NCCI Proposing 0.9% Rate Cut

The National Council on Compensation Insurance is proposing a 0.9% rate cut for Tennessee that would go into effect March 1 if approved. Higher wages, medical fee schedule changes and recent experience are putting upward pressure on rates, according to the NCCI's State Advisory Forum for the Volunteer State. But trends and reduced loss-adjustment expenses more than offset that. Indemnity claim frequency declined 7% in 2013, following reductions of 3% in 2012 and 9% in 2011. Since 1999, frequency is down a cumulative 24.9%. Medical costs account for 69% of benefits in Tennessee, and aver...