What the 2019 Rate Schedule Looks Like for GPs
The 2019 workers' compensation rate schedule is published annually by each state's workers' compensation board. For general practitioners (GPs), the rates are set per thousand dollars of payroll and are divided into two main classes: Class 1 (general medical services) and Class 2 (specialty medical services). The schedule lists each class with a rate factor, which is multiplied by the state's base rate to arrive at the premium per $1,000 of payroll.
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Class 1 – General Medical Services
Class 1 is the primary rate for most GPs who provide routine medical care. The 2019 rate factor for Class 1 ranged from 0.45 in states with lower risk profiles (e.g., Vermont) to 1.20 in higher‑risk states (e.g., Texas). The base rate, which is the state's minimum cost of covering a $1,000 payroll, was $18.50 in California and $12.30 in Colorado.
Class 2 – Specialty Medical Services
Class 2 applies to practitioners who offer specialized services such as dermatology or orthopedics. For a GP offering only primary care, Class 2 is typically irrelevant. However, if a GP offers a specialty clinic, the rate factor climbs to 1.10–1.35, reflecting the higher claim severity and frequency associated with specialty procedures.
Factors That Move the Numbers
- Claim History – A GP's own claim history and the frequency of claims filed by other medical professionals in the same state influence the rate factor.
- Payroll Size – Larger payrolls dilute the risk per employee, often resulting in a slightly lower effective rate per dollar of payroll.
- State Regulatory Changes – Adjustments to the state's base rate or changes in benefit costs directly shift the premium.
- Industry Trends – Rising medical malpractice costs or increased litigation can push rate factors upward.
Calculating Your 2019 Premium
To estimate the 2019 premium for a GP with a $200,000 annual payroll in a state where the Class 1 base rate is $18.50 and the rate factor is 0.90, the calculation is simple:
| Item | Value |
|---|---|
| Payroll | $200,000 |
| Base rate per $1,000 | $18.50 |
| Rate factor | 0.90 |
| Effective rate per $1,000 | $16.65 |
| Number of $1,000 units | 200 |
| Estimated premium | $3,330 |
Comparing States in 2019
States differ significantly in how they structure their schedules. The table below shows a snapshot of Class 1 factors and base rates for five representative states in 2019.
| State | Rate Factor (Class 1) | Base Rate ($ per $1,000 payroll) |
|---|---|---|
| California | 1.10 | 18.50 |
| Texas | 1.20 | 15.00 |
| Vermont | 0.45 | 12.30 |
| New York | 0.95 | 17.20 |
| Florida | 0.80 | 14.80 |
What to Do With This Information
Knowing the exact 2019 rates helps a GP compare insurance quotes, negotiate with carriers, and assess the impact of potential practice changes on premiums. For instance, adding a specialty clinic could push the practitioner into Class 2, raising the rate factor and overall cost. Conversely, maintaining a clean claim history and investing in safety protocols can keep the rate factor low.
Because rates are updated annually, practitioners should verify the current schedule each year and adjust payroll projections accordingly. Working with an insurance broker familiar with medical‑practice workers' compensation can uncover state‑specific discounts or incentive programs that reduce the overall cost.