Ninth Straight Workers’ Comp Rate Cut Announced, but Delaware Still Above National Average

Delaware’s ninth straight rate reduction highlights a continuing success story in controlling costs for businesses. Yet with rates still above the national average—and questions about how sustainable the savings model is over time.

Delaware’s ninth straight rate reduction highlights a continuing success story in controlling costs for businesses.

DOVER, Del. (Oct. 23, 2025) — Delaware Insurance Commissioner Trinidad Navarro on Thursday announced that workers’ compensation insurance rates will decrease for the ninth consecutive year, effective Dec. 1, marking another win for businesses but raising questions about the long-term effects of how those savings are achieved.

The Delaware Compensation Rating Bureau’s latest filing, confirmed by independent actuaries and approved after a public hearing, calls for an average loss-cost reduction of 11.6 percent in the voluntary market and 9.08 percent in the residual market, often considered the insurer of last resort. Actual savings will vary by policy.

“For nearly ten years, my administration has been able to approve rate decreases that help local businesses, and can attract new companies and jobs to Delaware,” Navarro said. “Delaware’s businesses used to pay some of the highest workers’ compensation premiums in the country, but bold policy changes have been successful in addressing that problem.”

Workers’ compensation insurance covers medical treatment and wage replacement for employees injured on the job. The new rates do not reduce benefits paid to workers but are expected to lower premiums for employers statewide.

Delaware Still Above National Average

Despite nine straight annual decreases, Delaware’s rates remain about 6 percent higher than the national average, ranking the state as the 23rd most expensive for coverage according to a national insurance tracking firm ( Workers Compensation Rates in Delaware). Just three years ago, Delaware ranked 7th, indicating substantial improvement but still lagging behind many peers.

Rates are set through data collected by the National Council on Compensation Insurance (NCCI), which reviews claims, payroll, and class-code data before recommending rates to the Delaware Department of Insurance. Insurers can apply credits or debits up to 25 percent based on each employer’s safety record and claims history.

Safety Programs and Savings

At the end of 2024, 932 employers participated in the department’s Workplace Safety Program, saving nearly $4.9 million through inspections and compliance measures. Businesses can apply for the program up to seven months before policy renewal.

Policy Roots and Unintended Consequences

Observers credit Delaware’s steady decline in premiums largely to House Bill 373, a 2014 reform that capped medical reimbursement rates for workers’ compensation cases. The law aimed to control costs and stabilize the insurance market, and many agree it succeeded in lowering premiums.

But critics warn that the law may have side effects.

“It’s good news that prices are going down—that helps many businesses right now,” said Charles Copeland of the Caesar Rodney Institute. “But it’s also important to ask how the prices went down. The 2014 law limits how much doctors and hospitals get paid for workers’ comp treatment. That probably played a big part in driving rates lower year after year. The concern is that if reimbursements stay too low, some doctors may stop taking these cases—leading to longer wait times or forcing injured workers to travel farther for care.”

While no statewide data yet tracks treatment delays, Copeland and others say policymakers should monitor access issues closely to ensure savings for employers do not come at the expense of timely care for employees.

The Bottom Line

Delaware’s ninth straight rate reduction highlights a continuing success story in controlling costs for businesses. Yet with rates still above the national average—and questions about how sustainable the savings model is—stakeholders agree the next challenge is balance: keeping premiums affordable while maintaining fair compensation and access to care for injured workers.

Editor’s Fact Box: How HB 373 Changed Workers’ Comp in Delaware

What It Is:
House Bill 373, enacted in 2014, overhauled Delaware’s workers’ compensation medical fee schedule. It capped how much doctors, hospitals, and clinics can be reimbursed for treating work-related injuries.

Why It Was Passed:
In the early 2010s, Delaware ranked among the top five most expensive states for workers’ compensation. Lawmakers sought to curb rapidly rising medical costs, which made up more than 60% of claims expenses at the time.

What It Did:

• Tied reimbursements to Medicare rates plus a fixed percentage markup.

• Required the Department of Labor to update fee schedules regularly.

• Established medical cost containment committees and billing review procedures.

Results:

• Workers’ comp insurance premiums have fallen for nine straight years.

• Delaware dropped from 7th to 23rd most expensive state for coverage.

Concerns:

• Some doctors and specialists say low reimbursements make it harder to justify accepting workers’ comp patients.

• Possible delays in care or limited treatment options could emerge over time.

In Summary:
HB 373 helped reduce costs for businesses but may be creating new access challenges for injured workers—a trade-off that could shape future legislative debate.

Staff Writer

Delaware LIVE collaborates with a network of professional journalists to cover a diverse range of stories across various fields.  Staff Writers include experienced journalists and young professionals.  If you have questions, please feel free to contact editor@delawarelive.com or our publisher, George D. Rotsch at George@Delawarelive.com