Texas Workers’ Comp Rates Are Decreasing in July 2025

Starting in July 2025, many employers in Texas can expect to see lower costs for workers compensation insurance. The state has approved new rates that reflect a drop in workplace injury claims and steadier medical expenses. While the change may bring financial relief for businesses, it also brings up important questions about how these updates might affect coverage, claims, and future planning.

If you are dealing with a workplace injury, managing a disputed claim, or unsure how the new rates may impact your case, legal guidance can help. S. McCorquodale P.C. works with both injured workers and employers to help them understand their rights and navigate the claims process with confidence. Reach out today to learn more about how these changes may affect you.

Texas Department of Insurance Approves 11.5 Percent Loss Cost Reduction

Starting July 1, 2025, workers compensation rates in Texas are expected to drop following a new decision by the state’s Department of Insurance. Officials approved a proposal from the National Council on Compensation Insurance to reduce the loss cost benchmark across the state by 11.5 percent. This change sets a new baseline that insurers must use when pricing policies after that date.

The approved reduction reflects positive trends in workplace safety and fewer claims being filed. It also shows that medical expenses linked to workers compensation have remained stable, allowing for a more affordable system overall. However, the impact on individual businesses will depend on their specific industry, payroll levels, and safety records.

Insurance companies were required to submit their updated rate filings by early June to make sure the new rates would be ready for use in July. These filings must follow the new loss cost guidance or offer a company-specific system that meets state rules.

While the rate cut is welcome news for employers, it also brings an opportunity to review existing policies and classifications. Understanding how these updates apply to your business can help ensure you receive the full benefit of the lower rates.

Why Are Workers’ Comp Rates Falling in Texas in 2025?

Several factors have led to lower workers compensation rates in Texas this year. Most importantly, the number of reported workplace injuries has continued to decline. Fewer claims mean insurers are paying out less, which reduces the overall cost of coverage. At the same time, the medical expenses tied to treating injured workers have remained steady, rather than rising sharply as they have in other areas of health care.

Many businesses have also made safety a bigger priority. By improving training and investing in risk prevention, employers are helping to avoid injuries before they happen. Return-to-work programs are also more common, allowing employees to resume their jobs in some capacity while they recover.

With these positive trends in place, state officials agreed that the overall cost of providing workers compensation coverage has gone down. That decision led to the 11.5 percent rate drop taking effect in July 2025.

Does the Rate Change Affect My Workers’ Comp Benefits?

If you were hurt at work, you might be hearing about the recent drop in workers compensation rates and wondering if it changes the benefits you receive. The truth is, these lower rates mostly apply to what employers pay for insurance. They do not reduce the payments or medical care that injured workers are supposed to get.

In Texas, workers compensation benefits are based on your average earnings before the injury and the type of harm you suffered. The rules that determine what you receive are set by the state and stay the same, no matter how insurance companies adjust their pricing for businesses.

Still, when insurance providers face changing rates, it can sometimes affect how quickly or carefully they review claims. This does not mean your benefits are at risk, but it can mean more paperwork or extra delays. If your payments are late or you feel your injury is not being taken seriously, it is a good idea to speak with someone who knows the system.

S. McCorquodale P.C. helps workers across Texas deal with these kinds of problems. If you are unsure what your rights are or need help with a slow or denied claim, you can reach out for guidance.

How S. McCorquodale P.C. Helps Injured Texans with Workers’ Compensation Cases

Dealing with a work injury is never easy. Medical appointments, time off the job, and confusing insurance paperwork can quickly become overwhelming. That is where S. McCorquodale P.C. comes in. The firm works closely with injured workers throughout Texas, helping them get through the claims process with fewer setbacks and more clarity.

If your benefits are delayed, denied, or you are unsure what steps to take next, the firm can guide you through your options. From preparing your claim to speaking with the insurance company and standing by your side if a hearing is required, S. McCorquodale P.C. takes care of the details so you can focus on recovery.If you were hurt at work and need answers, reach out today for a free legal consultation.