Workers’ Comp Rates for Healthcare Workers 2025
In 2025, the average workers' comp rate for healthcare workers is $1.33 per $100 of payroll plus taxes and fees. Healthcare workers are exposed to unique risks, and workers' compensation insurance ensures coverage for work-related injuries and illnesses.
What is Workers' Comp Premium for Healthcare Workers based on?
Workers’ comp premiums for healthcare providers are determined by several factors:
Your Industry
Workers' comp premiums depend on the risks associated with your industry. Simply put, the higher the risk, the higher the premium.
The National Council on Compensation Insurance (NCCI) assigns a 4-digit class code to each job or industry, helping determine the likelihood and severity of injuries based on historical data.
Industries with higher injury rates—like construction—tend to have higher workers' comp rates, while office jobs usually have lower rates.
In healthcare workers’ comp, the type of work significantly impacts premiums. For example, hospitals (class code 8833) generally have higher premiums than outpatient medical practices (class code 8832) due to the greater physical demands.
Hospital workers face more risks, including patient handling, medical equipment, and infection exposure, while workers in outpatient practices, such as doctors' offices, dentists, and therapists, face fewer physical hazards.
Class code 8824 (nursing homes, assisted living) has patient lifting risks, which increases the rate. Class code 8835 (home healthcare) also involves lifting, but the rate is higher due to the home environment, which often lacks proper equipment. Home healthcare workers may also do light housework or drive clients, adding further risks.
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Your Payroll
Premiums are calculated based on payroll. The larger the payroll, the higher the premium, as there's a greater chance of work-related injuries.
Your Claims History
A healthcare provider's claims history impacts their premium. If you have a track record of workplace injuries, your premium could be higher due to increased medical expenses.
How are Workers' Compensation Premiums calculated for Healthcare Workers?
Here's a formula you can use to calculate your workers' compensation premium:
Payroll divided by 100 x Rate = Premium
Step 1: Calculate Payroll
The payroll refers to the total amount paid to your healthcare staff for the year. Make sure to include all employees in the total payroll figures.
To estimate the annual payroll for an employee, take their hourly wage, multiply it by the hours they work each week, and then multiply by the number of weeks they work in the year.
Divide the payroll figure by 100 to obtain the Payroll Per $100. This is how much insurance you have to pay for every $100 of payroll.
Step 2: Determine Rates
Healthcare workers are classified using unique class codes based on the setting they work in. Here are some example rates for healthcare workers:
- Physicians, Clerical, Dentists, Health Clinics, Urgent Care, Therapists, Psychologists: $0.27
- Hospital Employees: $0.89
- Group Homes: $1.66
- Veterinary: $0.93
- Retirement Living Centers, Assisted Living Facilities, Nursing Homes: $1.96
- Home Health Care: $2.01
Step 3: Apply the Formula
Once you know your payroll and class code, you can apply the formula. For instance, if your healthcare business has a payroll of $400,000, and your rate is $0.89 (for hospital professional employees), the calculation will be:
$400,000 / 100 x $0.89 = Premium
Example Calculation for Healthcare Workers' Comp Premium
Imagine you own a nurse staffing agency in Oklahoma. There are two owners, two office employees, and 12 healthcare workers who take shifts at various nursing homes. The business owners are excluded from coverage. To ensure your business and employees are protected, you need a workers' comp policy for your workers.
Here’s how to calculate your premium:
Calculate Payroll
Note: You should combine the payroll of employees who do the same type of work.
- The total payroll for the office employees (2 employees) is $30,000 x 2 = $60,000.
- The healthcare workers’ payroll totals $400,000.
Find your Workers' Comp Rates:
- Your office employees fall under class code 8810 with a rate of $0.12 per $100 of payroll.
- Your healthcare workers fall under class code 8824 with a rate of $2.07 per $100 of payroll.
Apply the Formula
For the office employees (class code 8810):
- Total Payroll is $60,000
- $60,000 (payroll) ÷ 100 x $0.12 (industry rate) = $72
For the healthcare workers (class code 8824):
- Payroll = $400,000
- $400,000 (payroll) ÷ 100 x $2.07 (industry rate) = $8,280
Combine both for a total annual premium: $72 (office) + $8,280 (healthcare workers) = $8,352.
This is an estimate and could vary based on additional factors like state regulations and discounts.
Does it matter where I buy a Policy from?
Yes, where you buy your policy matters! It's not just about finding the cheapest option; it’s about finding the right coverage for your business.
You want an insurance provider that not only offers competitive rates but also provides reliable coverage when your healthcare workers need it most.
Look for providers with:
- Reputation: Check reviews and ratings to ensure they handle claims efficiently
- Financial Strength: Choose a provider with strong financial stability
- Customer Service: Good customer service is essential, especially in the event of a claim
- Industry Expertise: Choose a provider experienced in healthcare insurance
Benefits of Workers' Comp for Healthcare Workers
- Medical Expenses: Covers medical treatment for injuries or illnesses
- Lost Wages: Compensates healthcare workers for time off due to injury or illness
- Death Benefits: Provides financial support to surviving family members in case of fatal injuries
- Protection from Lawsuits: Protects your business from legal actions by injured employees
How can I make Workers' Comp Cheaper?
There are several ways you can lower your workers' comp premiums for healthcare professionals:
Implement a Safety Program
Healthcare workers face unique hazards, including slips, trips, falls, needle sticks, repetitive motion injuries, and lifting and handling injuries. Implementing a safety program can help reduce the risk of injury and lower your premiums.
Some tips for healthcare safety:
- Slips, Trips, and Falls: Keep hallways clear and wear non-slip footwear.
- Needle Sticks: Use safe sharps, such as retractable needles, and dispose of sharps properly.
- Repetitive Motion Injuries: Encourage regular breaks and proper ergonomics.
- Lifting and Handling Injuries: Train staff on proper lifting techniques and use lifting devices.
Ensure Correct Class Codes
Double-check that your employees are classified correctly. An error in class codes could cost you hundreds, or even thousands, extra per year.
Ask about Premium Discounts
Many insurance providers offer discounts for maintaining a safe work environment. Ask your provider if you are eligible for any discounts based on your safety program or claims history. Don’t be afraid to ask – the worst that can happen is being told no.
Work on Reducing Claims
The fewer claims your business has, the lower your premiums will be. This is a long-term strategy, but effectively managing and preventing injuries can significantly reduce your experience modification rate (ExMod) and lower your costs.
Ready to Get a Quote?
Use our online quoter to get an exact estimate for your workers' comp premium, tailored to your healthcare business. It’s quick, easy, and could save you more than you think.
Note: The information provided in this blog is intended for general informational purposes only and is not a substitute for professional legal or insurance advice. Laws and regulations regarding workers' compensation insurance are complex and vary by state and by specific circumstances. Therefore, readers are encouraged to consult with a qualified legal or insurance professional to obtain advice with respect to any particular issue or problem they might have.
Mordechai Kamenetsky, co-founder and lead agent of Kickstand, is recognized as an expert in workers' compensation. He is passionate about helping small businesses manage risks and lower their workers' comp costs. In his articles, he educates readers and clients on the intricacies of workers' comp insurance.
Healthcare businesses face a lot of risks every single day, and that includes nurse staffing agencies. Because of these risks, it’s crucial to have workers’ comp for staffing agencies. This insurance will protect your employees while protecting your agency in the event of a work-related illness or injury.
