim Reynolds said the decrease is a “direct result” of reforms that took effect in July.

The Legislative Services Agency says the legislation cuts benefits for injured workers, makes it more difficult for injured workers to claim lump sum payments and limits attorney legal fees. Council officials say the legislation played no part in the lower rates. They say the reduction was based on data from premium years 2014-15 and a decrease in claims.