Office of the Governor

500 E. Capitol Ave.

Pierre, SD 57501

(605) 773-3212

www.state.sd.us

FOR IMMEDIATE RELEASE: Tuesday, May 3, 2005

CONTACT: Kelly Thompson, (605) 773-3311

S.D. workers’ compensation rates to decrease

PIERRE, S.D. - Gov. Mike Rounds announced today that because of efforts to improve workplace safety in South Dakota, workers’ compensation rates for most employers in the state will decrease 1.3% effective July 1, 2005.

“South Dakota employees are once again to be commended for continuing to improve workplace safety,” said Gov. Rounds. “Indemnity and medical trends decreased moderately despite rising medical costs.”

The filing by the S.D. Department of Revenue and Regulation, Division of Insurance affects all employers that purchase workers’ compensation insurance with the exception of those in the assigned risk pool. Overall assigned risk policies will increase 6.1% due to higher costs in that market.

According to Insurance Division Director Gary Steuck, the approved 1.3% decrease to advisory loss costs is an indication of stability in South Dakota’s workers’ compensation market. While loss costs may generally be down 1.3%, the final rate that an employer may get can vary from one insurance company to another. Steuck says approximately 243 insurers file their final rate in worker’s compensation so it’s in an employer’s best interest to shop around to determine which insurance companies offer the best rates and can best fit their insurance needs.

For more information on workers’ compensation rates, contact the S.D. Division of Insurance at (605) 773-3563.

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