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Employer Costs and Assessments Premiums are not the only costs to employers (and employees) for workers' compensation coverage. Two other substantial costs are premium assessments and the Workers' Benefit Fund assessment. Premium assessments are paid by insurers but are recoverable from employers. The Workers' Benefit Fund assessment (cents-per-hour) also includes employee contributions.
Premium assessments fund those operations of the Department of Consumer and Business Services related to workers' compensation. A declining portion of assessment revenues is spent on rehabilitation programs for injured workers, including reimbursement of time-loss (TTD) payments while they are in authorized training programs. Figure 17 shows the
total cost (per $100 of payroll) of workers' compensation coverage to the
average Oregon employer. Obviously, the bulk of the costs go toward the
insurance premium. The premium dollar amount shown here is the fully-loaded
rate as derived in the latest Oregon Workers' Compensation Premium Rate Ranking
Report, which uses 50 NCCI class codes (representing roughly two-thirds of the
total Oregon payroll) to calculate an overall average rate faced by Oregon
employers. As discussed above, premium assessments and the WBF assessment are
additional costs faced by employers. These two amounts are also shown in Figure
17 for each year. |