Hawaii Division of Insurance Approves 8.2% Increase in Cost Rates for Workers’ Compensation Losses | woodruff sawyer

The National Council on Workers’ Compensation Insurance, Inc. (NCCI) recently requested an 11.2% average increase in the workers’ compensation (WC) loss cost rate for 2022, subject to approval by the Hawaii Division of Insurance. After reviewing NCCI’s application, the Hawaii Division of Insurance approved an average +8.2% change in WC loss cost, effective January 1, 2022. 2021 Loss Cost Increase Trend has been carried forward to 2022 and is largely attributable to rising average claims costs and medical-only claims, while the combined ratios remain relatively constant. The impact will vary across different rating classifications, but the following information provides more detail on specific class codes and industry segments.

Hawaii's lost cost filing in January 2022 was 8.2% overall
Source: NCCI Hawaii State Advisory Resources, November 2021

January 2022: Change in workers’ compensation rate for specific construction classifications

Why are toilet fees going up?

While most NCCI states are experiencing reductions in cost level/loss rate, Hawaii is experiencing an increase in cost loss rates for the second year in a row. The impact of past WC decisions makes it more difficult to deny a claim compensation and continued treatment, leading to increases in the total cost of the claim. Many of our operator partners agree that costs due to precedence established by previous decisions is behind these increases.

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