Insurance Department denies workers' comp increase

The state Department of Insurance has denied a proposed increase in workers' compensation premiums that, for the time being at least, spares business owners from a second double-digit rate increase in 12 months.

But the agency already has indicated what it views as an acceptable increase, meaning the relief is unlikely to last long.

The National Council on Compensation Insurance, an industry-backed organization that makes recommendations on workers' comp premiums in South Carolina and 35 other states, sought a nearly 24 percent average increase. The council's figures are a benchmark that private insurers use to set prices.

In a letter this week to the group, the Insurance Department denied the request, calling the proposed increase "excessive." But the department also said it would grant an 11 percent increase.

Workers' comp rates affect the bottom line of thousands of business owners across the state. Any South Carolina employer with four or more workers is required by law to buy the insurance, which covers medical costs and some wages for workers who are injured on the job.

Amy Quinn, an NCCI spokeswoman, said Friday that the organization will appeal the decision to the Administrative Law Court in Columbia. In the meantime, she said, her group plans to meet with the state Consumer Advocate's office in an effort to find some common ground.

"We've laid the groundwork for some discussions," Quinn said.

Officials for the Consumer Advocate said they have informally asked the council further questions regarding the rate filing and are still waiting for answers.

Based on its own review, the state Department of Consumer Affairs said it agrees with the Insurance Department's decision. The 24 percent request "clearly was excessive," said Hana Williamson, an attorney with Consumer Affairs.

"What we don't know is the number we would consider acceptable," Williamson said.

If the 24 percent rate increase had been approved, the effective date would have been Dec. 1, exactly a year after South Carolina employers were hit with an 18.4 percent increase.

Reach Peter Hull at 937-5594 or phull@postandcourier.com.