Agents should flag any account with average medical costs per claim over $10,000 for a renewal estimate review, because NCCI’s 1.0% medical price growth could push those accounts higher. NCCI’s latest data shows a 1.0% rise in medical price growth for June, the first increase in over a year, signaling that medical costs for workers’ compensation claims are starting to climb again.
From my perspective as a national WC PM, I’m watching for accounts that have historically high medical costs and seeing how the 1.0% bump might affect their loss ratios. When this hits agent desks, I’d ask: have you updated your renewal estimates to reflect the new baseline?
Why a 1.0% bump matters for your book
Medical price growth is a key lever in loss costs. A 1.0% uptick translates to each claim costing 1.0% more than the prior month. For accounts with already high medical costs per claim, that percentage can lead to a noticeable premium bump. The NCCI data marks this as the first rise in over a year, suggesting a new baseline rather than a one‑off spike.
High‑medical‑cost accounts are the most exposed
Industry experts have flagged high medical costs as a top challenge for workers’ compensation in 2026. They point out that accounts averaging more than $10,000 per claim are especially vulnerable to price‑growth shocks.
What you should do now
- Identify accounts with an average medical cost per claim of $10,000 or more. Use your CRM or underwriting system to pull those figures.
- Flag those accounts in your renewal workflow. Add a note or a custom field that indicates “High‑Medical‑Cost – Review Needed.”
- Re‑evaluate the renewal estimate for each flagged account. Consider whether the 1.0% medical price growth warrants a higher premium, or if you can mitigate the impact with a cost‑control strategy (e.g., enhanced case management, return‑to‑work programs).
- Document your rationale in the file. If you decide to adjust the premium, note the NCCI 1.0% figure and the account’s medical cost profile as the basis for the change.
- Communicate with the underwriter or carrier. Provide the data and ask whether the carrier’s pricing model will automatically incorporate the 1.0% increase or if you need to submit a manual adjustment.
Why this matters for your book
By proactively flagging high‑medical‑cost accounts, you avoid surprises at renewal time and demonstrate to carriers that you’re monitoring market trends closely. It also positions you to negotiate better terms or to recommend cost‑control measures that can keep premiums competitive while protecting the carrier’s loss ratio.
What this means for your placements
In the next renewal cycle, you’ll likely see a modest uptick in premiums for the flagged accounts. If you’ve already identified and documented the impact, you can present a clear, data‑driven case to carriers, potentially smoothing the approval process. For accounts that remain below the $10,000 threshold, you can maintain current rates, giving you a competitive edge in a soft market.
Sources:
- Risk & Insurance – Medical price growth slows to 1.0% in June, NCCI reports
- Risk & Insurance – 10 workers’ comp challenges experts are tackling this year
Sources
- Risk & Insurance (2026-08-05)
- Risk & Insurance (2026-08-05)
Tags: rates, medical costs, renewal