Kentucky worker's compensation carrier requests retroactive premiums, worrying providers
One of Kentucky's largest workers' compensation carriers is asking the state to let it collect $49 million in retroactive premiums from employers to deal with a projected budget shortfall and boost its reserves. Nursing home providers are subject to the retroactive pay, including Christian Church Homes of Kentucky and Congregation of Divine Providence in Melbourne.
AIK Comp provides employers with insurance to cover doctor bills of injured workers. The carrier said it wants to assess employers an added premium for the years 1998 through 2001, with the bulk of the costs put on employers that have the highest percentage of claims. If AIK doesn't get that money, it said, it would stop offering new coverage. Some employers estimate the proposed surcharge at $1,000 per employee.
About 125 employers and insurance agents are expected to attend a public hearing today at the Office of Workers Claims headquarters in Frankfort about AIK's request for additional premiums.