August 31, 2017
Office of the Governor & IMTA --- Beginning January 1, 2018, the state’s proposed workers’ compensation rates will decrease by 8.7%, according to a report from the Iowa Insurance Division. This decrease builds on a July 1, 2017, rate decrease of 3.9%. The decrease will help make Iowa more competitive for attracting business and industry.
During the 2017 legislative session, workers’ compensation reform was passed with House File 518 and the proposed decreases are a direct result. Iowa companies will be able to hire more workers and invest in their employees because of the reduction in business costs.
Iowa Governor Kim Reynolds said, “Over the past decade, Iowa’s workers’ compensation system has mutated into one that benefits trial lawyers at the expense of businesses and workers. Workers’ compensation reform rebalanced the scale to ensure employees are compensated fairly for being injured on the job while ensuring abuses are curtailed.”
Workers’ compensation reform prevents attorneys from taking fees from injured workers when an employer is voluntarily giving benefits, ends the employer’s burden to demonstrate that intoxicated workers incurred injuries as a result of intoxication, and ends an individual’s ability to receive workers’ compensation while also receiving unemployment insurance.
The Iowa Insurance Division recently provided notice of the proposed reduction in workers’ compensation rates in an analysis that can be found by clicking here. The insurance commissioner is currently reviewing the proposed rates to ensure they are justified and must approve them.
If you have any questions regarding the recent changes in workers’ compensation, please contact the IMTA office at 515-244-5193.