Oregon proposes 92 cent workers’ comp premium for 2027

Bend, Ore. (KTVZ) --- Oregon employers would pay an average of 92 cents per $100 of payroll for workers' compensation coverage in 2027 under a proposal announced today by the Oregon Department of Consumer and Business Services. The proposal includes an average 2.1% increase in the pure premium rate, marking the second-lowest rate on record for the state.

The proposed change increases the average loaded pure premium cost from 89 cents per $100 of payroll in 2026. The increase is driven by Senate Bill 1519, a 2026 law that modified weekly lost-time wage compensation benefits for injured workers with disabling claims. Despite the proposed increase, the pure premium rate per $100 of payroll will have declined 36.5% between 2018 and 2027.

Under Senate Bill 1519, effective Jan. 1, 2027, the weekly compensation rate for injured workers earning up to 75% of the state average weekly wage will increase to 75%. Compensation for workers earning more than 75% of the state average weekly wage will decrease to 65%. According to the National Council on Compensation Insurance, long-term declines in lost-time claim frequency continue to help offset upward cost pressure from higher medical and indemnity claim severity and benefit changes.

The state's premium assessment rate will remain unchanged at 9.8% of premiums for the sixth consecutive year in 2027. The assessment funds state workplace safety and regulatory programs, including the Workers' Compensation Division, Oregon OSHA, the Workers' Compensation Board, the Ombuds Office for Oregon Workers and the Office of the Small Business Ombudsman for Workers' Compensation. For self-insured employers, assessment rates also remain unchanged from 2026 at 0.1% for individual self-insured employers and public-sector groups and 0.5% for private-sector groups.

Employers and employees also split cents-per-hour-worked assessments. The Workers' Benefit Fund assessment will increase from 1.8 cents to 2.2 cents per hour worked in 2027 to fund return-to-work programs and disability benefits. Under House Bill 4027, a new BOLI Expense Fund component of 0.2 cents per hour worked takes effect in 2027 to help fund the Oregon Bureau of Labor and Industries, bringing the total combined hourly assessment to 2.4 cents per hour.

The proposed rate changes will take effect Jan. 1, 2027, though employers will see changes when renewing their policies. Individual employer costs will vary depending on industry, payroll, claims experience and insurer expense factors. In 2024, Oregon's workers' compensation rates ranked as the 14th least expensive in the nation, according to a biennial study conducted by the department.

Public hearings on the premium assessment and Workers' Benefit Fund assessment are scheduled for Sept. 17 at 3 p.m. and 4 p.m., respectively. Written testimony will be accepted through 5 p.m. on Sept. 24 by the Director's Office of DCBS in Salem.