Did you know that for accident year 1999, Idaho now ranks third worst in the country in results with a combined loss ratio of 153%, according to the National Council of Compensation Insurance? In addition, the NCCI has recently announced that the countrywide 1999-accident year combined ratio is now 134%.

What does this mean? To make it simple, on average, for every dollar in premium paid in Idaho for workers compensation insurance, insurance companies are paying out $1.53 before investment income. The actual loss for the companies will not be $.53 as they are able to make up some of the loss with investment gain. They will however, not make up anywhere near the $.53 in loss. The consequences are now becoming evident with insurance carrier insolvencies, carrier withdrawals from the market, deteriorating loss ratios, rating downgrades and decreases in investment income.

One reason for the significant deterioration in the overall results for our state is based, in part, on the fact that Idaho rates have declined an estimated 35% over the last 5 years while medical expenses and the claims costs associated with on-the-job injuries and work-related illness have increased significantly. In addition, the lower premium levels due to these rate decreases and other factors have reduced the premium threshold to hold individual losses, which has produced significant increases in individual experience modification factors.

As a result of this rapidly changing market, the Idaho AGC has partnered with one of the states leading providers of workers' compensation insurance, WorkCare Northwest. WorkCare provides coverage through Everest National Insurance Company, who enjoys an A+ Excellent rating from A.M. Best, the insurance industries key financial rating bureau.

This new program will focus on the reduction in the overall costs associated with on the job injuries and work related injuries. This will be achieved through a unique approach to loss prevention and risk management, claims management and medical intervention and return to work strategies.

WorkCare Northwest has demonstrated a significant commitment to Idaho and the construction industry. WorkCare continues to enhance its service capabilities. These enhancements include:

• Toll free (800) claims reporting program, which assist employers in the claims reporting process.
• State of the art medical bill review program generating significant reductions in medical bills.
• Prescription Card program for covered injured workers to obtain meds without incurring out-of-pocket expense and generating 20% savings from participation pharmacies.

The Idaho AGC/ Workcare Northwest program is currently available through select Independent Agents and Brokers. For more information, contact your independent agent or WorkCare Northwest at (208) 342-6100.