State of the States May 02, 2025

National – The National Association of Insurance Commissioners (NAIC) released its 2023 Report on Profitability by Line and State. Key highlights include an increase in total premiums earned and a rise in return on net worth from 4.8% in 2022 to 7.9% in 2023 for the property and casualty insurance market. 

WCRI released a new set of CompScope™ Benchmarks, 2025 Edition, which monitors workers' compensation costs and benefits across 18 states. These states include Arkansas, California, Delaware, Florida, Illinois, Indiana, Iowa, Kentucky, Louisiana, Massachusetts, Michigan, Minnesota, New Jersey, North Carolina, Pennsylvania, Texas, Virginia, and Wisconsin. The studies found that total costs per claim rose between 2% and 14% per year from 2021 to 2023. 

Arizona – HB 2032 was sent to the Governor this week. As a reminder, HB 2032 would exempt noncompliant employers from being placed in the state’s assigned risk plan. Specifically, it states that employers are exempt from this plan if they knowingly fail to meet reasonable health and safety standards or fail to adhere to an audit.

Montana– SJ33/ LC 632 passed the Senate and is set for a second reading in the House. This joint resolution proposes an interim study on the prescription drug supply chain. The study will explore the structure and dynamics among stakeholders, evaluate factors impacting pharmacy sustainability and drug affordability, and identify strategies to reduce costs and improve patient access, particularly in rural and underserved areas. 

HB 740 proposes changes to the regulation of pharmacies and pharmacy benefit managers (PBMs). The bill mandates that pharmacies receive reimbursement rates above the national average for drug acquisition costs, with dispensing fees aligned to Medicaid rates. It also restricts auditing practices, enhances pricing transparency by requiring PBMs to disclose their pricing sources, and prohibits PBMs from mandating the use of affiliated pharmacies. Additionally, it allows patients using mail-order pharmacies to obtain prescriptions locally under certain circumstances. Overall, the bill aims to improve the operational and financial conditions for pharmacies and enhance patient access to medications. 

SB 394 was sent to the Governor late Friday afternoon. SB 394 would allow police, firefighters, and emergency medical care providers to file workers’ compensation claims for stress.  

Virginia – The Virginia Workers’ Compensation Commission announced that the maximum and minimum compensation rates will increase starting July 1. According to the Commission, the maximum compensation rate will be $1,463.10, an increase of $53.10 from the 2024 rates. The minimum compensation rate will be $365.78, up by $13.25 from 2024. Additionally, the Commission announced that the cost-of-living adjustment (COLA) rate will decrease to 2.85% on October 1, down from the current rate of 3.5%. To learn more about the historical rates and additional information, click here. 

West Virginia – HB 2797 was enacted this week by West Virginia’s Governor. As a reminder, HB 2797 specifies which medical professionals are authorized to diagnose post-traumatic stress disorder (PTSD) as a compensable injury or disease under workers’ compensation. The bill aims to ensure that only qualified and licensed professionals can make such diagnoses, maintaining the integrity of workers’ compensation claims.

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