02/06/2008
Increased losses experienced by Arizona employers, rising medical costs for treatment of industrial injuries and a decade-long lag in a benefit increase to injured workers have resulted in hikes in workers' compensation rates.
The first increase, a result of Arizona's loss experience and rising medical costs for treatment, became effective Oct. 1, 2007. The Arizona Department of Insurance approved an average 4.5 percent increase.
A second increase, an average 4.1 percent increase effective Jan. 1, resulted from the 2007 legislation that increased the maximum monthly indemnity compensation limit for disabled workers from two-thirds of $2,400 to two-thirds of $3,000. Next year, this limit rises to two-thirds of $3,600. In 2010, the limit will be indexed and tied to the state's average wage. Prior to the Jan. 1 change, Arizona ranked 49th in the nation in benefits to injured workers.
